Property Buying Cost In Turkey
We know it is difficult to buy a property abroad due to the legal and buying process involved. Don't worry, we are here to help you from the initial stage to the final stage of the buying process. There is initially a non-refundable £2,000 reservation fee required to reserve your luxury property for you.
Here are the costs and other taxes involved in buying a property in Turkey:
You will pay a 3% fee of the property price in Turkey.
Legal fees range between £800- £1000.
Stamp Duty, Property Tax in Turkey
Stamp duty to be paid is 4% of the property price In Turkey. Sometimes this is split between the buyer and the seller in 2% each. Most of the time the buyer pays the 4% fee.
Land Registry Office Registration Fee (Notary Office)
The fee charged at the Land Registry office in Turkey for every registration is about £30.
Government Tax For Military Checks in Turkey
This is about £100 fee to carry out checks on the property area zone. This will check whether your property is in a military zone in Turkey.
DASK - Earthquake Insurance in Turkey
This is a compulsory earthquake insurance whereby in the event of an earthquake you'll be insured. The fee is between £40 - £70.
This is a £30 - £60 fee for the translation of your passport and other documents.
You will need to pay around £100 - £200 for the setup of the following utility bills:
- 0.4% yearly municipality tax
- Communal service charges, for the maintenance of the communal area of a flat on a monthly basis
There are other property taxes in Turkey such as Capital Gains Tax and income rental tax paid on profits you generate from the sale of a property in Turkey as well as inheritance tax.
Capital Gains Tax
This is income profit from a property sale in Turkey. You'll be liable to pay between 15% - 35% taxes on the profit that you have generated from the sale of a property. If you buy a brand new home, you have 1 year where you pay no tax. After this 1 year period is over you will be liable to pay Capital Gains Tax if you sell the house within 5 years. If you hold on to the property for more than 5 years you'll be exempt from paying tax. If you sell your property in Turkey within 5 years of buying the property then you'll be liable to pay the following taxes.
Example Of Tax To Be Paid on Profits Generated from the sale of a property
Profits In Turkish Lire (TL)
- Less Than 6000 TL - No Tax To Pay
- 6000 - 7000 TL - 15%
- 7000 - 18,000 TL - 25%
- 18,000 - 40,000 TL - 27%
- Above 40,000 TL - 35%
Residents in Turkey are required to pay income tax in Turkey. This may include employment income, rental income or business income. The tax rates are between 15% - 30%. For example, if you own a holiday home and you rent it out during the summer periods, you'll be liable for Income Tax detailed on the example below. The same applies for investors who invest in Turkey and generate profit from their investments.
Example Of Rental Income Tax
Profits In Turkish Lire (TL)
- 0 - 10,000 TL - 15%
- 10,001 - 25,000 TL - 20%
- 25,001 - 58,000 TL - 27%
- 58,001 and above TL - 35%
Yearly Property and Land Tax
Once you've purchased your property or land in Turkey, you are expected to pay a yearly property and land tax in Turkey at the rate of between 0.1% and 0.6%.
The Inheritance Tax in Turkey as of 2016, stands at 2% of the value of inheritance. If you are Turkish or a foreigner married to a Turkish spouse you'll be subject to Turkish law. If you are a foreigner with no Turkish spouse you will be subject to your own country law.
Resident and Work Permits
Resident Permit in Turkey
If you want to stay in Turkey for more than the 90 days in the 180 days permitted for the tourist visa, then you need to apply for a resident permit. You can obtain one from this government link https://e-ikamet.goc.gov.tr/. Please follow the link directing you to the correct application form and apply. They do require documents which include a valid passport, 6 photos, and health insurance for under 65 years old or opt in for the government SGK scheme. If you are a family you need a marriage certificate to prove you're married. The above government link is translated into various different languages.
Work Permit in Turkey
First of all you can not apply for a work permit while you are in Turkey with a tourist visa in Turkey. The way to apply for a work permit in Turkey is that you first require a formal job offer or an employment contract in Turkey. You and your employer are the ones that need to apply for this together.
Work permits are only valid for 1 year at first. After this period ends it needs to be renewed at least 3 months before the expiry date and you will get a 2 year work permit afterwards. After the 2 year period ends you will get a 3 year work permit. Once you reach 8 years of employment you will qualify for an independent work permit.
If you have worked in Turkey for up to 5 years with no gaps you will qualify for an independent work permit whereby you can start your own business and be self-employed.
Driving, Bringing Cars and Pets
Driving In Turkey
You can drive in Turkey for up to 6 months with a foreign driving licence. After this period you will need to apply for a Turkish driving license (came into effect as of 2016).
Bringing Cars To Turkey
Cars imported into Turkey can only be in the country for up to 6 months and then you have to take it out of the country for another 6 months. This seems to be a lot of hassle for most people and so they end up buying a cheap car in Turkey.
Bringing Pets To Turkey
The type of pets allowed to be imported into Turkey are Cats and Dogs only. They need to be vaccinated. Documentation needed for entry for the pets into Turkey are as follows:
- Pet Owner's Passport
- Vaccination certificate approved by an accredited Vet or an up to date EU pet Passport
- A health certificate prepared by an accredited Vet issued no less than 15 days before travel
The conditions of travel are that you hold the above documentation and that the animals are in a healthy state to travel. The way to transport your pet into Turkey is by getting a pet transportation carrier from a pet transportation company which follows the airline regulations.