Taxes and overall fees related to buying a property in Turkey are considered low when comparing to other Europe countries like Spain or France. We advise all our clients to consider 5% – 6% to be added on top of their property purchase price to cover all expenses and additional costs after the sales process, where in other countries this percentage can reach 10-20% as extra fees and charges. All property tax rates are the same for Turkish nationals and foreign residents, and basically they can be classified into the following main sectors:
Title Deed Tax
Also Known as Property buying tax, it is only paid one time to the Turkish government bank via the land registry office when registering the house in your name and start issuing the title deed of your house. This amount is 4% of the assessed value of the property, and if you are buying from under construction project this amount will not be payable until the completion of the project .
Yearly property tax
Once you own the property, whether you are a foreigner or Turkish citizen, there is a yearly property tax ’emlak vergesi’ that must be paid to the local municipality, which equals 0.002% of the property value on the Title deed copy.
In Turkey there are two types of property insurance: compulsory and non-compulsory. Compulsory insurance consists only of earthquake (or disaster) insurance, known as DASK. This amount has to be paid after registering the property with your name. The amount depends on the size of the property, and it is renewed every year.
Capital gains tax
Capital gains tax must be paid when the property is sold if you sell within the first 5 years of purchase. It is calculated as 35% of the difference between the present value of the property and its value when last sold. If any property is sold after 5 years from purchase date, by law you are tax free and this tax is not payable.
Related to water, electricity and gas subscriptions that have to be paid once, in addition to other expenses related to Internet and television which are totally optional. Also some small dues must be paid monthly for cleaning, security, and building maintenance services for the housing complex. This amount can be determined by the management of the complex after the delivery of the project.