Costs of buying a home in Turkey

Costs of buying a home in Turkey
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How much will it cost to buy a property in Turkey?  This is one of the most frequently asked questions. We would advise our clients to budget 7-8% to be added on top of the purchase price to cover any additional costs and expenses.  These are one off costs when purchasing a property in Turkey and would only be paid once when you purchase a property.  Ongoing costs that occur when you own a property such as, maintenance fees and taxes etc are considerably lower in Turkey, about one third of what you would pay in Spain and less than a quarter of what it would cost in France. 

 If you bought a home in Turkey for 200,000 Euro in 2014, the fees and costs that you would pay in addition to the purchase price would be:

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7,300 Euro stamp duty

·        

1,200 Euro for legal fees

·        

6,000 Euro for Buyer fees

·        

500 Euro for any other expenses

The total additional costs would therefore be 15,000 Euro

In Turkey there is a property buying tax or stamp duty and this would amount of 4.4% of the assessed value of the property.  The assessed value of the property is normally about 60% of the purchase price.  This is payable when you register the property title deed into your name.  If you are  buying an off-plan property this is only paid when the property has been completed.  

The assessed value of the property is also known as the declaration amount.  The property is almost always under declared so the authorities have a method of testing the fairness of declarations. On average 50-60% of the actual market value is accepted as a fair price.  We would suggest that you allow for 60% of the value of the property when calculating the stamp duty.   You should expect to pay 4.4% x 60% which is 2.6% of the purchase price as the property tax or stamp duty. 

The fee for a solicitor when purchasing a property would be about £1,000 or 1,200 Euro although this can vary due to the complexity of the purchase, legal fees are payable upon the signing of the property purchase contract.

There is a standard agency fee of 3% when buying a property in Turkey,  be aware that some companies may try to charge you a higher fee.  This fee is also payable upon the signing of your property purchase. There may be some miscellaneous paperwork and approvals that may  need completing and you should budget approximately 500 Euro for this.  Overall, fees involved when buying a property in Turkey are relatively cheap when compared with other European nations such as France, Italy or Spain where you would expect to pay anything from 10-20% extra in fees.  This make buying property in Turkey a more affordable option for many people or investors looking to buy Turkish real  estate for holiday homes or retirement homes.

 

When buying real estate in Turkey VAT is also payable but this will always be included in the purchase price so now extra payment is needed for this.