The maintenance of real estate in Turkey costs foreign investors far less than in European resort countries, such as Spain or Italy. The amount of taxation and utilities are relatively small when buying a home, and there are simplified options for obtaining Turkish citizenship. It is important to be aware of the expenses involved before you make a move. If you are planning to buy a property in Turkey, read this material to gain an understanding of the cost of maintaining an apartment in Turkey before it surprises you.
Contents:
- Regular taxes and fees
- Utilities
- Communication services
- Insurance
- Example of calculation of taxes and payments
- Rental of real estate in Turkey
- Cost of living in Turkey
Regular taxes and fees
In the Republic of Turkey, it does not matter whether the homeowner is a citizen of the country or not. For foreigners living here, the requirements for paying taxes are equal to those for indigenous residents.
Property taxes
«Emlak vergisi» is the Turkish name for property tax, the amount of which depends on the type of real estate. The amount of tax will vary for housing, commercial property and land.
| Type of property | Tax amount |
|---|---|
| Housing - apartments, houses |
0.1% – provincial 0.2% – in large cities |
| Commercial facilities – offices, warehouses, shops, etc. |
0.2% – provincial 0.4% – in large cities |
| Land without a building permit |
0.1% – provincial 0.2% – in large cities |
| Land plot with a construction permit issued |
0.3% – provincial 0.6% – in large cities |
A note to the future owners of Turkish housing: the listed tax rates are calculated on the cadastral value indicated in the TAPU (Turkish certificate of ownership). According to practice, this is usually less than the actual price. Therefore, you will not have to pay as much as it appears at first glance. This is usually around 100 € per year, even for a resort option. For instance, for a 1+1 apartment in Alanya, the payment will be 100 € or less.
This fee is paid in installments, twice a year, no later than May 31 and November 30. A one-time contribution is allowed at the discretion of the owner. To make the next payment, all you need to do is visit the district administration («Belediye») and present a TAPU. Then, the owner will receive details indicating the amount needing to be paid. Remote services are also available, which allow you to pay on the website of the city authorities. Usually, each city has its own portal where residents can contact the administration.
Additional luxury tax
Since 2021, there is an additional annual fee for residents who own real estate worth more than TRY 5,250,000. The taxable base is calculated in accordance with the assessment of the Main Department of Land, Cadastre.
The tax rates for luxury houses and apartments in Turkey look like this:
| Real estate value | Tax rate |
|---|---|
| Residential properties worth TRY 5,250,000 to TRY 7,870,000 (EUR 519 761-779 147) | 0,3 % |
| Residential properties worth TRY 7,870,000 to TRY 10,500,000 (EUR 779 147-1 039 523) | 0,6 % |
| Residential properties worth TRY 10,500,000 (EUR 1,039,523) | Fixed amount – TRY 22,500 (EUR 2,227) + 1% for the amount exceeding the tax threshold |
This tax is also divided into two payments with installments until February and until August.
Municipal garbage collection fee
A separate column includes the payment for garbage collection, which is also a municipal fee. The cost depends on the location and size of the apartment or house, however, it cannot exceed more than 10-40 € per year.
Utilities
Current expenses for the maintenance of a house or apartment include IDAT, payment for electricity, water supply, gas supply (if available), and heating in the winter months. All utility bills are paid by meters, except for aidat. Let's talk about it in more detail.
Aidat is a payment for the maintenance of real estate
Aidat is made by all residents in an apartment building. The contribution is made for the maintenance and upkeep of the building:
- Cleaning and diagnostics of the pool.
- Elevator maintenance.
- Video surveillance and other automatic equipment services.
- Gardener, security, and concierge services.
- Cleaning in common areas.
In Turkey, the higher the payment is for the maintenance of the house, the more developed the infrastructure in the residential complex will be. The value of the ai date is determined by the tenants at the annual meeting. This is freely determined and can vary from 10 € to 100 € per month. When buying a house in Turkey, it’s an advantage to know the details of this payment in advance. Payment is made in cash to the manager of the residential complex or to a bank account if the service is provided by the management company.
Electricity
In 2022, there was a jump in electricity prices, the current cost of electricity in Turkey is as follows:
- 1.37 TL with a consumption of up to 150 kW/month.
- 2.06 TL with a consumption of more than 150 kW/month.
This indicator is still below the European average. However, do not forget that in the summer months you will use your air conditioner more often, which will increase the cost to a total higher than is stated in this article. The owner of a 1-room apartment can expect to pay up to 60 € per month. The more rooms there are — the higher the payment.
Due to high electricity rates, local residents treat its consumption carefully. They make use of energy-saving lamps and turn on the washing machine at night when a cheap tariff is in effect. There are 3 types of tariffs that are distributed over time. The current electricity tariffs can be found at the State Energy Company (PEGAS).
Water
Water costs are the most easily budgeted expense for apartment maintenance in Turkey. The cost of 1 cubic meter of cold water is about 4.75 lira. On average, you can expect to pay 3-5 € per person per month. There is no central heating water supply in the country, therefore boilers or solar panels are used everywhere — the installation of the latter allows you to significantly save on electricity. A family of three people will spend roughly 20 € per month on water.
When the owner of the apartment changes, the contract for the supply of electricity and water must be renegotiated. The cost of drawing up a new contract is about 200-300 €, while for the old fund this payment will be lower. To connect, you will need a passport, a TAPU, a technical passport and an earthquake insurance policy, which we will discuss below.
Gas supply
Gas is not connected to all apartments in Turkish cities. Locals generally use cylinders, which can be bought for 15-30 €. One cylinder is usually enough for a family of three people for 3-4 months.
Heating
Central heating is rare. For instance, on the Antalya coast, it can only be found in Antalya itself, and not in every area. In large complexes a boiler room can service several houses, owners often install personal boilers in their apartments.
In southern resorts where the climate is warm, there’s usually enough need for air conditioners to be installed in each apartment, which also provide heating in winter. Of course, you‘ll have to pay extra for electricity once again.
Communication services
Mobile Internet is actively developing in the country. Many large cities have 4G networks. Operators include Turkcell, TurkTelekom and Vodafone. Each offers approximately the same rates: a SIM card with a bundle of 60-100 minutes and 1-2 GB of internet costs about 10-15 € per month.
Please note that the Turkish SIM card will only work on a phone that hasn’t been registered in the country for 3 months. For permanent use, it is necessary to register the phone with the customs service (the registration fee is 20 €).
The apartment can be connected to home Internet with a TV package (ADSL or fiber optic, if the house is connected to these networks). It is most cost-effective to combine internet with a package that includes TV. Both services together will cost 15-30 € per month. Remember that contracts with providers are signed long term (one to two years) and penalties are enforced for early termination.
Insurance
Homeowners need to take out an earthquake insurance policy called DASK. The cost is 15-150 € per year, depending on the characteristics of the property and the desired coverage.
Example of calculation of taxes and payments
Apartments in Alanya with a developed infrastructure in a residential area with a 1 + 1 layout and a square-footage of 70 square meters costs approximately 54,500 €. Here, the sea is within walking distance. How much will it cost per year to maintain an apartment like this in Turkey?
- Annual tax fee – EUR 109.
- Garbage collection fee – EUR 20.
- Aidat – EUR 300.
- Water supply – EUR 180.
- Purchase of a gas cylinder – EUR 120.
- Electricity – EUR 840.
- Internet, TV — EUR 360.
- Earthquake insurance (DASK) – EUR 50.
- Total: EUR 1,979.
Rental of real estate in Turkey
The country is a popular tourist destination: the holiday season is long here and the demand for tourist accommodation is always high. There are many large cities where year-round rental is common. If you are choosing a purchase for such purposes, it will be useful for you to find out what your income will be, taking into account the expenses for the maintenance of the property in Turkey.
Housing for rent brings its owner a profit of about 3-5% per year, depending on the region and the condition of the apartment. According to analysts, net profit after taxes and fees is about 2%.
By law, individuals have the right to conclude long-term rental agreements. But at the same time, they must:
- Notarize the agreement.
- Register the renter at the address of the apartment in the Department of Civil Status, Population and Citizenship of the Ministry of Internal Affairs (Nüfus Müdürlüğü).
- Something to keep in mind: to register a renter who is not a citizen of the country, his foreigner identification number (yabancı kimlik numarası) will be required. This is required for those who live in the territory for more than six months because of a residence permit.
Short-term rentals can bring the owner of resort apartments a much higher yield - about 6-7%. In the warm season, two-room apartments in a coastal complex in Alanya can be rented for 250-500 € per week (depending on the condition of the apartment, season and booking time). When renting long-term (a year or more), similar 1+1 apartments will bring 250-350 € per month. But there is a catch.
Since January 22, 2017, a law has been enforced in Turkey that states that only a legal entity with a license for this type of activity, subject to several requirements, can rent housing for a short time.
It turns out that for ordinary owners of one or two properties on the coast, this type of rent has become difficult and unprofitable. However, there are possible solutions:
- Long-term rentals are still allowed.
- Buy a house from a company that professionally deals with daily rent (has the appropriate license).
The tax on rental income:
| Amount of income | Tax rate |
|---|---|
| Up to TRY 24 000 | 15 % |
| TRY 24 000–53 000 | 20 % |
| TRY 53 000–130 000 | 27 % |
| TRY 130 000–650 000 | 35 % |
| From TRY 650 000 | 40 % |
Cost of living in the country
In conclusion, it’s clear that the cost of owning Turkish apartments and houses, despite the many areas of expenditure, is lower than in many large Russian cities. For example, if you move from Moscow to Alanya or Istanbul, you will notice that rental expenses are about 50 percent lower, and the total cost of living is 10 percent less (according to statistics). However, Turkish salaries, as a rule, are lower than those in Moscow. According to statistics and recruitment agencies, the average salary in 2021 was TRY 8,000 per month, which at the current exchange rate is about 530 €. Specialists who have decided to continue working remotely feel especially comfortable: it’s really comfortable to live in a Turkish city on a Moscow salary.
Whatever your choice — to buy a house for yourself or for rent - we recommend contacting Turkish realtors. You’ll be able to pick up apartments in new buildings in Turkey or on the secondary market, which are guaranteed to meet both your expectations and budget.