Buying property in Turkey is an attractive investment opportunity due to its competitive prices and high rental yields. However, beyond the property price, there are several hidden costs that buyers should be aware of to avoid unexpected expenses. Here’s a breakdown of the additional costs involved in purchasing real estate in Turkey.

1. Purchase Taxes and Legal Fees

• Title Deed Transfer Tax (TAPU Harcı): A 4% tax on the declared property value, usually split between buyer and seller.
• Notary and Translation Fees: Foreign buyers must have their documents translated and notarized, costing around €200 – €500.
• Lawyer Fees: While not mandatory, hiring a lawyer for legal checks can cost between €1,000 – €2,500.
• Stamp Duty: If the purchase involves a contract, stamp duty may apply, typically around 0.5% of the contract value.

2. Annual Property Taxes and Maintenance Fees

• Annual Property Tax: Between 0.2% – 0.6% of the property value, depending on location and property type.
• DASK (Earthquake Insurance): Compulsory earthquake insurance, costing between €50 – €200 per year.
• Site Management and Maintenance Fees: For properties in gated communities, maintenance fees range from €30 – €200 per month.

3. Utility Connection and Ongoing Bills

• Electricity and Water Registration: Initial setup fees range between €50 – €300.
• Monthly Utility Bills: Depending on consumption, expect to pay €50 – €150 per month for electricity, water, and heating.
• Internet and TV Subscriptions: Monthly costs vary between €10 – €30.

4. Residency and Citizenship-Related Costs

• Residence Permit Fees: If applying for a residence permit, costs vary between €50 – €200 per year.
• Turkish Citizenship by Investment: If investing $400,000+, expect additional processing fees of around €3,000 – €5,000.

5. Real Estate Agent and Mortgage Costs

• Agent Commission: Typically 2% – 3% of the property price, plus VAT.
• Mortgage Fees: If using a Turkish bank, mortgage processing fees range from 1% – 3% of the loan amount.

Final Thoughts

While Turkey’s real estate market offers excellent opportunities, being aware of these hidden costs ensures a smooth and well-planned investment. Budgeting for taxes, legal fees, maintenance, and utilities will help you avoid unexpected financial surprises.

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