In Turkey, taxes on real estate are very low compared to most European countries. As Buy Homes Istanbul team, we recommend that you add 5-6% additional payment difference in total to the sales price of the real estate you are going to buy. This includes all taxes, additional expenditures and expenses which may arise during buying process. This rate corresponds to 10-20% in many countries.
Tax rates are the same for Turkish citizens and foreigners in Turkey. Tax expenditures arising during and after buying real estate are:
It is 4% of the declared value of the real estate shown on the title deed which is paid to the Title Deeds Office while having the title deed registered in your name. You cannot have the title deed registered in your name without paying this tax. If you are buying a flat from an incomplete project, you will pay this tax when the flats are completed as you cannot get title deed before the flat is completed. Most of the companies which sell flats from projects either share this tax or pay it themselves.
There are two types of real estate insurances in Turkey; compulsory and non-compulsory. Compulsory insurance is the compulsory earthquake insurance (DASK) that each flat should have. It should be issued when the flat is bought and renewed annually. The price varies according to the flat’s size and it is not a big amount. Within the scope of non-compulsory insurance, you may have private insurance by an insurance company if you wish.
In accordance with the laws of the Republic of Turkey, it is the tax that you pay as 35% of the increase in the value of the flat if you sell your flat within 5 years after you bought it. If you sell your flats after 5 years, you will be exempted from this tax and you will pay no tax based on increase in value.
It is the tax that you pay to the municipality in the rate of 0.002% of the declared value of the real estate shown on the title deed. It is called as Real Estate Tax and it is a small amount that should be paid each year.
There are one time only deposit payments for electricity, water and natural gas subscriptions. Internet and TV utilities are optional. If you have a flat in a housing estate, you would pay a monthly amount to the management for security, cleaning and maintenance.