Real estate prices in Turkey

The process of buying a property in Turkey requires some things that must be taken into consideration such as understanding the real estate prices in Turkey and what are the costs involved and choosing a property suitable for your taste and budget. All real estate in Turkey available for sale has a stable price, but the actual costs of buying a property in Turkey are not limited to the price of the apartment only, let us tell you about the most prominent expenses of buying a property in Turkey.

1. Legal taxes and fees

a. Value Added Tax (KDV)

In Turkey, VAT rates are set at 1%, 8% and 18% under the law. As for the purchase of real estate, it is generally 18%. However, if the investor meets the conditions stipulated in the law, it is possible to benefit from the exemption from VAT.

B. Title Deed Fee (TAPU Harcı)

According to the law, the average title fee is 4% of the sale price. The buyer and seller pay the title deed fees, while some owners ask the buyer to pay the fees in full, some of them ask to share them in half. On some occasions the owner pays the fees and the buyer does not need to pay them at all.

C. Service fee
For services provided by the TAPU office, the fees must be paid. These fees are set by the Ministry on an annual basis. For 2020, the prescribed service fee is 750 TL.

2. Notary and translator fees

Between 700-1000 TL will be paid to the notary. In addition, between 350 TL to 500 TL will be paid to the sworn translator for interpretation and passport translation.

a . Agent service fee

As is well known, real estate agents in Turkey are working on commissions. This is another important factor in calculating the costs of buying a property in Turkey. It is paid only when they complete the sale of the property. The commission rate in Turkey is 4% of the sale price, the owner pays the commission and the buyer does not need to pay it at all.

B . Lawyer fees

According to Turkish law, unlike other sales contracts, selling real estate in Turkey is a type of contract with special legal regulations. Therefore, we recommend that investors work with brokerage firms that work with internal lawyers. If the company you work with does not provide you with such a service, you should definitely get support from a lawyer. In this case, the service fee that you will pay to the lawyer starts from $ 1500.

After buying a property in Turkey

After the costs of buying a property in Turkey, another important factor which comes after costs. To maintain your property in Turkey, whether you decide to live in or rent your apartment, you must take these costs into account.

1. Property tax

By law, the property tax rate for homes is as follows. It is 0.2% of the market value within the limits of the capital. In non-urban municipalities, it is 0.1% of the market value.
For commercial places, prices change. It is 0.4% of the market value within the limits of the capital. In non-urban municipalities, it is 0.2% of the market value.
The property tax is imposed annually and the tax is paid in two installments during the year.

2. Compulsory insurance (DASK)

(DASK) is a form of compulsory insurance under the law. This insurance covers natural disasters such as earthquakes, fires, etc. This insurance must be renewed annually. Insurance costs vary according to the size and quality of the property. The fee varies from 100 TL to 300 TL.

3. Services

Likewise, as much as using gas, water, and electricity, the bills will be greater. The main services paid by the bill in Turkey are gas, electricity, water and the Internet. These bills come on a monthly basis.
While subscribing to gas, water, and electricity, an insurance deposit is paid and will be refunded upon closing the subscriptions. The deposit resulting from the property owner as shown.
Deposit the water subscription as 196.50 TL for 2020.
Deposit insurance subscription for electricity as 198 TL.
Gas subscription deposit of 700 TL for homes.

4. Maintenance fees and utilities

For every residential site or apartment complex, there is a type of facility and service that is provided to homeowners and residents. Prices depend on the location of the property and the size of the house. Maintenance fees start from 100 TL and reach 2,000 TL.

3. Real estate rental expense in Turkey

Renting real estate in Turkey is the main goal for our investors after purchasing them. The costs of buying a property in Turkey do not end in the first two stages that we mentioned earlier. There are some costs to rent your property, which we will explain below.

1. Property tax

The property tax is the result of being a real estate owner in Turkey because as long as the investor keeps the property you must pay the property tax. This section was explained previously above.

2. Compulsory insurance (DASK)

The owner is responsible for purchasing DASK insurance. This section is explained above.

3. Rental income tax

In Turkey, every person who owns a property or a business is subject to income tax. The rental income tax is calculated on the statement and paid in two equal installments in March and July of the year. The income tax rate for investors who earn from rents under the new law is as follows.

Rental income

15%: Taxable income up to 22,000 TL.
20%: income of more than 22,000 TL and up to 49,000 TL (in addition to 3300 TL versus 22,000 TL),
27%: income over 49,000 TL and up to 120,000 TL (in addition to 3300 TL versus 49,000 TL),
35%: income over 120,000 TL and up to 600,000 TL (in addition to 27,870 TL versus 120,000 TL),
40%: income over 600,000 TL (in addition to 195,870 TL versus 600,000 TL),