Turkey is considered one of the most attractive destinations for foreign investors and buyers in the real estate market. However, the low expenses or fees associated with purchases remain one of the main reasons that drive many people to invest in this market. Nevertheless, buyers should be fully aware of the additional expenses resulting from legal procedures, in addition to taxes and service fees. This article addresses the most significant expenses expected to be incurred during the property purchase process in Turkey, making it essential to understand all financial aspects related to the process.
1. Property Valuation Report Fees
Before initiating the property transfer process (title deed), buyers must obtain a property valuation report. This report shows the market value of the property, ensuring the correct approach in the purchasing process. These fees are paid directly to the property valuation department in the land registry. The cost of property evaluation is one of the essential expenses that should be taken into account, as it is a mandatory requirement for foreign buyers under Turkish law.
2. Title Deed Transfer Fees
The title deed transfer fee is one of the important steps in the purchasing process, as the General Directorate of Land Registry and Cadastre is responsible for completing the ownership transfer process. These fees vary depending on the value of the property and are considered an integral part of real estate expenses. Therefore, it is essential to allocate a budget for these fees to ensure the process proceeds smoothly.
3. Annual Property Tax
An annual property tax is added to the real estate expenses, which is a financial obligation that property owners must adhere to. This tax ranges from 0.2% in urban municipalities to 0.1% in rural areas. For commercial properties, the tax rate is 0.4% in urban areas and 0.2% in rural areas. Buyers need to understand these tax standards to ensure they prepare a sustainable budget.
4. Property Setup Fees
Upon receiving the property for the first time, buyers encounter a series of fees related to setting up the property. These fees include charges for activating water, electricity, and gas services, as well as the internet service subscription bill. These fees are crucial to ensuring convenient and efficient services in the property, which directly impacts the quality of life.
5. Monthly Fees
Monthly fees refer to charges that are paid monthly by apartment or property owners to the management responsible for the complex or building. These fees vary depending on the type of service provided and the facilities of the building. It is important for buyers to be aware of these monthly fees, as they can significantly affect the overall budget of the owner.
6. Real Estate Agent Fees
When purchasing a resale property, real estate agent fees are a fundamental point that should be considered. Turkish laws stipulate that licensed real estate agents receive a commission of up to 2%, in addition to value-added tax fees. These fees are often paid by the buyer and are a vital part of the property purchasing cost.
Conclusion
Foreign investors' investment in the Turkish real estate market requires a comprehensive understanding of the fees and potential expenses associated with this process. It is essential for buyers to familiarize themselves with all the financial details before making a purchasing decision, enabling them to plan their finances effectively and maximize the benefit from their investment. A deep understanding of the purchasing aspects, including the required fees, will allow buyers to enhance their chances of acquiring properties that meet their needs and desires while also considering potential financial returns in the future.
14-02-2024 
