Cost of Buying A Home In Turkey
One of the most frequently asked questions about buying a property in Turkey is how much does it cost? We advise our clients to budget for an extra 7-8% on top of the purchase price to cover any additional costs and expenses.
This is a one-off cost that you incur when purchasing a property in Turkey and are only paid once you have purchased the property. The ongoing costs that occur once you own the property such as maintenance fees and taxes etc. are considerably lower in Turkey, roughly about one third of what you would pay in Spain and less than a quarter of what you would pay in France. This making buying a property in Turkey a more favorable choice when looking at purchasing real estate.
If you bought a home in Turkey for 200,000 Euro in 2022, the additional fees and costs on top of the purchase price that you can expect to pay are:
7,300 Euro for stamp duty
1,200 Euro for legal fees
6,000 Euro for buyer fees
500 Euro for any additional expenses
The total for additional costs would be approximately 15,000 Euro
In Turkey there is a property buying tax or stamp duty and this would amount to 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 you calculate 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 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 but be aware that some companies may try to charge you a higher fee. This is also payable upon the signing of your property purchase. There may be some miscellaneous paperwork and approval that may need completing and you should budget approximately €500 for this. Overall, fees involved when buying a property in Turkey are relatively cheap when compared to other European nations such as Spain, Italy and France where you can expect to pay anything from 10-20% extra in fees. This makes buying a property in Turkey a much more affordable option for many people or investors who are looking to buy Turkish Real Estate for a holiday home or retirement home.
When buying real estate in Turkey VAT is also payable but this is always included in the purchase price so no extra payment is needed for this.