When buying or selling a property in Turkey, there is a standard property purchase tax of 4% of the property’s sales price. This tax must be paid to the Turkish tax authorities. However, in practice, this cost is typically split between the buyer and the seller, making each party responsible for paying 2% of the property’s value.

The property tax payment is essential for the transfer of ownership and should be completed at the time of title deed transfer (Tapu). It’s important for both buyers and sellers to be aware of this tax obligation during the transaction process.

Key Points:

• Total Tax: 4% of the property’s sales price.
• Split Responsibility: 2% for the buyer and 2% for the seller (commonly).
• The tax is payable during the property transfer process.

A title deed, or “Tapu” in Turkish, is a legal document that serves as proof of property ownership in Turkey. This essential document includes detailed information about the property, such as its location, the owner’s name, property type, and size. The title deed is a critical part of any real estate transaction and ensures the legal ownership rights of the individual or entity holding the deed.

In Turkey, ownership can be shared by multiple individuals without a limit on the number of owners. Additionally, all properties are freehold, meaning that after the titleholder’s death, the ownership rights automatically pass to their heirs. Alternatively, the property owner can leave the property to anyone through a legally binding will.

Key Points:

• Proof of Ownership: Confirms legal rights to a property.
• Details Provided: Location, owner, property type, and size.
• Shared Ownership: An unlimited number of people can share ownership of a single property.
• Freehold Property: Automatically inherited by family members or as designated in a will.

When purchasing property in Turkey, buyers should be prepared for several additional expenses that come before, during, and after the transaction. Understanding these costs helps ensure a smooth purchasing process and avoids financial surprises.

Here is a breakdown of the main expenses:

• Appraisal Report Fee (Real Estate Valuation): The valuation report is a mandatory requirement. It must be provided during the property purchase process.
• Title Deed Conveyance Costs (Property Tax): Property tax is 4% of the property’s sale price, and it is typically split equally between the buyer and the seller, with each party paying 2%.
• Lawyer Expenses: Although hiring a lawyer is optional, it is highly recommended for foreign buyers to ensure that all legal procedures are properly followed.
• Value Added Tax (VAT): VAT on property purchases in Turkey varies depending on the type of property. It can range from 1% to 20%, depending on factors such as property size, price, and location.
• Property and Earthquake Insurance (DASK): Earthquake insurance is mandatory in Turkey. While additional property insurance is optional, it is highly advised for further coverage.
• Utility Connection Fees: New owners are required to pay for electricity and water connection, which varies depending on the region and the provider.
• Furnishing Costs: Furnishing an unfurnished property is an optional expense and varies based on personal preference.
• Monthly Maintenance Fees: Commonly known as “aidat,” these fees cover the upkeep of shared facilities and services. The amount varies based on the amenities offered by the property.

The time it takes to complete a property purchase in Istanbul largely depends on the buyer’s decisions and the payment process. Once you’ve selected a property, the transaction follows these key steps:

• Put a Deposit on Your Selected Unit: After choosing the property, you will need to place a deposit to secure your unit.
• Receive the Reservation Form: Upon making the deposit, you’ll receive a reservation form confirming your intent to purchase the property.
• Send the Total Amount or Downpayment: On the agreed payment date, either transfer the full amount or make the required downpayment if you’re purchasing via installment plans.
• Get Your Sales/Notary Agreement: Once payment is made, the sales contract or notary agreement is signed, finalizing the legal commitment.
• Title Deed Office Appointment (for Cash Payments): If the property is paid in full, the next step is to schedule an appointment with the title deed office.
• Receive Your Title Deed: On the day of your appointment, the government will officially transfer ownership, and you will receive your title deed.

The entire process can take anywhere from a few days to a few weeks, depending on the project’s payment plan, the completion of paperwork, and title deed office availability.

To successfully purchase property in Turkey, you’ll need to prepare and present several key documents. Here’s what you will need:

1. Passport: A valid passport is essential for verifying your identity during the transaction.
2. Local Tax Number: You will need to obtain a Turkish tax number, which is necessary for property transactions. We can assist you in acquiring this.
3. Utility Bill from Your Home Country: A recent utility bill from your residence will be required to open a Turkish bank account, which is necessary for transferring funds.
4. Two Passport-Sized Photos: You’ll need two recent photographs measuring 3cm by 4cm for various documentation purposes throughout the purchase process.

By gathering these documents ahead of time, you can streamline your property buying process in Turkey.

The timeline for moving into your newly purchased home in Turkey primarily depends on the payment terms set by the developer. Here’s what you need to know:

1. Brand-New Apartments: If you purchase a brand-new apartment from a construction company, you are generally allowed to move in once you have paid at least 50% of the total price.
2. Full Payment: In some cases, developers may require the full payment to be completed before granting access to the property.

It’s essential to clarify these terms with the developer during the purchasing process to ensure a smooth transition into your new home.

When purchasing property in Turkey, it’s essential to be aware of the various taxes and legal fees involved in the transaction. Here’s a breakdown of the main costs:

1. Value Added Tax (VAT):
   • In Turkey, VAT rates for real estate are set at 1%, 10%, and 20%. The standard VAT rate for purchasing real estate is generally 20%.
   • Investors may qualify for a VAT exemption under specific conditions as outlined by law.
2. Title Deed Fee:
   • The title deed fee is 4% of the property’s sales price and is typically split between the Buyer and Seller.
   • The terms can vary; some sellers may require the Buyer to cover the entire fee, while others may agree to share the cost equally.
3. Additional Legal Fees:
   • While this does not include specific amounts, potential legal fees could arise from hiring a lawyer to assist with the property purchase process, including contract review and documentation preparation.

Being informed about these taxes and fees will help you plan your budget effectively and ensure a smoother purchasing experience.

Yes, a valuation report is generally required for property purchases in Turkey. This report is essential for foreign buyers to ensure that the property is fairly valued and eligible for the Turkish Citizenship by Investment program. Here are key points to consider:

1. Mandatory for Foreign Buyers:
   • All foreign buyers are required to obtain a valuation report when purchasing property, as it confirms the offical value of the property and verifies that it meets the minimum investment threshold for citizenship.
2. Exemption for Certain Purchases:
   • If the property is being purchased directly from a developer and that developer is a publicly listed company (GYO – Real Estate Investment Trust), the requirement for a valuation report may be waived. This is due to the developer’s established credibility and transparency in property pricing.

Having a valuation report is a crucial step in the property acquisition process, as it protects the interests of the buyer and ensures compliance with legal requirements.

For foreign investors looking to purchase property in Turkey, obtaining a valuation report is a legal requirement. The cost of the valuation report can vary significantly based on several factors, including the type of property being purchased.

1. Variable Costs:
   • The price of the valuation report will depend on the specific characteristics of the property, such as its size, location, and market value. Your real estate agent will provide you with detailed information about the estimated costs before the buying process begins.
2. Importance of the Valuation Report:
   • The valuation report is essential for confirming that the property meets the necessary financial thresholds for Turkish Citizenship by Investment and serves as a safeguard against overvaluation.

While the exact cost of the valuation report can fluctuate, understanding its importance and budgeting for this expense is crucial for a smooth property acquisition process.

When purchasing property in Turkey, a notary agreement is an essential step, particularly for non-Turkish speakers. Here’s a breakdown of the costs involved in the notary agreement and the transaction process:

1. Notary Fees:
   • The cost for notary services typically ranges around 1% of the total property price. This fee covers the preparation of the necessary documents and the legal formalities involved in the transaction.
2. Sworn Translator Costs:
   • If the buyer cannot read or write Turkish, a sworn translator is necessary to explain the terms and details of the title deed records. The translator’s fee for oral translation varies based on the specifics of the contract and the complexity of the transaction.
3. Power of Attorney (POA) Fees:
   • If the buyer wishes to authorize another person to handle the TAPU transaction on their behalf, a Power of Attorney must be prepared. This document can only be drafted by a Notary Public in Turkey, with fees ranging from 7,000₺ to 10,000₺, depending on the notary and the specifics of the POA.

These costs are essential considerations for foreign buyers navigating the property acquisition process in Turkey, ensuring that all legal requirements are met and that the transaction proceeds smoothly

Maintenance fees are an essential aspect of owning property in Turkey, particularly in residential complexes. These fees contribute to the upkeep of common areas, facilities, and services offered within the community. Here’s what you need to know:

1. Definition of Maintenance Fees:
   • Maintenance fees cover the costs associated with the maintenance and management of shared facilities and services in residential sites. This may include security, gardening, cleaning, pool maintenance, and other communal services.
2. Factors Affecting Maintenance Fees:
   • The rates for maintenance fees can vary significantly based on several factors:
     • Location: Properties in more affluent areas or those with extensive amenities may have higher fees.
     • Size of the Property: Larger homes typically incur higher maintenance costs, reflecting the increased usage of communal facilities.
     • Amenities Available: Properties with additional facilities, such as swimming pools, gyms, and recreational areas, may charge higher maintenance fees to cover their upkeep.
3. Typical Fee Range:
   • In Turkey, maintenance fees generally range from 1,000 TL to 5,000 TL per month, depending on the property’s location and amenities.

Understanding these fees is crucial for potential buyers, as they are part of the ongoing costs associated with property ownership in Turkey.

Acquiring a title deed is a crucial step in the property purchasing process in Turkey. Here’s what you need to know about obtaining your title deed appointment:

1. Appointment Timeline:
   • Typically, appointments at the government title deed office are scheduled within 15 days of application. However, this timeframe can vary based on the workload and busyness of the title deed office at that particular time.
2. Appointment Responsibility:
   • It is important to note that the appointment is usually arranged by the seller of the property. They are responsible for securing the date for the transfer of ownership.
3. Planning Your Visit:
   • Since the timing can fluctuate, it’s advisable for buyers to maintain close communication with the seller and their legal representatives to ensure a smooth transition to the title deed appointment.

Understanding this process helps ensure a timely acquisition of your property and reduces any potential delays in obtaining your title deed.

Yes, purchasing property in Turkey through an installment plan is a viable option, depending on the specific project you choose. Here’s what you need to know:

1. Availability of Installment Plans:
   • Many real estate projects in Turkey offer flexible payment plans that allow buyers to pay in installments. However, the availability of these plans varies by developer and project.
2. Understanding the Terms:
   • If the project has an installment option, it’s crucial to review the terms and conditions. This may include details such as the duration of the payment plan, the required down payment, and the interest rates if applicable.
3. Choosing the Right Project:
   • When considering an installment plan, take the time to explore different projects and developers. Some may provide more favorable payment terms than others, making it essential to find one that aligns with your financial goals.
4. Consultation:
   • Always consult with a real estate agent or lawyer familiar with Turkish property laws to ensure you understand your obligations and rights regarding the installment payment process.

This flexibility in payment options can make purchasing property in Turkey more accessible for many international investors.

If you earn rental income in Turkey, you are subject to a tax rate of 15% on your total annual income. Here’s a breakdown of what you need to know:

1. Tax Rate:
   • The tax on rental income is set at a flat rate of 15% of the total income received from renting out your property for the year.
2. Filing Requirements:
   • Property owners must report their rental income to the Turkish tax authorities annually. It’s important to keep accurate records of all rental income received throughout the year to ensure proper reporting.
3. Deductions:
   • You may be eligible for certain deductions related to property maintenance and management expenses, which can reduce your taxable income. It’s advisable to consult a tax professional to understand what expenses can be deducted.
4. Payment Deadline:
   • Ensure you are aware of the deadlines for filing your tax returns and making payments to avoid penalties.

Understanding your tax obligations as a rental property owner in Turkey is essential for effective financial planning and compliance with local laws.

When selling a property in Turkey, the applicable tax rate depends on how long you have owned the property:

1. No Tax After Five Years:
   • If you sell your property after five years from the purchase date, you are exempt from paying capital gains tax on the sale. This provides an incentive for long-term investment in real estate.
2. Tax for Sales Within Five Years:
   • If you decide to sell your property within five years, you will be liable to pay a profit tax. This tax is calculated based on the difference between the purchase price and the selling price.
   • The profit tax rate is typically around 20% of the profit you made from the sale.
3. Calculating the Profit:
   • To determine the profit, subtract the original purchase price (including any associated costs, such as legal fees) from the selling price. This figure represents your taxable gain.

Understanding these tax implications can help you make informed decisions about your property investment strategy in Turkey.