Buying a Property in Turkey

Admin | August 22nd, 2022

Steps for Property Acquisition in Turkey Explained

Buying a house in Turkey (Turkiye) may be a process that you are going through. From searching, comparing, selecting, acquiring to after-sale steps, the journey is a multi phased one. This post helps you understand the steps of the acquisition process. After you have selected a property and are ready to start the buying process, you will face the steps listed below:

Payments and taxation 

Payment to the property seller can be made through various channels such as bank transfers or cash payments. Payments can be made once or through agreed upon installments as mentioned in the contract. Payments also include taxes that are usually divided among the buyer and the seller as following:

Sale tax: Completely paid by seller and is up to 20% of the value of the property 

Tapu tax: The tax is issued by the land registry authority. It is 4% and is usually divided equally among the buyer and seller.

KDV (VAT) tax: The tax is paid by the buyer (unless the price offered by the seller includes the tax). It is between 1% to 18% depending on factors such as the location, size and type of house and its date of construction. Exemptions from the tax may apply according to the 6824 law to the best of our knowledge. This exemption is for individuals (foreigners or Turkish citizens) not residing in Turkiye.

Title Deed (Tapu) Registration:

The process of issuing a title deed is vital in proving that the property belongs to you. The title deed (Tapu) is issued from the land registry office known as Tapu müdürlüğü in Turkey, which is present in every province. The issuing of the Tapu certificate is only done after payment is made. The Tapu certificate is not issued from or to a foreigner until he clearly affirms his understanding of the content, a sworn translator should be present therefore if the foreign person does not speak Turkish. 

The following documents are required by the land registry office for registration 

• Title deed of the real estate or village/quarter, block, parcel, building and independent section info,
• Identity document or passport (Must be presented along with the translation when necessary and must be issued in a manner to indicate citizenship of the person),
• Real estate valuation report issued by one of the firms authorized for real estate valuation by CMB (Capital Market Board) (http://www.spk.gov.tr/SiteApps/SirketIletisim/List/gds),
• “Real Estate Current Market Value” issued by the relevant municipality,
• Compulsory earthquake insurance policy for buildings (house, workplace etc.),
• 1 photo is sought for the Statement of Identity Information Form for foreign real person,
• Sworn interpreter if any of the parties does not speak Turkish,
• If the procedure is done using a power of attorney issued abroad, original or certified copy of the power of attorney along with translation thereof.

After Sale: 

After buying the property, the following fees should be payed on a regular basis 

Municipality taxes (Belediye tax): 

Each municipality has its own tax on properties within its legal border. Property taxes are paid bianually directly to the municipality. Other taxes such as environment and cleaning tax comes with the water bill for houses, whereas it is paid separately for shops.

Maintenance fees: 

Monthly payments are made to the condominium or building's management as a maintenance fee (aidat in Turkish). Such fees cover electricity and maintenance bills of the building or condominium.

Income tax (If renting):

If you are planning to rent out your property after buying it, income taxes may apply to your rental income. Taxes are paid to the tax administration (vergi idaresi) and may be subject to exemptions based on the ammount of income.

We hope the information presented in our article was useful to us and you. Should you have any suggestions or inquiries about the content of the article feel free to contact us.

As a real estate company we look forward to help our customers in their journey to find the suitable property or investment. Feel free to visit Hikma Property office or contact us for your property inquiries. All the best in your journey!

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