Buying Property in Turkey: Taxes, Costs, ROI, Property Maintenance, Residence Permit and Citizenship

Initial costs:

• Purchase tax (Tapu Harcı) – 4% of the cadastral value of the property (usually lower than the market price).
• Notary and legal services – about 1,000–1,500 euros.
• State fee for registration of property rights – from 300 to 600 euros.
• Real estate appraisal – 100–300 euros.

Annual taxes and expenses:

• Property tax – 0.1–0.6% of the value depending on the type and location of the property.
• Rental property tax – 15–35% of income depending on the amount of profit.
• Utility payments – from 50 to 200 euros per month depending on the region and type of housing.
• Aidat (complex maintenance) – from 20 to 200 euros per month depending on the level of infrastructure.

The average rental yield of real estate in Turkey is 5-8% per annum, depending on the location and type of property. The most popular regions for investment are:

• Istanbul is a dynamic market with high rates of price growth.
• Antalya and Alanya are popular resorts with high demand for rentals.
• Izmir is a promising city with a growing economy and infrastructure.

Profit can also be obtained due to the growth in real estate values. On average, prices grow by 5-15% per year, depending on the region.

Property owners bear the costs of its maintenance, including:

• Utilities (electricity, water, gas) – 50-100 euros per month.
• Maintenance of the residential complex (aidat) – depends on the infrastructure.
• Housing insurance – about 150-300 euros per year.
• Repair and maintenance of the property – individual expenses.

Buying real estate in Turkey gives the right to obtain a residence permit. Basic requirements:

• Minimum cost of the property - from 50,000 dollars in small cities and from 75,000 dollars in large cities (Istanbul, Antalya, Izmir).
• A residence permit is issued for 1-2 years with the possibility of extension.
• A residence permit does not give the right to work, but allows you to live freely in the country.

Turkey offers citizenship through investment in real estate. The main conditions are:

• Purchase of real estate property(s) for at least $400,000 (we are talking about the cadastral value of the property!).
• The property cannot be sold for three years.
• The citizenship application procedure takes from 6 to 12 months.
• Citizenship extends to the spouse and minor children.

Turkey is an attractive destination for property purchases due to its affordable prices, high ROI, and opportunities for residency and citizenship. However, it is important for investors to consider taxes, maintenance costs, and local regulations to make the most of their investment.

Have you decided to buy real estate in Turkey as a profitable investment, personal residence or obtaining citizenship? Contact us!

Mercury Group specialists offer individual solutions for each client:

• we will monitor the market and select real estate in Turkey that meets your criteria;
• we will accompany you at all stages of the turnkey transaction;
• we will prepare the necessary package of documents for obtaining citizenship in Turkey.