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Property Taxes and Hidden Costs When Buying Real Estate in Turkey

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Buying property in Turkey is one of the most popular ways for foreign investors to secure both strong real estate returns and a potential pathway to Turkish citizenship. However, beyond the purchase price, it is crucial to understand the taxes and hidden costs involved in the process.




1. Title Deed Transfer Tax (Tapu Harcı)

  • Standard rate: 4% of the property value (usually shared between buyer and seller, but often paid by the buyer).

  • Paid at the Land Registry Office during the title deed transfer.




2. Notary and Translation Fees

Foreign buyers must have official translations of their passports and sign purchase contracts with notary approval.

  • Average cost: $500–$1,000 depending on language and number of documents.




3. Appraisal Report (Ekspertiz Raporu)

Mandatory for all foreign property purchases.

  • Cost: $200–$400

  • Determines the official property value for tax and citizenship applications.




4. Real Estate Agent Commission

  • Standard: 2% of the property price (plus VAT).

  • Paid by the buyer unless otherwise agreed.




5. Annual Property Tax

  • Residential property: 0.2% of the declared value per year in metropolitan cities (like Istanbul).

  • Commercial property: 0.4% per year.




6. DASK (Compulsory Earthquake Insurance)

Every property in Turkey must be covered by earthquake insurance before utility connections.

  • Annual premium: $20–$150, depending on size and location.




7. Utility Subscription Fees

For electricity, water, and natural gas connections, buyers should expect to pay initial subscription deposits.

  • Average cost: $150–$300 in total.




8. Lawyer Fees (Optional but Recommended)

Hiring a lawyer ensures a safe and smooth purchase process.

  • Average: $1,000–$2,000, depending on the property value and services.




Key Takeaway

While the purchase price may be the largest cost, foreign investors should budget an additional 5–7% of the property value for taxes, legal fees, and other expenses. Being aware of these costs from the start helps avoid surprises and ensures a smoother buying process in Turkey.

 
 
 
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