What are the costs of purchasing property in Turkey?

When buying a home in Alanya, the sales price is not the only cost you will make. One of the first questions interested buyers ask us is: ‘What are the additional costs when buying property in Turkey?’ Well, unlike in other countries, the costs when buying real estate in Turkey are very low, so you probably will be surprised about the money you can save for decorating your new home. To assist our potential buyers, we have made a list of all the additional expenses that will arise from buying a home in Alanya, from taxes to service fees.

Appraisal report

Before transferring the title deed to the buyer’s name, an appraisal report is obligatory. The costs of a validated appraisal report, depending on the size of the property and the location, lies between 1.300 and 2.500 Turkish lira.

Fees arising from the transfer of the title deed (Tapu)

During the transfer of the title deed to the buyers name, both the buyer and the seller must be present for signing. If you are not going to be signing the title deed transfer yourself and you ask someone else to sign on your behalf, you will need a power of attorney. This power of attorney needs to be signed by you at a notary and will cost approximately 1.500 Turkish lira.

The buyer needs to pay 4% of the declared value of the property as title deed conveyance taxes. Examples of such taxes include some forms of stamp duty, real estate transfer tax and fees for the formal registration of a transfer. Note that the declared value of the property at the title deed office is usually about 60% op the actual purchase price. Under-declaration is very common in Turkey and so tax authorities test the reasonableness of declarations: about 50-60% of actual market value is accepted as reasonable.

Miscellaneous paperwork during the process of buying property in Turkey cost on average 400-500 Euros. This covers the following costs and taxes:

• Sworn translator
• Power of attorney if preferred as stated above
• Obtainment of a tax number
• Passport translation
• Passport photographs
• Address document translation for opening a bank account
• Cadastral taxes - Tapu Kadastro Harcı
• Processing fees of circulating capital – Döner Sermaye Harcı

Real estate agency fee

In Turkey a fee of 3% (2% + VAT) over the purchase price is paid to the real estate agent by both parties as standard. This agency fee is payable upon the signing of the property purchase contract. If companies try to charge a higher ór a lower fee then be careful. As a lower fee seems favourable on paper, the agencies will recoup the fee from the developer who will pass it onto you, hidden in the purchase price. We at Home Catcher will always charge a 3% fee for our work and assistance when you buy your ideal property in Alanya.

Property and Earthquake Insurance

The compulsory earthquake insurance (DASK) is needed at the time of signing for your title deed. It covers risks that may arise from an earthquake, explosion, tsunami, landslide or fire. The costs depend on the size of your property. The DASK fee varies between 200 to 400 Turkish lira per year. Next to this obligatory insurance, we will advise you to also obtain a property insurance. This provides protection against risks to the property and gives financial reimbursement to the owner of the object in case of a valid claim.

Electricity and water subscriptions

When you buy real estate, whether it is new built or from a previous owner, you will need to get the electricity and water on your name. Electricity and water subscription fees and deposits will cost about 1.000 to 1.300 Turkish lira.

After the purchase

After the purchase there are reoccurring costs such as property tax, which is paid per year and very low in Turkey: it consists of 0.2% of the declared value in metropolitan municipalities and 0.1% in non-metropolitan areas. It is used for sewer improvements, fire service, law enforcement and other government services. Another reoccurring cost is the maintenance fee or aidat, which is mostly charged monthly by the management of the complex where your new home is situated. It is used for communal facilities and services at the complex like maintaining the garden, swimming pool and spa, providing security and other services.

Overall, you will have to budget 7 to 8,5 percent of the purchase price to cover expenses and costs. These contain only the one-off costs, not the ongoing costs like taxes and maintenance fees. The costs of buying property in Turkey are about one third of Spain and less than a quarter of France and thus considerably low.

Would you like to know more about these costs, the buying procedure or the available objects matching your wishes? Please contact us without obligations by phone, or send us a message. We would like to help your further with your search for your ideal property in Alanya.