If you are planning to invest in Turkish real estate, it is vital to understand the additional costs following the selection of the property. Here is a detailed list of 7 essential steps and expenses:
- Title Deed Fee (Tapu Harcı): The most significant expense, calculated as 4% of the property’s declared value. While legally split between buyer and seller, it is customary in Turkey for the buyer to cover the full amount.
- Annual Property Tax: Paid to the local municipality. The amount varies based on the property’s location and specifications (typically 0.1% to 0.2% of the property value).
- Real Estate Agent Commission: For professional consultancy services, the legal commission is typically 3% + VAT of the purchase price.
- Compulsory Earthquake Insurance (DASK): Mandatory for activating utility subscriptions. Costs range from $50 to $100 annually, depending on the property’s size and age.
- Passport Translation & Notary Services: Foreigners must have their passports translated and notarized. Additionally, a sworn translator is required at the Land Registry office. This costs approximately $100 to $150.
- Utility Connections (Electricity, Water, Gas): After receiving the Title Deed, security deposits and connection fees for utilities will cost roughly $200 to $300.
- Foreign Exchange Document (DAB): Per current regulations, foreign buyers must exchange their currency (USD/EUR) into Turkish Lira via the Central Bank to obtain a “Foreign Exchange Document.” Related fees are around $100.
Conclusion: It is highly recommended to set aside an additional budget of 8% to 10% of the property value to cover these expenses and ensure a smooth transaction without financial surprises.