Cost of buying property in Turkey is economical and buying process is simple in comparison with the other countries. Cost of buying property changes depending on the seller’s statue. All of the expenses are explained in details below but in summary, if you buy property directly from the developer total expenses are around %2,2. If it’s a re-sale property total expenses are around %4,2.
Tittle deed fee is paid throughout the banks in the sales day. Tittle deed fee is determined as %4 by the government. (as in 2% for buyer and %2 for seller). The tittle deed fee that the buyer needs to pay is %2 of the declared amount of the property.
Land Registry and Stamp Duty is paid together with the tittle deed fee throughout banks. The amount is determined as 327 TL by 2020. Usually developers pay 327 TL.
For the properties directly bought from the developer the VAT rate is %1. Usually developers pay the VAT.
Before the sales your passport must be translated in Turkish by a licensed translator and must be notarized. Also, in the tittle deed office, you are obligated to sign sales documents with a licensed translator. Translator and notary expenses can be expected between 1000 TL to 1500 TL.
Property appraisal must be done by a SPK (Capital Markets Board) Licensed firm. Appraisal firms charge around 1.000 TL to 1.500 TL for a regular apartment.
Real Estate Brokerage fee or real estate commission is %4 as in %2 from the buyer and %2 from the seller. Usually developers pay all the brokerage fee.
In Turkey, using of a legal representative (lawyer) for real estate sales is not an obligation. But if you prefer to have legal service from the outside firm for the tittle deed process, legal fees around 1,000 USD – 1,500 USD.
These are the amounts that you need to pay for utility registrations by 2020,
Gas registration: 700 TL
Electricity registration: 277 TL
Water registration: 197 TL
In total: 1,174 TL
Earthquake Insurance (DASK) is obligatory and must be renewed annually. Prices change by m2 and the type of the property. Annual earthquake insurance for 100 m2 apartment in Istanbul is around 250 TL.
Let’s say you decide to buy an apartment from a developer for 1,750,000 TL (250.000 USD)
Price of the apartment: 1.750.000 TL (250.000 USD)
Tittle Deed fee: 35.000 TL (5000 USD)
Notary and translator fee: 1300 TL (200 USD)
Property Appraisal fee : 1300 TL (200USD)
Utility Registration fee : 1174 TL (165 USD)
Total Expenses : 38,774 TL – 5,565 USD (apx %2,2 of the property price)
*VAT, Land registry and Real-Estate Brokerage firm is assumed that is paid by the developer.