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What is the hidden costs of buying property in Istanbul ?

Posted by istare on June 10, 2024

Can you break down the hidden costs of buying property in Istanbul ?

Istanbul real estate market is attractive, but there can be surprise costs beyond the purchase price. Here’s a breakdown of hidden costs to consider:

Transaction Taxes:

Transfer Tax: While the elimination of VAT for foreigners on first-time purchases is a perk, a 4% transfer tax on the declared property value (often lower than the actual price) awaits. Be sure to factor this into your calculations. Remember, the declared value might not reflect the true market value, so factor in a potential buffer for a more realistic cost estimate.
Tapu Transfer Fee (around 1,900 TRY): This fee is paid to the Land Registry Office when transferring the property title deed to your name.
Land Registry Fees (around 600 TRY): These cover administrative costs associated with the title deed transfer.
Lawyer and Notary Fees: Fees vary depending on the complexity of the transaction, but expect to pay a few thousand Turkish Lira for legal representation and notary services.

Istanbul Apartments For Sale in Turkey What is the hidden costs of buying property in Istanbul ?

Beyond the Purchase:

Property Tax: Owning property in Istanbul comes with an annual property tax, typically around 0.2% of the declared value. While this might seem small, it’s an ongoing cost to consider in your long-term budget.
Aidat (Maintenance Fee): For apartment dwellers, the joy of shared amenities comes with a monthly maintenance fee, or Aidat. This fee covers upkeep of common areas like pools, elevators, and gardens. The cost can vary depending on the amenities offered and the size of the complex. Request a breakdown of the Aidat to understand the ongoing financial commitment.

Unforeseen Expenses:

Renovation Woes: The allure of a charming older property can mask hidden issues. Plumbing problems or outdated electrical wiring can necessitate renovations, adding a significant cost to your initial investment. Consider a professional inspection to uncover these potential issues before you finalize the purchase.

Financial Fluctuations:

Currency Exchange: Since property transactions are conducted in Turkish Lira, fluctuations in exchange rates can significantly impact the overall cost for foreign buyers. Factor in potential currency movements when establishing your budget to avoid last-minute surprises.

Hidden Utility Connections:

Connection Fees: While the cost of connecting utilities like water, electricity, and gas might seem insignificant, they can add up. Research the connection fees for your chosen area to get a clearer picture of the upfront investment.

Furnishing the Dream:

Furniture and Appliances: Unless you’re fortunate enough to snag a fully-furnished property, furnishing costs can be significant. Factor in the cost of outfitting the entire space, especially for larger properties. Consider second-hand options or renting furniture for a temporary solution.Also check our the best furniture places in Istanbul for your property article before buying furniture in Istanbul

By anticipating these hidden costs, you can make informed decisions and avoid financial strain down the line. Remember, a well-defined budget that considers all potential expenses will ensure a smoother and more successful Istanbul property purchase.