Other costs related to purchasing any estate in Turkey
There are costs which are related to estates’ purchasing in Turkey. These costs are separate from the agreed price of the estate’s purchasing whether you are an investor or you are purchaser who wants to buy an apartment in order to live permanently or only spend your holidays… you have to know these cost for they might be fees or taxes which can be divided into costs paid only once, costs paid annually and costs paid monthly.
- Costs paid only once:
* The tax of transferring a title deed or Tapu harci; when you purchase the estate in cash in Turkey, you will have a formal paper which prove that you are the owner of the estate and your name will be stated in this paper which is called in Turkish as “TAPU”. In case the purchase is in accordance with the instalment system, the handing of the title deed will be postponed until the final sum of installment is paid. However, the first title deed will be a prototype until the handing of the formal title deed.
* The tax of title deed’s transferring will be taken from the name of the founded company to the agent’s name; namely, about 4% of the purchasing price which is mentioned in the title deed. Some construction companies pay for the buyer, as a marketing technic, half of the price; namely, 2%; and the Buyer has to pay the remaining 2%. While other companies leave the whole cost to the buyer and this is quite normal in the companies which sell in very competitive prices.
* Solicitor’s fees or what is known as NOTER: some companies of construction; not all, register the contract with the solicitor in order to be totally formal which makes the agent more comfortable and secured, because the handing of the title deed will be postponed in case of selling in instalment until the last price has been paid. This is an extra procedure and its fees are written with the solicitor as 8% (eight in a thousand) out of the apartment’s price. The companies of construction often pay half of the cost; namely, 4% and the remaining cost will be paid by the agent. (See the following example).
Powers of Attorneys: companies of construction do the ready-made projects. It facilitates the procedures for its agents in the acts of transferring the title deed and the opening of subscription in water, electricity and natural gasoline companies. This is done through signing a power of attorney to the company so it can do the job instead the agent. Consequently, the costs of the power of attorney along with the solicitor and the sworn translator range from 140 to 200 $.
Besides, the companies of water, electricity and gasoline demand an insurance to start these subscriptions. These subscriptions can be repaid in case of cancelling the subscription; and this insurance does not exceed 700$ for all kinds of subscription.
- Costs paid annually:
The compulsory insurance of earthquakes which is known as DASK:
Each estate in Turkey has to get a compulsory insurance which guarantee the apartment and its contents out of earthquakes’ dangers. This insurance is renewed annually. However, the rate of the insurance’s interest is nominal which does not exceed 45$ a year for 1+1 apartments, 50$ for 1+2 apartments and 55$ for 1+3 apartments, because the projects which we offer are modern projects; in addition, they are based on anti-earthquake characteristics.
Building’s age, story and the project’s technical characteristics registered in the Municipality are taking into consideration.
Property’s tax: its cost is 1% (one in a thousand) of the apartment’s price, and it is paid annually by the bank account or by the Tax Department.
- Fees paid monthly:
Costs of building services: some call it maintenance fees while it is generally called Aidat in Turkey. It is a price paid by the resident (apartment, office, and store) monthly for the services of cleaning, maintenance and security during all periods of the day. It is also paid for building’s services as swimming pools and gymnastics holes etc.
This fee differs from one building to another in accordance with the quantity and quality of the building. It ranges from 0.57 to 1.5 $ for the m2 (see the following example). The fees of building services have compulsory characteristics which mean that these fees should be paid monthly even if the apartment is not inhabited. But, in case the apartment has been rented, the renter has to pay the fees.
|2+1||100 m||100.000 $|
|Costs paid only once|
|2,000 $||100.000 $ *2%||Tax of property transfer|
|400$||100.000$ *4%||Selling contract registration|
|840 $||140 $ +700$||Subscription Attorney|
|Costs paid annually|
|50 $ a year||Earthquake insurance|
|100 $ a year||1% *100,000 $||Property tax|