Understanding the Costs Involved in a Property Purchase
When purchasing property in Turkey, buyers should be prepared for several additional expenses that come before, during, and after the transaction. Understanding these costs helps ensure a smooth purchasing process and avoids financial surprises.
Here is a breakdown of the main expenses:
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Appraisal Report Fee (Real Estate Valuation): The valuation report is a mandatory requirement. It must be provided during the property purchase process.
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Title Deed Conveyance Costs (Property Tax): Property tax is 4% of the property's sale price, and it is typically split equally between the buyer and the seller, with each party paying 2%.
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Lawyer Expenses: Although hiring a lawyer is optional, it is highly recommended for foreign buyers to ensure that all legal procedures are properly followed.
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Value Added Tax (VAT): VAT on property purchases in Turkey varies depending on the type of property. It can range from 1% to 20%, depending on factors such as property size, price, and location.
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Property and Earthquake Insurance (DASK): Earthquake insurance is mandatory in Turkey. While additional property insurance is optional, it is highly advised for further coverage.
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Utility Connection Fees: New owners are required to pay for electricity and water connection, which varies depending on the region and the provider.
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Furnishing Costs: Furnishing an unfurnished property is an optional expense and varies based on personal preference.
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Monthly Maintenance Fees: Commonly known as "aidat," these fees cover the upkeep of shared facilities and services. The amount varies based on the amenities offered by the property.