Additional costs

Additional costs

Additional costs

Turkish property market is one of the fastest growing property markets in Europe. The most important factors for this include political and economic stability of the country, the simple and secure purchase process, steady value increase of real estate and, of course, very low purchase additional costs.

Non - recurrent costs:
Land transfer tax:	3.3% of the public, taxable value of the real estate. Current value is determined by the municipality.
Administration costs (Land Registry Office):	200,00 – 250,00 EUR.
Certified translator	50,00 EUR. This is mandatory
Notary fees (attorney):	ca. 50.00 – 70.00 EURO. The attorney is required to arrange all the formalities for the necessary routine applications, such as water and electricity, on behalf of the buyer.
Registration of electricity and water (First time):	approx. 150.00 EURO for each service according to connected municipality and type of the real estate.
Current re-registration (name change):	from about 40.00 EURO depending on the connected community and type of property.
Water re-registration (name change):	from about 35.00 EURO depending on the connected community and type of property.
Residential space proof (ISKAN):	Necessary only for new build property approx. 700.00 EURO depending on connected municipality and type of property.
Agency fees	3% of the purchase price. (Only resale property).

Annual costs:
Annual property tax:	0.1% residential building. 0.2% business premises. 0.1% undeveloped land. 0.3% build-up land. The public, taxable value of the property.

General information according to tax law:

Property tax in Turkey includes two modes, namely, the building tax and land tax revenues that accrue in the communities. Property owners need to quantify the value of the property every 4 years again. The minimum value per square meter, fixed by the Government, mustn’t be exceeded. The land tax and building tax is paid annually in two equal instalments. The first instalment is paid between March-May and the second one - in November.

Value added tax (18%) concerns only the sale of commercial and industrial enterprises and the land. Between Turkey and the European Union exists an agreement on avoidance of double taxation, concerning the income tax and wealth tax. As well as international customary, also in Turkey the taxes are variable between restricted and unrestricted tax liability. Foreigners, who are not constant residents of Turkey, are only limited taxable. This signifies only to his income in Turkey for example, rental income.

Currency / Payment:
The Investment Law guarantees the free transfer of income and transfer foreign sales revenue.