Property in Turkey: Maintenance, duties and taxes

When buying an apartment or house in another country, it’s definitely a good idea to study and potential issues and new obligations in advance. One should analyse the annual material costs of utilities and what they add up to, and if the property is going to be rented out, the owner should also carefully study the legislation.

When the costs of maintaining real estate in Turkey are considered in detail, it becomes clear that buying an apartment in this country is much cheaper than in many other countries in Europe, Fixed taxes and utility bills are much lower, but foreigners wishing to become owners of Turkish real estate must pay all necessary expenses independently and on time.

This article will talk about the most essential things anyone who owns Turkish property should know.

Annual taxes and fees

For non-residents of the country, absolutely equal conditions have been created for paying taxes, as well as for citizens of Turkey. There are no additional fees involved.

Property tax

The amount of real estate tax differs according to the type of property. Owners of an apartment or house located in the suburbs or provinces pay 0.1% per year; if the property is located in a large city, then the tax levy is 0.2%.

It should be understood that the amount of tax on an apartment will depend on the value of the apartment, which is indicated in the cadastral transaction. Usually, this price is much lower than what was paid. In general, apartment owners pay no more than €100 per year.

The tax is paid twice a year – at the end of May and at the end of November, or the entire amount can be paid right away to avoid worrying about forgetting to do it until the end of the next period.

There are two options for how to pay for everything: first, the owner can go to the local government office and present a certificate of ownership, at which point they will be given the necessary details and indicated the cost of payment; alternatively, one can pay the tax online by going to the city administration website.

Elite housing

At the beginning of this year a new tax on luxury housing was introduced into Turkish legislation. Owners of real estate, the total value of which is more than €500,000, must pay additional fees as follows:

• Housing worth €500,000-€780,000: 0.3%

• Housing worth €780,000-€1040,000: 0.6%

This tax can also be paid in equal amounts twice a year.

Cleaning of streets and garbage disposal

In addition to real estate tax, homeowners must pay separately for garbage collection and street cleaning. The amount for such services is determined for each city and region separately. In general, property owners can expect to pay from €10 to €50 per year.

Utilities

In this country, all services are paid based on useage. In addition to basic utilities, residents living in residential complexes must pay for the maintenance of the complex where some of the services are provided (pool, spa complex, hammam, gym). This fee is called aydat.

All owners of real estate in any residential complex is obliged to pay for the maintenance of the complex. The price includes cleaning of spas and pools, repair of elevators, as well as the work of gardeners and security guards. Each complex has its own set of services, and therefore the cost of the fee for each complex is different.

All residents of the complex get together every year to discuss the monthly fees for their complex, or a special committee is elected to decide these issues. On average, residents of the complex pay between €20 and €100.

Owners of apartments in ordinary city buildings without premium infrastructure pay from €5 to €10 per month.

Electricity

According to the latest data, the price of electricity in Turkey is among the cheapest in Europe.

Electricity is cheap, however, due to the heat in summer, residents almost constantly use air conditioning and because of this, electricity bills significantly increase. If one has an air conditioner on on a permanent basis, it’s common to pay between €40 and €70 per month. In this regard, many residents try to save electricity by buying energy-saving light bulbs.

Water

There is no traditional hot water supply in Turkey – boilers for heating water are installed in the apartments. Because of this, water in this country is even cheaper than electricity.

Commonly, one spends about €20 per month on water when living with family.

Gas

To save electricity, many residents install gas stoves in their apartments. Gas is not provided in all cities in Turkey. Residents have to buy gas cylinders, which cost €20-€30. One bottle is usually enough for several months for families with children.

Heating

Thanks to the warm climate, residents of Turkey do not need central heating. If there is such a need, then people install boilers in their apartments.

In most cases, residents of the southern regions use heated air conditioning during the winter, which helps to keep the apartments warm.

Insurance

Turkey is a seismically active zone. In some areas, earthquakes are frequent. In this regard, residents need to insure their homes in case of natural disasters. The cost of the Compulsory Earthquake Insurance ranges from €20 to €150 per year, depending on different conditions and places of residence.

Renting out an apartment

Turkey is a country with tourists visiting all year round, and as such, renting out apartments is one of the most popular ways to make money.

Apartment owners can receive from 3% to 5% per year by renting out an apartment long term. The exact percentage depends on the city and the characteristics of the property. After paying taxes and fees, in general, landlords earn up to 2% per year.

To officially rent out an apartment, the owners must certify the lease with a notary, as well as register the tenants in case of emergencies.

Property owners can receive 6-7% if they rent out an apartment for a short period during the tourist season. This difference is due to the fact that by renting an apartment for a short period of time, the owners can receive from €200 to €500 per week, and for the long term, the owners can receive from €200 to €400 per month.

When purchasing real estate in Turkey, it’s important to thoroughly explore all the obligations of the owner to pay taxes and utilities. Those wishing to rent out their property should also carefully study all legal documents and obligations.

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