Maintenance of real estate in Turkey

Content

• Annual taxes
• Public utilities
• Example of calculating taxes and utilities
• Renting
• Management companies
• Cost of living in the country
• Sale of real estate
• Summary: this is something to remember

The annual cost of an apartment or villa in Turkey will almost certainly be lower than for a similar property in Spain, Italy or other European countries. There are also property taxes here, but their amount is relatively small, and utilities are much cheaper. Foreigners, like Turkish citizens, are responsible for paying all bills on time.

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Annual taxes and fees

There are no additional fees specifically for non-residents in Turkey. Foreigners pay the same taxes as all locals.

Property tax

The amount of the annual property tax in Turkey (Emlak vergisi) depends on the type of property - residential, commercial or land.

It is important to take into account that these tax rates are calculated on the cadastral value of the property specified in TAPU, and it is usually several times lower than the market value, i.e. the one that was paid in the transaction. As a result, almost any resort apartment costs no more than €100 per year, more often less.

The tax must be paid 2 times a year - until the end of May and until the end of November. You can also deposit the entire amount at one time.

To pay the state, you need to go to the district administration (Belediye) and present the TAPU. The owner will be told the required amount and given details for paying the tax. In addition, this fee can be paid online on the city government websites. For example, property owners in Alanya can use the local city administration portal .

Garbage collection fee

In addition to the tax, property owners pay small municipal fees for garbage removal and street cleaning. Their size is determined by the city administration depending on the location and area of ​​the facility. Typically, the bill is between €10-40 per year.

Public utilities

All utilities in Turkey are paid by meter. In addition, regardless of whether the owner lives in the apartment or not, it is necessary to pay a fee for the maintenance of the complex - the so-called Aidat.

Aidat – payment for the maintenance of the complex

All apartment owners “chip in” to maintain the general infrastructure in good condition - cleaning swimming pools, maintaining elevators, closing gates and CCTV cameras, cleaning saunas, hammams and fitness rooms, paying for the services of a gardener, security guard, and concierge. Accordingly, the more extensive the infrastructure in the complex, the higher the monthly fee for each property owner.

The size of the aidat is determined by the residents at an annual meeting, they also choose a manager or hire a special company. Aidat can be either €10 per month for an apartment in an ordinary city house without its own territory, or €100 for an elite resort complex with several swimming pools, playgrounds and other “stuffing”.

You can pay in cash to the manager (don’t forget to get a receipt) or to the bank account of the management company.

Electricity

According to statistics, electricity prices in Turkey are among the lowest in Europe (cheaper only in Bulgaria and Hungary). Still, running air conditioners and other electrical appliances can add up to hefty bills.

For example, with the air conditioning turned on 24/7, the owner of a one-room apartment will pay about €50-60 per month for light; if several rooms need to be cooled, then even more. Therefore, locals are accustomed to saving money - installing energy-saving light bulbs and appliances, replacing electric stoves with gas ones, and trying to make the most of cheap “night” tariffs.

Payment for electricity is debited according to meters. Moreover, there are several tariffs in the country - night rates are several times cheaper. On average, €0.11-0.18 per kWh, depending on the time of day, the region where the property is located, and consumption volumes.

You can pay bills at the city administration, through online banking, at ATMs or post offices. For debts, electricity is turned off; in order to resume supply, you will have to fully repay the debt, taking into account penalties.

Water

Water in Turkey is cheaper than electricity. On average, €0.5-1.5 is paid for 1 cubic meter of water, depending on the volume of use.

There is no centralized hot water supply in Turkey. Water is heated by boilers or solar panels (the latter help save electricity).

Please note: If the owner of the apartment changes, a new contract for the supply of electricity and water must be concluded. The cost for new buildings is about €200-300, for secondary buildings - two times lower. To connect, you will need the original and a copy of the owner’s international passport, a copy of the TAPU or lease agreement, Iskan for real estate, and DASK earthquake insurance.

Gas

Not all apartments in Turkey are supplied with gas. Local residents are accustomed to using cylinders, which can be purchased for €15-30. One cylinder lasts for a family of three for 3-4 months.

Heating

Central heating, traditional for Russia or Ukraine, is rare in Turkey. For example, on the Antalya coast it can only be found in Antalya itself, and even there - not in all areas.

Large complexes may have their own boiler room for several houses; often residents install separate boilers in apartments, powered by electricity, gas or liquid fuel. In the old building, local residents use potbelly stoves.

In southern resorts, due to the warm climate, the capacity of the air conditioners installed in each apartment is usually sufficient to heat an apartment in winter. However, in this case the electricity bill increases.

Internet, TV, telephone

Mobile Internet is now actively developing in Turkey - many large cities have 4G networks. Operators Turkcell, TurkTelekom, Vodafone offer approximately the same conditions: a SIM card with an included package of 60-100 minutes and 1-2 GB of Internet costs about €10-15 per month.

Please note: a Turkish SIM card will work on a phone that is not registered in Turkey for up to 3 months, then the device will be blocked. To constantly use communication, you need to register your phone with the customs service and pay a small fee - about €20.

The apartment can be provided with home Internet with a TV package (ADSL or fiber optic if the house is connected to networks). The standard price tag for these services is €15-30 per month. It is worth considering that contracts with providers are signed for a long period (1-2 years) and there are penalties for early termination.

Insurance

In Turkey, property owners must take out an earthquake insurance policy - DASK. Cost - €15-150 per year, depending on the characteristics of the object and the desired coverage.

Example of calculating taxes and utilities

Apartment in a residential complex with a swimming pool, sauna, fitness, children's playground, 1+1 (1 bedroom + 1 living room), area 65 sq.m. m, price €62,000, 1 km from the sea.

• Annual annual tax (approximately) - €100
• Aidat, fees for maintaining the complex (garden care, pool cleaning,
• arrangement and cleaning of the territory, security, etc.) per year - €550
• Water fee (per year) - €180 (15 euros per month)
• Gas (Gas cylinder) - €120 (4 per year - 30 euros each)
• Electricity per year - €600 (average 50 euros per month)
• Earthquake insurance DASK - €50 per year
• Total expenses per year - €1050

Renting out real estate in Turkey

Türkiye is a popular country with tourists with a long holiday season. In the warm season, a 1-bedroom apartment in a good complex by the sea in Alanya can be rented for €250-500 per week (depending on the condition of the property, season, time of booking). When renting out real estate for a long term (from a year), similar 1+1 apartments will bring €250-350 per month.

Please note: On January 22, 2017, a law came into force in Turkey, according to which only a legal entity with a license for this type of activity and subject to a number of requirements can rent out housing for a short period of time.

In fact, for ordinary owners of 1-2 apartments on the coast, this type of income has become unavailable. Solutions may be as follows. Firstly, it is still allowed to rent out real estate for a long time. Secondly, you can buy real estate from a company that professionally deals with daily rentals (has the appropriate license).

Tax on rental income in Turkey

Management companies

Real estate rental services in Turkey are usually offered by agencies that deal with buying and selling. This includes cleaning, supervising the property, as well as searching for tenants, concluding contracts, and monitoring payments. In addition, many developers have their own rental departments. There are projects in which the developer, together with the management company, guarantees the delivery of real estate for several years, and the owner receives a fixed amount in the contract, regardless of the results of the actual delivery. You can also pay the manager upon check-in of the tenants, paying an agreed percentage of the rent.

Cost of living in the country

Living costs in Turkey are lower than in large Russian cities. For example, if you move from Moscow to Alanya or Istanbul, you will pay 60-75% less for rent, 40-53% less for lunch in cafes and restaurants, and 10-23% less for groceries in stores (data from Numbeo). However, salaries in Turkey are usually lower.

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Sale of real estate

The Turkish real estate market is on the rise again. After a decline in 2016 (due to the conflict with Russia and the attempted coup), the number of transactions with foreigners is growing. The Russians are in the top five. Prices for apartments and houses increase by 10-15% per year, however, the local currency exchange rate is unstable, and overall inflation in the country is high. But local authorities are adopting new laws to support foreign demand. Therefore, selling a high-quality apartment at an adequate price will not be difficult.

The two most significant items of expense for an apartment seller in Turkey are the state tax on income from the sale of real estate and the realtor's fee, which it is unlikely that you can do without it.

Taxes on the sale of real estate in Turkey

Owners of real estate - individuals, including foreigners - are exempt from paying capital gains tax on the sale of a property if they have owned it for more than 5 years. If the transaction is concluded earlier, then the tax rate is progressive, depending on the amount of profit (data in the table for 2017).

Property owners - legal entities - pay a tax of 20% of the profit upon sale.

Realtor fees in Turkey

There are no fixed rates for agency fees in Turkey - this is subject to negotiation. In practice, realtors usually charge the seller 3-6% of the property price.

Summary: this is something to remember

• In Turkey, there are annual property taxes that foreign owners must pay, but their amount is relatively small. Most resort apartments cost less than €100 per year.
• All utilities in Turkey are paid by meter. In addition, regardless of whether the owner lives in the apartment or not, it is necessary to pay a fee for the maintenance of the complex - the so-called Aidat. The size of this payment depends on the infrastructure in the house.
• Turkish legislation does not prohibit owners from renting out their properties for long-term rent, but there are restrictions on daily rent to tourists. This activity is equivalent to the hotel business and requires licensing.