Expenses of Buying Turkey Real Estate 2024
Turkey real estate prices are competitive with real estate prices in major cities like Dubai, London, or New York. Thus, the annual increase in Turkey real estate prices is good and encouraging for investment. The Turkey real estate market has many advantages that make Turkey one of the most important countries at this level, and this is what attracts investors and tourists from all over the world.
The development that Turkey's cities have achieved in the economic, cultural, tourism and educational fields has played a major role in people's desire to buy real estate and go to Turkey and search for apartments for sale in its states, and this has played a major role in the boom in its real estate market.
Turkey real estate and some misconceptions
Many people believe that buying Turkey real estate is something difficult to achieve, and many consider it just a passing idea and nothing more, ignoring that this is not impossible and that it is achieved and is not expensive, as the prices of Turkey real estate of all kinds are not considered expensive, according to studies conducted regarding housing and buying between Turkey and European countries.
The conclusion was that many Europeans and businessmen prefer to buy Turkey real estate rather than in European countries. The large material differences between Europe and Turkey have made the latter the focus of attention for many merchants, brokers, and money people who want to buy at special prices. Moreover, Turkey's cities are famous for their reasonable prices and distinctive specifications, so saving a good amount of money may enable you to start buying a modest and simple property in Turkey.
But this is not all, as there are many financial details and steps related to buying Turkey real estate that we will know about in this article:
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Financial details related to buying Turkey real estate
Title Deed (Tapu):
In most European countries, a public notary's office transfers title deeds. Yet, in Turkey, the General Directorate of Land Registry and Cadastral Survey implements the procedures. Both buyer and seller must be present unless either party grants power of attorney.
A property transfer tax of 4% of the declared value of real estate is paid in the Property Titles Department, as a transfer tax. Noting that the buyer pays the title deed tax. There are also many costs and taxes around 3.500 TL which are:
- Passport translation at a notary (800-1000 TL per person)
- Translation of the address document at a notary to open a bank account
- Sworn translator
- Power of attorney (optional)
- Obtain a tax number
- Land Registry Tax
In addition, the Land Registry Directorate charge a service fee - which is paid only once and is approximately $150.
The property tax:
Property tax, after purchasing real estate in Turkey, is paid every year and is 0.2% in urban municipalities and 0.1% in non-urban areas. The tax rate on commercial properties is 0.4% in urban areas and 0.2% in non-urban areas.
Taxes are used by the government to improve water and sewerage, and provide security personnel, fire services, and other necessary needs that the government deems necessary. We can say, after mentioning these taxes on Turkish real estate, that they are nothing compared to taxes in Canada, America, and Europe.
Real estate and earthquake insurance:
Earthquake Insurance (DASK) is mandatory in Turkey and is calculated on a square meter basis. Risks that may arise such as fire, explosion, tsunami or landslides during and after an earthquake are subject to seismic insurance. Fees range from 150 TL to 250 TL (depending on the square meter).
Real estate insurance provides protection against most risks to the property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, and home insurance. Real estate insurance provides financial reimbursement to the property owner in such cases.
Obtaining electricity and water subscriptions:
Subscription fees for electricity and water vary from a province to another.
Electricity subscription fees:
When subscribing for the first time, you will pay between 200 TL and 850 TL for the electricity subscription and additional deposit fees. The transfer fee is as much as the deposit amount.
Water subscription fees:
When you sign up for the first time, you have to pay 775 TL for the subscription fee and additional deposit fee. The transfer fee is as much as the deposit amount plus DASK if it expires.
When buying an apartment in shared service buildings or a residential complex, there is a monthly fee for the apartment complex that goes to public utilities such as escalators, swimming pools, garden maintenance and security. These fees range from one complex to another, from one building to another, and from one area to another. It should be noted that the more services the complex provides, the higher the percentage of fees or revenues.
Turkey real estate and investment:
Investment in Turkey real estate is considered among the first and tempting options for both local and international investors. This is for several reasons and advantages that Turkey enjoys over other countries. These features can be summarized as follows:
- Reasonable prices compared to real estate prices in Britain, America, Canada, and even some European countries, compared to all the commercial and economic advantages that Turkey enjoys.
- Turkey's strategic location between the continents of Europe and Asia, making it a vital center for trade and investment. This also makes it a target for foreign investors, especially those who want to invest in commercial real estate.
- Obtaining Turkish citizenship by purchasing Turkey real estate worth $400,000, provided that the property is purchased from a Turkish citizen and not sold for 3 years.
- Obtaining real estate residence permit by purchasing Turkey real estate worth $200,000 in any Turkish city and enjoying the benefits of real estate residency.
- Turkey's real estate market has a great diversity of properties on offer, with a variety of properties available in different sizes, styles, locations and views, ranging from luxury residential apartments to commercial buildings, hotels and large projects.
- The return on real estate investment in Turkey is short-term, attractive and very motivating for investors, as the market has enjoyed stability and continuous growth over the years. Turkey real estate prices never decrease, but rather increase.
- The facilities provided by the Turkish government to foreign investors through tax exemption on some properties and places and exemption from some fees as well.
If you would like to know more about buying Turkey real estate, do not hesitate to contact us via WhatsApp, here. The real estate consultant will contact you immediately.
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