Fees and taxes to be paid when buying a property in Turkey


Some investors believe that once the price of the property is paid, he has paid all the fees and expenses that he must pay, and when he begins the procedures for transferring the title deed, he is surprised by the expenses, fees and taxes that he has to pay. Therefore, Acuad Company wanted to provide you in this article the information that you should know about the taxes to be paid when purchasing any property. Real estate in Turkey.

The important thing that we must assure you is that there is no difference between a foreigner and a Turkish in paying the taxes imposed on the property, and there are no additional taxes on foreigners when buying, transferring, or selling the property pays more than the Turkish citizen.

Let's get acquainted together with the types of taxes and fees to be paid after the completion of the purchase process:
There are one-time taxes, annual taxes, and monthly expenses.

Let's start with one-time taxes:

1- Value Added Tax (KDV):
The value of this tax varies according to the type of property, its area, and the price per square meter of the land on which the property is located. It is calculated from the net area of ​​the property and ranges between 1 to 18%, according to the following:

Residential apartments with a net area of ​​more than 150 square meters, the value added tax shall be 18% of the value registered for selling the property in the Sukuk Department.

Residential apartments with a net area of ​​less than 150 square meters, the value added tax is 1% of the value registered for selling the property in the Sukuk Department.

The Turkish government recently issued a decision exempting foreigners from value-added tax on the first property registered in the name of the foreigner and the absence of a previous residence for them in Turkey, provided that they have transferred the amount of the property in dollars from outside Turkey


2- Property registration tax (transfer of title):
After the person purchases the property, he must register the title deed in his name to protect and confirm his right to the property. This tax is imposed when registering title deeds, that is, when registering the title deed in the Real Estate Registry Department in Turkey
The value of this tax is 4% of the value of the property registered in the sales contract, to be paid equally between the seller and the buyer.
It is also obligated to pay it to the legal heirs when transferring ownership of the property to them from the bequeathed as part of the ownership transfer procedures.
In addition to the real estate appraisal fee, it is approximately 1500 TL
In addition to fees to be paid in the Tapu Department, such as transaction fees, fees for the sworn translator, and notarization fees.

Annual property taxes that are paid once a year:
1- Real estate ownership tax in Turkey: Turkish municipalities impose annual fees on properties established within the area under the municipality’s service, approximately (0.22%) of the value of the property registered in the title deed. For example, if we say that a property is worth 100,000 Turkish liras, the tax is approximately 220 liras Almost Turkish, and this tax is paid for the services carried out by the municipality in the region, such as cleaning and caring for gardens and trees, and lighting roads ....
2- Annual insurance policy against earthquakes and natural disasters: an annual tax paid by the property owner to insure his home against earthquakes and natural disasters, and its value varies according to the area, height, region and age of the property. The residential property in which the property is located is called (revenues), and these returns are considered in return for the services provided by the residential complex, such as playgrounds, swimming pools and gardens, in addition to salaries for cleaning and maintenance workers, and security and guard staff.
Electricity and water fees in Turkey: These fees are of two types. Insurance fees and monthly bills. Insurance fees: It is a one-time meter registration fee that is paid when registering the electricity or water meter in the name of the owner or (the tenant also when transferring it to him) paid when submitting an application to open the meter in the Electricity Directorate or Water near the residential area and this insurance can be retrieved when the meter is closed
Monthly bills: These are fees paid monthly for the use of water and electricity, and they vary according to the exchange, where each segment of the exchange has its own price.

We must remind you that whoever is late in paying the tax will incur a fine for each time he is late in paying it.


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