Costs of buying a property in Turkey 2022

Are you the one who is wondering about the costs of buying real estate in Turkey? This is one of the most searched topics when buying a property in Turkey, as you know that it does not end when you pay for the property only, there are many other fees and taxes. One of the most important tips that are offered in this regard to real estate buyers is to see all the costs and expenses that will be in front of you so that you are not surprised later by what you have not calculated.

In this article, we will discuss this aspect of owning real estate in Turkey so that you have a sufficient perception of everything that will be encountered.

Costs of buying real estate in Turkey:

Before we start talking and discussing the costs of buying real estate in Turkey, we must mention that the value of real estate varies according to many factors and elements, most notably its location, area, number of rooms and the view it enjoys. You should know that all costs that you have to pay and reimburse are based on the final value of the property.

The following are the most important things that real estate buyers should know when owning real estate in Turkey:

1 - The price of the property:

This comes first. After you find the property that suits you, you have to pay for it according to the method that was agreed upon, whether it is full payment or in installments, and it must be paid for by transferring it through a bank in Turkey and after that do not forget that you must obtain stamped receipts from the bank Confirm the transfer of the amount through it, this is one of the documents that must be submitted.

2 - Real estate title fees:

Real estate buyers in Turkey should know well that to obtain the title deed of the purchased property, an amount of 4% of the total property price must be paid. In this context, we must note that this amount is paid by the buyer and seller together, that is, each of them pays 2%, and sometimes the buyer pays it only.

At other times, the construction company bears the fees for obtaining the title deed of the property. For example, if the price of the property is one hundred thousand US dollars, the value of this tax will be four thousand dollars.

3 - Real estate appraisal document:

The real estate appraisal document is one of the most important conditions for real estate ownership in Turkey, due to the importance of the role it plays, as it controls real estate prices and closes the way for fraudsters and deceivers. The property is valued by a competent authority licensed by the Turkish government.

The value of this report does not exceed $200, and if the buyer has purchased the property through a real estate company in Turkey, it is the one who bears this cost.

4 - Translation and attestation of documents:

The foreigner must translate the papers and documents required to purchase the property, such as the passport, the real estate appraisal document, and others. These translation and certification fees may reach three hundred US dollars, sometimes less than that, and sometimes more.

5 - Value Added Tax:

One of the most important basic taxes when buying a property in Turkey is the value-added tax, whose value ranges from 1% to 18% of the total property value. This disparity is based on the property’s specifications, area, and location. The more luxurious and sophisticated the property is, the higher the value of this tax.

It is worth mentioning that in many cases the foreigner is exempted from it, or if it is paid, it will be only one percent, and the percentage of 18 percent is only for very luxurious properties or commercial properties.

6 - Opening water, electricity and internet accounts:

In any new home you buy in Turkey, you will have to open the water, electricity, gas and internet meters, and the cost of this varies from two hundred to three hundred US dollars.

7 - Earthquake insurance policy:

As for this document, it is imposed on real estate in Turkey in order to insure it against natural disasters and earthquakes, and it is paid annually with a value of up to fifty US dollars. In the event that the property is subjected to any harm, the owner will receive compensation of up to 200 thousand US dollars.

8 - Housing costs in an apartment complex:

The residential complexes have become the most in demand at the present time because life in them is characterized by comfort and luxury. But whoever chooses to buy an apartment in it should know that there are many additional costs that are paid monthly in exchange for cleaning services, periodic maintenance and security guards.

When is a foreigner exempt from paying value added tax?

According to Turkish law, there is a category of foreigners who are exempted from paying the added tax, and these cases are exempted from:

1 - In the event that the buyer transfers the value of the property from a foreign bank to the seller’s account in Turkey or the creating company.

2 - If the buyer proves that this is the first time he is buying a property in Turkey.

3 - Often the construction company makes an offer that the value added tax is combined with the total property price.

4 - Some construction companies pay this tax instead of the buyer, and this is one of the privileges that they provide.

Other costs when buying a property in Turkey:

You must bear in mind that there is an amount of property reservation that must be paid, which is not a cost like the others that we have already talked about above, but the amount must be available, as part of the price of the property is paid a few days before signing the contract of sale, and this is what lot of Construction companies request.

The amount that must be paid to reserve the property is up to one thousand five hundred thousand US dollars, and there are many construction companies that require the reservation amount to be five percent of the property value.

This amount that was paid will be deducted from the value of the property later, but you should know that if you decline to complete the purchase of the property, it can be returned.

The buyer who submits the reservation amount to the construction company must receive a receipt or a document confirming this.

Are real estate prices in Turkey high?

One of the common questions among the investors and everyone looking for real estate and apartments for sale in Turkey (are the prices and costs of buying real estate in Turkey considered high, or are they low and appropriate?)
If you want to compare prices between Turkey and European countries, you will surely find prices in Turkey very moderate and appropriate. Add to your information that the property you will buy in Turkey cannot be obtained similar in terms of specifications, importance and advantages in Europe at the same cost.
One of the important information that you should know is that in a report by the American newspaper The Times :real estate prices in Eastern Europe are higher than Turkey by between fifty and sixty percent, and prices in Western Europe are higher than Turkey by between eighty and ninety percent, which makes the order of ownership In those countries, it is almost impossible for people with low or medium budgets.
While in Turkey there are no limits for anyone, the great real estate diversity witnessed by the real estate market in Turkey made it suitable for all budgets.
In your opinion, why are real estate prices in Turkey rather low? So, after you learned that prices in Turkey are appropriate and stable, and you have seen their high quality, sophistication, modernity and luxury, you are sure that you are wondering why they are appropriate and moderate.
In fact, there are several main things that contributed to its stability, most notably the Turkish government's approval of the necessity of extracting the real estate appraisal document that controls prices and prevents sellers from manipulating prices and also thanks to the Turkish government's continuous follow-up of the real estate market.

Finally, we hope that we have answered all your inquiries related to the costs of buying a property in Turkey. If you have any other questions, just contact us so that we can provide you with the most important and accurate information you need.