What are the expenses associated with purchasing a property in Turkey in 2023?
Upon finding your desired property at the ideal price, you may encounter unexpected costs, including Title Deed expenses, document translations, insurance, notary fees, and more. In this overview, I will detail all the expenses to anticipate when buying a property in Turkey.
Governmental Taxes: 2%-4% + 4.000 TL
When purchasing a property, be aware of two types of taxes:
- Title Deed Expenses: As per Turkish Law, title deed expenses amount to 4%, ideally split with 2% paid by the buyer and 2% by the seller. However, it’s common for the buyer to cover the full 4%.
- Doner Sermaye: This refers to working capital tax, a small government tax allocated to the general expenditure budget. Turkish citizens pay around 1.500 TL, while foreigners may pay up to 4.000 TL.
Commission Fees: 2%-4%
For Second Hand Houses: Officially, the Turkish Government specifies a 4% commission fee, split into 2%+KDV from the buyer and 2%+KDV from the seller (KDV being the VAT at 20%). Depending on the services provided, an agent may request higher fees.
For First Hand Houses: When buying directly from the developer, you may not pay title fees immediately or commission, but a 1% fee may be requested by the sales office to cover transactions.
Also, if you are buying a property under construction, you might be subjected to Notary Fees of around 80.000 TL.
Expert Report: 6.000 TL
The Turkish government requires a valuation report for properties sold to foreigners. This report, costing around 6.000 TL, assesses the property’s value relative to the market and identifies any legal issues.
Earthquake Insurance (DASK in Turkish): 1.000 TL
Mandatory since the 1999 earthquake, this yearly insurance policy varies based on property size and age but averages around 1.000 TL.
Passport Translation Fees: 1.000 TL
Foreign buyers must submit a translated photocopy of their passports from a notary, with one translated copy typically costing 1.000 TL, including a 300 TL fee for the translator.
Judicial Translator Fees: 4.000 TL
Upon receiving the title deed, a sworn judicial translator is mandatory, with fees around 4.000 TL, subject to change based on the language translated.
Proxy Fees: 2.500 TL - 3.500 TL
If a third person, not a lawyer, handles the purchase, proxy costs with translation are approximately 2.500 TL per proxy. If a lawyer manages the transaction, fees could be considerably higher, averaging around 15.000 TL.