Expenses of Property
Expenses of Property Purchase in Turkey
Costs associated with villas for sale in Turkey or apartments are not just about the property’s market value. There are costs associated with the conveyance deed, land, water and electricity, broker commission, notary fees and more.
Title deed conveyance is transferred by Public Notary. In Turkey, the property registration and title deed conveyance is transferred by Land Registry and Cadastre Directorate. Known as Tapu ve Kadastro Genel Müdürlüğü. Public Notary in Turkey, the deed costs 4% of declared property value. According to the law, the seller incurs 2% of the cost and buyers 2% of the conveyance tax.
Electricity costs depend on on house to another. The cost is generally USD 125 to 300. If the transfer of the abonnement in a new name takes place, the cost varied between USD 20 and 50 as a deposit. Energy per KWH costs need to be taken into account. Water costs are around USD 150 for the first time connection. If the transfer of the abonnement on behalf of a new name is done, the fee paid is USD 40. One cubic meter of water generally costs USD 1. Land line connection costs USD 5. It’s cost is USD 0.04 per unit. Monthly fees can vary from one type to another. Landline is only registered if there is a residence permit.
Fixed and Variable Costs Total sales tax including that of buyer and seller is around 4 percent. This is a variable cost, while broker’s commission fee is generally around 3%. Apart from these variable costs, the fixed costs include earthquake insurance of around 200 Turkish lira, title deed delivery fee of 185 TL. Notary fees for power of attorney include 600 TL while electricity and water subscription deposits and fees add up to 800 TL. After sales cost, electricity and water registration incurs a cost of 800 TL.
Annual Property Tax.
0.1 percent of the declared property value is yearly tax. The tax needs to be paid to the municipality between February and May. Lawyers charge around 1% of the purchase price of the property and minimum of 1,200 Euro + 18 percent VAT.
Thus, from insurance to professional fees, there are a lot of costs associated with properties. Efficient management of resources is therefore a must.