How much will it cost to buy property in Turkey?
As you know, in Turkey, on every sale transaction pertaining to real estate, you are obliged to pay certain taxes. Naturally, these are payments that are to be made in addition to the sale price. These taxes and levies are one-time payments. However, the taxes mentioned here do not include annual levies which you may have to pay to the local municipality. In order to enable you to appreciate the tax liability on purchase or sale of real estate in Turkey, brief insight into the Turkish property tax for 2016 is provided here:
According to the law prevailing in Turkey, every property that you purchase requires army approval.But If any foreign national has purchase property in a same building before, army approval may not be necessary. In such cases, title deeds can be dlivered to you within two days from the date of purchase.
Once you receive the approval, then you will have to pay tax on the sale deed. This tax is called as ‘tapu’ title deed. The tax depends upon the value of the property. However, the minimum tax that is payable is 4 % of purchase cost . According to the amendment recently introduced, if the military clearance for the property in question has already been obtained, then for further sale transaction, military clearance will not be required.
On every sale transaction, you will have to pay VAT, which is normally a part and parcel of the purchase price. Remember, these are one-time payments.
Army approval fee:
This varies from city to city. Further, this tax is computed on the basis of Tapu paid on purchase tax. The maximum amount payable for army approval fee is 150 euros.
Every presale transaction contract which is also called as agreement requires authentication by the notary. For this purpose, the notary will be charging you 250 euros.
Every real estate transaction needs a thorough review by a qualified and experienced attorney. The attorney will scrutinize the documents and ensure there are no defective titles to the property. If you avail the services of a legal interpretor, you will have to pay service charges of about 40 euros. However, if you prefer to avail the services of a solicitor, then you will have to pay 1350 euros as service charges, If you avail the servcies of Key Properties then this service will be provided to you free of cost.
According to the law prevailing in Turkey, the real estate agent will be entitled to a commission of 3% to be computed on the sale price. This commission is payable only after the completion of sale transaction like signing the title deed and such other legal procedures.
Other taxes and levies:
In addition to these, there are other taxes and levies which the buyer will have to pay to the local municipality. These normally include property tax, earthquake insurance and municipality fee. These are annual payments. These taxes are in the range of 100 to 120 Euros, and differ from place to place. Other payments like electricity, gas and water depend on the usage.
What makes Key Property different from others?
It is quite simple; we always believe in transparency. We will never charge the clients with agency commission. We have a special contract with the owners of the property which entitles us to get our commission from the owner. So, we will not collect any agency commission from you. From the stage of entering into the purchase agreement until the stage of registration of the property in your name, our dedicated staff will make all the paper work. They ensure the entire sale transaction is hassle free. Our service will not end with this, we even undertake to manage and maintain your property. Our service is always continuous because we always value to strengthen our bonds with our clients.
We guide you in the right direction:
Yes, this is one of our business ethics. For example, many of our clients ask us how much extra will it cost over and above the purchase price to buy property in Turkey. The answer is quite simple; it is about 4 % above the purchase price. We will also give you the breakup of such extra payments. After purchasing the properties in Turkey, many of our clients ask us how to manage their dream property. We guide them at every stage like payment of taxes and levies, maintaining the surroundings of the property and so on. Our dedicated staff will provide you every help needed to effectively manage your property.
Investment in Turkey a better option:
Property value in Turkey is much less as compared to any other European country. In addition to this, even taxes and other levies are much lower in Turkey as compared to other European countries. Apart from that, even other accessories and utilities, such as the Furniture, electrical and electronic gadgets like hob, refrigerators, cost much less in Turkey. For example, essential furniture for a two bedroom house including dining table costs just around 2300 Euros! No wonder, it is because of these reasons, people from across the globe are looking at Turkey for investment in real estate.