Costs of Purchasing a Property in Turkey
Logically, one of the things that our clients ask the most, is how much it will cost to buy a property in Turkey, except the purchase price of the property. Home2Turkey will help to calculate all costs that are involved with purchasing your home away from home or if your purchase is an investment.
In general, we advise our clients to calculate 4 – 8 % of the purchase price to cover different expenses, these expenses are one-off costs.
- Stamp Duty, “the buying tax”, is 4,4 % of the assessed value (tax value / declared amount) of the property. On average, 50 – 60 % of the actual market value is accepted as reasonable when talking about the assessed value by the Turkish tax authorities. When buying off-plan the stamp duty is paid upon completion. This cost is normally paid solely by the buyer, but in some cases, it is shared between both the seller and buyer.
- Legal fees will vary from time to time due to the complexity of the property purchase, but the lawyer will normally charge between 1.200 € – 1.800 €, depending on the services wanted as well as the complexity.
In addition to the stamp duty and the legal fees, there are some miscellaneous paperwork and other approvals that normally amounts to around 500 €.
Since 2017 foreign buyers no longer must pay VAT (value added tax) on their first home in Turkey. The condition is that the purchase is made with foreign currency and that the property is owned for at least 12 months.
Taxes on owning property in Turkey
- Annual property tax. The annual property tax is typically between 0,6 % and 1 % of the assessed value (not market value)
- Capital gain tax from the sale of real estate. The capital gain is the profit made when your property is sold and based on the assessed value, which is declared. The rates range from 15 % – 35 % depending on the profit made. If you have owned the property for 5 or more years, the capital gain tax is 0 %.
- Income tax on property, rental income. The rental income that is generated after deducted expenses is the taxable amount. The net income is taxed between 15 % – 35 %.