Costs of buying a house in Turkey 2022

Turkey is an attractive country for investors because of the advantages it offers from high profits within a short period in addition to tax exemptions and various facilities . Turkey is emerging as a haven for real estate investments, a rising country full of real estate opportunities and emerging as a haven for high value-added and profitable real estate.

Now is the best time to buy a house in Turkey. A lot of locals and foreigners invest in the real estate market for profit. You can make money easily by buying a house in Turkey and selling it after only six months.

Through the following article, the editorial team at TUR PROPERTY Real Estate will brief you on one of the important real estate topics (the costs of buying homes in Turkey), also, many important details about the real estate sector in Turkey will be highlighted.

Is it easy to buy houses in Turkey?

Yes, it is easy to buy a house in Turkey.. as the taxes that are added to real estate include Turks and foreigners, and there are no taxes imposed on foreigners only, as the Turkish government treats foreigners on an equal footing with Turkish citizens.

The process of buying houses in Turkey:

This process in Turkey is very similar to the one that occurs in many other European countries. A deposit is paid when the contract is signed and the final payment is made in connection with the transfer of title deeds.

What documents are required?

• A copy of your passport
• 6 passport-sized photos
• A bank account in a bank
• Turkish tax number

Signing the purchase contract:

When you decide to go ahead with the purchase of a home, a purchase agreement will be entered into and a deposit will be paid.

Once all parties sign the contract and pay the deposit, the contract becomes binding.

The deposit amount varies from property to property, but as a general rule, you place a deposit of up to 10% of the purchase price.

If you later decide to cancel your contract, you will lose the deposit.

value added tax

It is a good value for people looking to buy real estate. It is usually included in the selling price offered by property developers. It is paid directly to the government at the time of handing over the property.

 But fortunately, Turkey has relaxed tax procedures and laws for foreign property buyers to boost real estate development across the country. 

In 2017, the government enacted a law exempting foreign property buyers from paying value-added tax in Turkey, but under certain conditions.

But we cannot say that all foreign investors are exempt from VAT, as only foreign investors who meet certain conditions can be exempted.

What are the conditions for exemption from value-added tax in Turkey?

-Foreigners who do not live in Turkey permanently

Turkish citizens who have residence or work permits and who have been living in another country for more than six months

Organizations that do not have legal headquarters or residences in Turkey.

It is important to note that Turkish citizens who live in other countries and who work in Turkish enterprises or institutions will not be eligible for VAT exemption.

The applicant must not have a valid residence permit in Turkey from the previous year.

The applicant must not have a registered address in Turkey.

Foreign corporate entities must not have a headquarters in Turkey.

-Paying the value of the property in foreign currency, and the money paid must come from outside the country exclusively, either by bank transfer or a customs declaration document in the case of transferring money to Turkey in cash.

The property must be new, as the exemption does not include old properties.

The real estate covered by the exemption must be limited to residential buildings (villas, apartments and condominiums) and similar commercial properties (workplace offices). As for agricultural lands and other types of real estate, they are not covered by this exemption.

The real estate benefiting from the exemption may not be sold again for one year.

The exemption from VAT is geared towards the purchase of newly built real estate. .

Paying the value of the property in foreign currency exclusively, and the money paid must come from outside Turkey.

Fees for papers and documents required:

In the last stage, both the buyer and the seller will meet at the local real estate office. To transfer the title deed, this process lasts an hour at most, and foreigners are required to have an official translator available to certify the registration process.

Based on this process, the buyer must pay a set of fees and taxes before signing the final contract.

What are the fees and taxes involved in buying a property in Turkey?

When a foreigner buys a property in Turkey, he must pay a set of fees and expenses:

Real estate appraisal report fees of a maximum of $200.

The appraisal report is a document that determines the value of the property and is required prior to finalizing the title deed transfer process.

Earthquake insurance policy, which fees for extracting and obtaining it vary from one property to another, according to its location / specifications / age / modernity and other details.

register fees:

These expenses include:

Official translator fee

Notary translation fee

Passport translation

power of attorney

Other documents required to register the title deed.

Title Deed Transfer Tax

The transfer fee is about 4% of the sale price, to be paid equally between the seller and the buyer and sometimes it is agreed to be paid by the buyer alone.

Annual property tax

The annual real estate tax in Turkey depends on where the property is located, as it varies quite a bit between urban and non-urban areas.

Agency commission fee

Real estate agents are paid on a commission basis. The customary rate in Turkey is 2% of the selling price.

Lawyer service fee

Unlike other types of sales contracts, real estate sales are subject to certain legal requirements under Turkish law. As a result, buyers are advised to work with real estate agencies that have in-house legal counsel.

Compulsory property insurance

 It is a mandatory type of insurance. This insurance covers natural disasters such as earthquakes and fires.

Utility subscription fee

 Such as electricity, water, gas, telephone and internet service and varies from one property to another. .

Maintenance fee

When buying a property in Turkey, you will have to pay a maintenance fee for the common facilities

How can foreigners pay taxes in Turkey?

The most important advantage of paying taxes in Turkey is that you will pay it in two installments. Anyone can pay the tax by visiting the municipality in which the property is located

If you do not want to pay taxes through the municipality, you can do so via the Internet or the bank.

In the end

Despite some fees and formalities, the real estate market in Turkey remains an opportunity that you cannot give up because of the size of this market and the expected profits.

In addition to the low value of real estate taxes in Turkey when compared to other European countries and the United States of America.

In order to see more details about buying homes in Turkey, you can follow our website constantly because we are keen to monitor the real estate market for you on a permanent basis, so that you are always aware of everything related to it.

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