Property Taxes and Fees in Turkey: What Buyers Need to Know
Property Taxes and Fees in Turkey: A Clear Guide for Buyers
Buying a property in Turkey involves more than just paying the purchase price. There are mandatory taxes, state fees, annual obligations, and optional costs that every homeowner should know before signing a contract.
1. One-Time Purchase Costs
Property Transfer Tax (Tapu Harcı)
This is the main tax due when ownership is legally transferred at the land registry office (Tapu).
- Standard rate: 4% of the declared property value.
- Usually paid by the buyer.
Registration and Administrative Fees
Small fees apply for title registration and administrative costs:
- Land Registry registration fees
- Notary fees if powers of attorney are used
- Translation and official document fees for foreigners
Value Added Tax (VAT / KDV)
VAT may apply on new properties, but usually not on resale homes:
- Residential properties — often 1–8%, depending on size/price thresholds.
- Commercial properties — up to 18%.
- Foreign buyers may qualify for VAT exemptions under certain conditions.
2. Annual Ownership Taxes
Property Tax (Emlak Vergisi)
Homeowners pay this tax yearly to the local municipality:
- Residential: around 0.1–0.2% of the assessed value.
- Commercial: usually 0.2–0.3%.
- Paid in two installments each year.
Environmental Cleaning Tax
Some municipalities charge a small environmental cleaning tax alongside property tax; this is generally minor.
DASK (Mandatory Earthquake Insurance)
All property owners in Turkey must have DASK insurance. Premiums depend on property size and location and are paid annually.
3. Other Common Costs
Real Estate Agent Commission
Agent fees often range from 2–5% of the property price + VAT, usually paid by the buyer but negotiable.
Legal and Notary Costs
Legal support includes contract review, title checks, and transaction assistance. Costs typically 1–2% of property price.
Utility Registration
Connecting electricity, water, and gas typically incurs small fees, often a few thousand Turkish lira, especially for new buildings.
4. Example Calculation
For a property with a cadastral value of 3,000,000 TRY:
- Tapu Harcı (4%) ≈ 120,000 TRY
- Annual property tax (0.1–0.2%) ≈ 3,000–6,000 TRY per year
- DASK insurance — annual premium varies
- Additional costs: agent fees, legal fees, utility registration
Conclusion
Property taxes and fees in Turkey are transparent and standardized. The main one-time cost is the 4% title deed tax, followed by annual property tax and mandatory DASK insurance. Other costs like agent commissions, legal support, and utility connections should be budgeted to avoid surprises.
