Property Taxes & Costs When Buying in Istanbul: Explained Simply
Buying property in Istanbul can be an exciting investment or the first step toward a new life in Turkey. But before you sign anything, it's important to understand the full picture of costs—including taxes, fees, and ongoing expenses. The good news? Compared to many Western countries, property-related costs in Turkey are relatively affordable.
In this guide, we’ll break down everything you need to know about property taxes and costs in Istanbul—explained simply.
1. Purchase (Transfer) Tax
What it is:
This is the main government tax when transferring a property title from seller to buyer.
How much:
4% of the property’s declared value, usually split 2% buyer / 2% seller—though in practice, the buyer often pays the full amount.
Example:
For a property valued at 3,000,000 TL, the transfer tax would be 120,000 TL.
2. Title Deed (Tapu) Fees
This includes small administrative costs for registering the property with the Land Registry Office (Tapu Office).
How much:
Usually a few hundred TL, depending on location and property value.
3. Notary Fees (if needed)
If you're buying off-plan (new construction) or want a Power of Attorney for someone to act on your behalf, you may need notary services.
How much:
Power of Attorney: ~1,000–2,000 TL
Notarized translations: ~500–1,500 TL (if needed)
4. Appraisal Report Fee (Ekspertiz Raporu)
Foreign buyers are required to get an independent valuation report from a certified appraiser before purchasing.
How much:
~3,000–5,000 TL, depending on the property type and location.
5. Real Estate Agent Commission
Most agents charge a commission fee of 2–3% of the sale price, typically paid by the buyer.
Example:
For a 3,000,000 TL property, that’s around 60,000–90,000 TL.
6. VAT (KDV) – Sometimes
Most resale properties are exempt from VAT. However, brand-new properties from developers may carry 1% to 18% VAT, depending on the size and usage type.
First-time foreign buyers purchasing a new property and paying in foreign currency may be exempt from VAT—if they agree not to sell for one year.
7. Annual Property Tax
Once you're a property owner, you’ll pay an annual property tax.
How much:
0.2% of the property’s government-declared value for residential units in metropolitan cities like Istanbul.
Paid in two installments—May and November.
Example:
If your property’s declared value is 1,500,000 TL, annual tax = 3,000 TL.
8. DASK (Earthquake Insurance)
This is mandatory insurance for all properties in Turkey. It covers earthquake-related structural damage.
How much:
Usually 500–2,000 TL per year, depending on the size and location.
Optional private home insurance can be added on top.
9. Utility Connection Fees
When setting up electricity, water, and natural gas accounts, you’ll pay small connection or deposit fees.
How much:
Typically 2,000–5,000 TL total, depending on services and usage.
Tips for Buyers
Negotiate agent fees—especially for higher-value properties.
Work with a licensed lawyer to review contracts and protect your rights.
Always get the appraisal report early—it’s now required for foreigners before sale.
Pay attention to the “declared value”—this is what taxes are based on, not the market value.
Keep receipts for all payments, especially during the buying process.
Final Thoughts
Buying a home in Istanbul is more straightforward than you might think, especially when you understand the full scope of costs and taxes. While there are a few fees involved, the process is transparent, and ownership rights are well protected under Turkish law.
With beautiful homes, a growing economy, and cultural richness, Istanbul remains a strong and appealing choice for property buyers—from retirees to investors.
