How much will I need when buying Turkish real estate? Set aside money for purchase charges, such as a lawyer, notary, taxes, and other fees, in addition to the actual price of the property. The cost of services such as lawyers and interpreters varies depending on who you choose. Other official expenses are likewise in Turkish lira, and the amount in your native currency will fluctuate depending on current exchange rates. So, while the costs shown below are merely estimates, you should budget around 8.5% to cover all fees.
What is the cost of purchasing real estate in Turkey?
Use below as a guide and check the actual price of fees when you are about to purchase a property in Turkey.
The cost varies based on who you choose. This list from the UK government will assist you in finding an attorney who is experienced in purchasing real estate in Turkey.
Some interpreters charge by the hour, while others offer a pre-packaged bundle designed exclusively for property purchases. Please keep in mind that in Turkey, translators must be appropriately registered and licensed. Each district’s notary office has a list of certified translators.
3% of the total transaction price is usual to pay to an estate agent.
The tax on transfer deeds is 4%.
$100.00 Tapu Registration (Title Deeds).
Fees for notaries: $350.00
You must get this mandatory earthquake insurance when you sign your title papers. The square foot of your property determines the price. DASK for a 70-square-metre two-bedroom flat is around 375 lira per year.
A formal application is submitted to the government to ensure that the property you are purchasing is not located in a military zone and that you, as a foreigner, are purchasing assets within your legal bounds. Since August 2018, all foreign investments in Turkey are no longer subject to this tax.
Consider the following:
The table below depicts the one-time costs of buying a home in Turkey. The calculations shown here are based on a $100,000 house sale:
4,000 usd in purchase tax
3,000 usd for buyers’ fee
The fee for a lawyer is $1,000.
A fee of the Notary Public: $300
Gas & Electricity registration $200
What is your budget before you begin looking at properties?
Do not overstretch yourself financially. To begin, establish a list of all possible sources of funding. Are the funds readily available for your new property? Most overseas buyers who purchase property in Turkey use one or more of three sources: savings, inheritance, or re-mortgaging their UK home. Because house sales in Turkey are often swift, the entire process might take anywhere from 6 weeks to 3 months.
Mortgages in Turkey for foreigners
Turkish banks first offered foreigners mortgages in 2007. Naturally, terms and conditions differ per bank, but on average, 50 to 65% of the purchase price is covered by the bank, leaving the buyer to secure the remaining funds.
Even if you’re planning your budget in your native currency, keep in mind that the Turkish lira house index determines the property’s worth. Your property’s value will be determined in Turkish lira if you decide to sell it later. Currency exchange rates can fluctuate significantly over several years, so it’s good getting into the habit of monitoring the pace today to keep track of how your property investment is progressing.
What the currency conversion rate at the time of the money transfer is also essential. Since property acquisitions can cost thousands of pounds, even a small fluctuation in the exchange rate can make or break a deal. There are several currency convertor companies who are international payment specialist that can assist you in saving money by obtaining the best rate and avoiding the excessive transfer costs charged by banks.