(Should you also put costs in Euros?)
Costs of buying property in Turkey
As a general guide, when you’re buying a property in Turkey, you should allow 8% on top of your purchase price for incidental costs such as:
1. Stamp duty (Turkey property buying tax) of 4.4%. As with UK property purchases, this is based on the assessed value of the property, which is generally around 60% of the purchase price. Assessed value is calculated by taking the value of the land attributable to the property and adding a construction element on top at cost.
2. Legal fees. Each region is different and your solicitor’s costs will also be based on how complicated your transaction is, and therefore how much your solicitor has to do to help it along. Generally you should assume that you will pay around £1,000 for typical conveyance transactions.
3. Agency fee which is dependent on which agent you use but is usually around 3%.
4. Other approval and paper-work expenses – allow around £500
Timing of payments
When you register the title deeds to your property, you will be expected to pay stamp duty. Therefore, when you buy off-plan, the stamp duty is payable on completion of construction.
Legal and agency fees are payable at the time of signing your purchase contract.
Cost comparisons (of what?!) to Spain, Italy and France?
Turkey (8% – 9%)
Spain (12% – 15%
Italy (13% – 20%)
France (14% – 18%)
These percentages exclude VAT (called KDV tax in Turkey). The main differences in the cost between Turkish real estate and the countries above are due to higher agency fees (up to 10% in Spain and France) and also purchase tax, up to 6% in Italy.
VAT on Turkish property
VAT of 1-18% (does it vary and if so, why?) is paid on Turkish real estate for luxury properties with net living space greater than 150sqm. VAT is not an incidental cost but forms part of the purchase price.