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Property Ownership

The costs of owning a property in Turkey differ depending on the type and size of the property, the location, and other individual circumstances. However, as a general guide, owners should bear in mind the following:

• Property tax: this is a yearly tax on real estate in Turkey and is approximately 0.1% of the annual evaluation of the property.
  
  
• Personal income tax: this is based on capital gains and rental income and is levied at a rate of 20% for companies and 15 – 30% for individuals. If the property is sold within five years of ownership, the personal income tax will apply on the difference between the price of acquisition (adjusted for inflation) and the selling price.
  
  
• Turkish income tax law exempts a partial amount of rental income annually. For the year 2007, residential rental income up to approximately €900 is exempted from income tax.
  
  
• Government tax: this is levied at approximately €200 and is a one-off payment.
  
  
• Capital gains tax: there is no capital gains tax for individuals who have owned a property in Turkey for more than one year.
  
  
• Insurance: there is a compulsory earthquake insurance (‘DASK’) that must be taken out on all properties in Turkey. The amount of this annual insurance will vary between approximately €80 and €280, depending on the property and its location.
  
  
• Property management – if the Turkish property is to be rented out, the owner may choose to employ a property management company at an approximate monthly cost of between €20 to €40 (plus VAT) for an apartment.
  
  
• Additional costs: these include charges for electricity, water, and refuse collection. In Turkey you can expect to be charged approximately €60 to €100 to register the transfer of electricity and between €95 and €160 to register the transfer of water. These costs are sometimes included in the lawyers’ charges.
  

Related items

Documents and Reports

	Turkey property investment report (551Kb)
	Turkey country guide (999Kb)
	Turkey property buying guide (871Kb)
Documents and Reports

Other related pages

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