Taxes & Fees
Taxes and fees related to the purchase of a property in Turkey are considered low compared with other European countries. Al-Huda Real Estate Investment Company recommends all its clients to take into consideration an extra 5- 6% to the price of the property, which will guarantee the coverage of all the expenses and costs that should be paid after the purchase process. In other European countries this percentage amount can be 10% or even 20%.
Ownership taxes in Turkey are the same for Turkish citizens and foreigners. In brief, they can be classified as follow:
Title Deed Tax:
This kind of taxes is also known as property purchase taxes. It’s paid once for the governmental bank through the land registration office upon switching the property into your sole name and commencing the procedures related to the issuance of the ownership title.
The value of this tax is 4% of the estimated value of the property, and if you plan to buy from a project under construction, this amount will not be eligible until completion of this project.
Annual Property Tax:
When you own a property in Turkey, whether you are a foreigner or a Turkish citizen, you have to pay the annual property tax known as (EMLAK VERGESI). This tax should be paid to the local municipality at the beginning of each year. Its value can be estimated at 0.002% of the total value of property that appears on the title deed copy.
There are two kinds of property insurance in Turkey: Compulsory insurance and non-compulsory insurance. Known as DASK, compulsory insurance includes only insurance against natural disasters including earthquakes. This insurance is payable after switching the property into your name. Its value depends on the magnitude of the property and it is renewed at the beginning of each year.
Profit tax from capital:
If the property is sold within the first 5 years from the date of purchase, the profit tax shall be paid from the capital. It amounts to 35% of the difference in value between purchase and selling. If the property is sold after 5 years from the date of purchase, the seller is exempted from this tax by law.
There are expenses related to the use of water, electricity and gas. Other expenses related to the use of TV or internet are optional.
There are also some small monthly fees related to the services received from the management of the private housing complex such as: cleaning, maintenance and security