Buying a property overseas can be confusing, and because we want you to be up to date with how this works, in this article, you can find all the information you need to know about property taxes in Türkiye.
Title deed/Property ownership Transfer Tax
This tax is 4% of the total price paid for the apartment. It is shared equally by both the seller and the buyer. However, in some cases, the buyer pays it in full.
VAT (Value Added Tax)
Its worth ranges between 1% and 18% of the total property value. It differs depending on the property (the area in which it is located, city, space, number of rooms, and specifications) and a variety of other factors.
- 1% VAT applies to residential units with a net area of less than 150m2.
- All residential units with a net area of more than 150m2 and all commercial properties are subject to 18% VAT.
However, this can be exempted if you meet these three conditions
1. If it is your first time buying Real Estate in Türkiye
2. If you don’t have a residency permit in Türkiye
3. If you transfer money from outside of Türkiye for the purchase of Real Estate
Fees for Obtaining Valuation Report/Expertise Report
The regional price of the property is accurately recorded and presented to the government in this report. The fees for obtaining this document vary by property, but they generally do not exceed 400$.
Turkish Stamp Duty
It is levied on sale & lease contracts. The rates range from 0.15% to 0.75% and are determined by the contract’s value.
DASK document extraction fee
The earthquake insurance document is extracted to ensure the buyer’s right to compensation in the event of an earthquake or natural disaster. The tax is paid to an insurance company and is worth between 200$ and 300$.
Utility Charges
Depending on the property, opening the connection meter for water, gas, and electricity costs between 300$ and 700$.