Cost of buying a property in Turkey in 2023
Cost of buying a property in Turkey in 2023.When considering buying property in Turkey, one of the most common questions that arises is: “How much will it cost beyond the purchase price?” Budgeting accurately for these additional expenses is crucial for a seamless property buying experience. We often advise our clients to set aside approximately 7 to 8 percent of their property’s purchase price to cover these one-off costs. It’s essential to remember that these costs are incurred just once, unlike ongoing property ownership expenses like property taxes and maintenance fees, which are notably lower in Turkey compared to many other European countries.
To illustrate, let’s delve into a hypothetical scenario. Imagine you’re purchasing a property in Turkey valued at 200,000 USD. In such a case, your additional costs would amount to approximately 16,000 USD on top of the purchase price.
Latest cost of buying a property in Turkey in 2023
- Stamp Duty in Turkey
Stamp duty, also known as the Turkey property buying tax, typically accounts for 4% of the assessed value of the property. This assessed value usually equates to around 60% of the property’s purchase price. Stamp duty becomes payable when the property title deed is registered in your name. If you’re investing in an off-plan property in Turkey, you won’t need to concern yourself with this payment until the construction is completed.
It’s essential to understand the concept of assessed value, which is also known as the declaration amount of a property. In Turkey, under-declaration is relatively common. To address this, tax authorities employ a method to assess the reasonableness of property declarations. On average, they accept 50-60% of the actual market value as reasonable.
- Solicitor / Legal Fees in Turkey
Hiring a real estate solicitor in Turkey is a prudent move, and the associated fees typically range between £1,000 and £1,500 (approximately 1,300 USD – 1,900 USD). However, these fees can vary based on the complexity of the transaction and property purchase. Legal fees become due upon the signing of your property purchase contract.
Investing in a solicitor’s services is highly recommended, as it provides you with complete security in your purchase. In nearly all cases where buyers have fallen victim to scams, they had omitted this crucial step.
- Agency Fee (Buyer Fee)
A standard 2% agency fee is customary in Turkey. Be cautious of companies that attempt to charge you a higher fee. Likewise, exercise caution when dealing with firms that charge less. While lower fees may appear favorable initially, agencies typically recover this fee from the developer, who, in turn, passes it on to you as part of your property purchase.
At Buy Property Turkey, we adhere to the standard 2% fee for our assistance in your property search, ensuring transparency and fairness. Agency fees are typically paid upon the signing of your property purchase contract.
- Other Approvals and Paperwork
Miscellaneous paperwork and various approvals related to the property purchase process in Turkey usually amount to approximately 600 USD.
When comparing the costs associated with buying property in Turkey to those in other European nations such as Spain, Italy, and France, it becomes evident that Turkey offers a notably affordable option. In these European countries, additional fees can range from 12% to 22%, significantly higher than what you’ll encounter in Turkey. This affordability makes investing in Turkish real estate an attractive proposition for many, whether they seek holiday homes, retirement residences, or simply a life bathed in sunshine.
VAT Exemption for Foreign Buyers
It’s important to note that since 2017, foreign buyers are no longer subject to value-added tax (VAT) on their first home purchase in Turkey. This exemption is contingent on the property being acquired with foreign currency and not being sold for at least 12 months after the purchase. This VAT exemption has further enhanced Turkey’s appeal as a destination for international property buyers.
In conclusion, understanding the costs associated with buying property in Turkey is essential for a well-informed investment decision. By budgeting for these one-off expenses and taking advantage of favorable policies such as the VAT exemption, you can embark on your Turkish property journey with confidence, knowing that you’re making a smart investment in a land of opportunity and affordability.
