How much will be my expenses?
When purchasing a property be sure you make all the payment transactions via bank to the official accounts of the Developer with the exact specification of the property
Its cost varies from 1.500 TL to 3.000 TL
The General Directorate of the Land Registry and Cadastre prescribes that you pay an amount of 4% from the official cost of the property you buy.
Though not always, but It is a common practice to go halves with the Developer if a property is a first market one. Other fees and duties amount to approximately 1000 TL. All official receipts are provided for each of the payment.
8% on residental property and 18% on commercial ones. However, Turkish Republic Government offers a great opportunity for foreign investors in this regards.
If you prove that you have not been residing in Turkey for six months a year and hold no residence permit, you get a Tax Exemption Certificate. With a valid POA of yours we comfortably accomplish this process within two business days on your behalf.
You may consider this expense as 250-350 TL for properties the size up to 100 sqm. This compulsory ensurance is called DASK and its coverage is minimal but valid in case of any natural calamity. You may also ask for additional insurances as well, i.e: fire, robbery, etc.
Except the cost of the official application a lawyer asks about 2.000$ for you and for your partner and $ 250 for each child + %18 VAT.
A deposit system alongside one-off connection fee for such subscription is introduced in Turkey. Any user once subscribing pays a deposit and claims for refund signing out or selling a property.
The total expense for natural gas , electricity and water abonnements will not exceed 1500 TL. Slight variation depending on the district may occur.
Owning a property in Turkey is subject to property annual tax payment. The rate is absolutely low and therefore property owning is not a burden to the landlord at all. Depending on the specification division, commercial and residential properties’ taxes are being paid to local Municipalities accordingly, i.e.metropolitan properties – 0,2%/year, rural area properties -0,1%, metropolitan commercials – 0,4%, rural commercials – 0,2%.
A Capital Gain Tax is paid when any immovable asset is resold earlier than 5 years since its purchase. The rate of it varies from 15% to 35% depending on the gain received. However, if you own your home over 5 years, you do not need to pay the tax on the profit gained.
For further expanded information and assistance on any of the legal matters in Turkey please get in touch.