In contrast with the European market, the acquisition cost of an apartment or villa in Turkey is very low. If you add on another 3-4 percent, you have the total cost of the purchase. Indeed, only 3 till 4 percent purchase cost! As you notice; the additional purchase cost is indeed very low. Not only the prices of real estate in Turkey are a whole lot – or even more than half – lower as in Europe; but also the additionally cost of purchasing an apartment or villa in Turkey is only a fraction of what you would pay in some European countries.
The total acquisition cost for a villa or apartment in Turkey is less than 4%
But the fun doesn't stop yet: even the annual costs – the so-called fixed costs – are very low. All these things make the purchase of an apartment or villa in Turkey - in addition to a number of other reasons - financially and fiscally very attractive; especially because of the excellent investment potential.
One-time costs in Turkey buying a villa or an apartment
Registration tax
The registration tax – when buying a property in Turkey – is 4% of the value stated on the Tapu. Since this stated value is almost always much lower than the real value of the property; the registration tax is a lot less than 4% of the purchase price. This explains why the average total purchase cost is maximum 4%, while just the registration tax is already 4% ... This is just the Turkish system and it is good for everyone; except for the Turkish state … More information about this issue can be found at our info page about the Tapu.
Registration fees
The costs for the registration of the title deed and drafting the Tapu; like fees for the translator and the notary ratification of the translation, passport photos, power of attorney and the like. These expenses amount in total not to more than 2000 to 2500 Turkish lira (250 Euro or USD) usually.
Connection water and electricity
Connecting water and electricity: you should provide up to a maximum of one thousand Turkish liras (about 300 euros) for these services.
So far the cost of acquisition; but then there are of course also the annual fixed costs.
Annual fixed costs of your villa or apartment in Turkey
Annual property tax
The annual property tax of your villa or apartment in Turkey is between 0.3% and 0.4% of the value stated on the Tapu. Also here we have again the advantage of the lower registration value. This ensures that not only the purchase costs, but also the annual running costs for your property in Turkey are low. Moreover, this tax can be paid in two installments if you wish: the first half at the latest at the end of May and the second half at the latest at the end of November.
The annual property tax in Turkey is very low
The property tax can be paid in the municipality where your property is located, and whether you need to submit a copy of the Tapu (the first time) or previous receipt (the second and subsequent payments). You can also submit every time just the Tapu if you prefer. If you subscribed for the RealProinvest Diamond Service Pack; we arrange these things for you.
Garbage Tax
The garbage tax: according to the location of your property is between 50 to 60 Turkish lira per year (less than 20 Euro per year). Also the annual payment of the garbage tax is included in our RealProinvest Diamond Service Pack.
Aidat
Maintenance and common costs (Aidat) for the residence in which your property is located: this amount varies between 100 and 450 Turkish lira per month, depending on the size of the residence and the services in the residence. It goes without saying that the Aidat in an exclusive luxury residence with a very large garden and a comprehensive service package including an indoor heated pool, fitness, sauna, steam room and so on; is higher than in a small residence with only an outdoor pool in a small garden.
Obviously, this cost is omitted if you have purchased a property – such as a single detached villa – that is not located in a residence.
Compulsory insurance
The DASK compulsory insurance against the consequences of an earthquake. Since this insurance contribution is calculated on the value of the property as stated on the Tapu – and again the low registration value system ensures that the fixed costs are limited – is this a marginal cost; approximately between 70 and 300 Turkish lira (25 to 100 Euro) per year.
The annual fixed costs for a villa or apartment in Turkey are very low
So far the annual real "fixed" costs for your villa or apartment in Turkey. If you decide to take any supplementary insurance, this is obviously a part of the fixed costs. However – since these are completely voluntary and the amount can vary widely depending on the chosen insurance policies – it is very difficult to define a fixed amount here. Depending on the value of your home and what is covered by the insurance, the price of those will vary between 200 and 2000 Turkish lira (60 to 600 Euro) a year. More information can be found on our service page about insurance and of course you can ask your questions to the staff of RealProinvest.
And that's about it regarding the purchase costs and fixed costs for your villa or apartment in Turkey. Obviously there are still some things to like water and electricity bills; but these amounts are of course entirely dependent on your usage. Customers who use the RealProinvest Diamond Service Pack don’t need to deal with the payments of all these fixed costs: the employees of RealProinvest take care of all the payments and give you an overall bill!