Purchasing a property in Istanbul...
Ongoing & Closing Costs...
The free hold title deed (TAPU) is an official document that shows you own a property completely. It is prepared on your own name and shows complete ownership rights in real estate in Istanbul or any place in Turkey. The document of free hold title deed shows your detailed information with full property details. It will be also officialized by your photo on it
Title deed expenses is 4% of the property value stated on the title deed. Sometimes some projects/developers offer to share the expenses equally. We advise you to contact our real estate consultants for the title deed expenses for specific projects.
A notary is person who is licensed by the government to approve documents and signatures for legal affairs. Your documents should be approved at the notary. You use the notary approved translation of your passport for opening a bank account, getting your tax number from tax office, getting your title deed or other legal issues.
The notary also approves the buying contract between the seller and the buyer. The fees for notary may change depending on the project itself and the volume of the documentation. As being your real estate consultant, we will be guiding you for your title deed expenses.
Value Added tax (VAT) is a kind of consumption tax. It is calculated on your purchasing price. Regarding the new regulation that published by Turkish Government, VAT can be calculated 1% or 18%. This VAT ratio changes according to your property registration date and the type of the property. Now with the new law, the VAT payment is 18% in all residential and commercial projects.
There is another tax called Stamp tax. It is required to be paid at the time legal document declaration. Each one of your contract or agreement should be declared to the Government’s Office. Stamp Tax is paid before property’s delivery. It is calculated 0,948% of your purchasing price for your declaration.
The owner pays annually property tax for ownership of a property. It is calculated referring the price of the property. It is approximately 0,1% and it is paid to municipalities every year.
VAT and Stamp Duty Tax are paid only once with the purchase of the real estate whereas the property tax is annual.
If you buy a property in Istanbul, there is a compulsory insurance that should be paid by anyone who buys a property in Istanbul. This is earthquake and natural disaster insurance (DASK). DASK is calculated regarding the size of your property and this amount may be between 40 TL-300 TL. When DASK is not paid, you will not be able to subscribe to household utilities like gas, water and electricity.
In addition, there are other expenses for your subscriptions. You pay deposit for your gas, water, electricity and telephone subscriptions. The deposit amount is only paid once at the subscription and it varies between 1.500-1.700 TL. The bills are calculated on your monthly usage.
Each property has a maintenance fee which is calculated according to the property type and the facilities of the complex. Maintenance fees are paid monthly.
In general, maintenance fee is between 1-2 USD per sqm. The owner pays the maintenance fee unless the owner rented the property. If there is a tenant for the property, the maintanence fee is paid by the tenant.