To buy real estate in Turkey for expats can be a very profitable decision. Is it possible to make money by renting out housing in Turkey? To find out the answer to this question, you need to understand what taxes and other payments homeowners must pay in Turkey, what the utility bills are, and other nuances of owning real estate. The size of utility bills here is much lower than in other European countries, such as Spain or Bulgaria, and the demand for rental housing is quite high, especially during the holiday season. For future investors it a valuable information.
Taxes in Turkey
Foreign citizens pay the same taxes as citizens of the country, and there are no additional fees. The annual tax rate (Emlak vergisi) varies depending on the property type. The rate is different for residential and commercial real estate and land.
For an apartment or villa in a provincial city, you will have to pay 0.1% of its cost. For a big city – 0.2% of the cost of housing.
For commercial real estate, the rate is 0.2% in provincial cities and 0.4% in metropolitan areas. The tax rate for owning land without permits for construction work will be 0.1-0.2%, and if there is a permit for construction work – 0.3-0.6% (depending on the size of the locality where the site is located).
Utility bills. To calculate the tax, the cadastral value of the property registered in TAPU is taken. It is often significantly lower than the market price and approximately equal to the amount paid upon purchase. For an apartment or villa in a resort town, the owner pays about €100 annually and, more often, even less. To pay the fee, you must go to the district administration office (Belediye in Turkish) and present it to a TAPU employee. Here, the owner of a residential property will receive details for paying the tax fee. You can also fulfill your obligations to the state on the website of the local administration.
Utility payments in Turkey
Utility payments in Turkey include several main expense items, such as payment for the maintenance of the common area, water supply, electricity, and insurance.
Aidat is the cost of maintaining the common territory of a residential complex. The cost of the service depends on how extensive its infrastructure is: if there is a swimming pool or tennis court, the fee will be much more than the fee for an ordinary residential building. The minimum aidat amount is about €10-15 per month. For residential complexes with a sauna, games room, and other amenities, the allowance will be €30-100.
Every year, the management company reports to the owners on where the funds were spent. If there is a lack of money for the needs of the complex, the aidat may increase.
Management Company
As a rule, owners use the services of management companies to rent out housing. The homeowner can receive a fixed monthly fee according to the contract terms or pay a certain percentage of the company for its services.
Heating
Heat supply There is no centralized heating practically anywhere in Turkey. Most apartments are heated by private boiler houses running on electricity, gas, or liquid fuel. In the southern regions, an air conditioner is sufficient to heat an apartment.
Internet, television, telephone
Internet Cellular communications in Turkey will cost €10-15 monthly. This amount also includes several gigabytes of the Internet. Home Internet will cost €15-30. If the contract is terminated early, a fine may apply.
Tax on income from rental property in Turkey
Renting real estate in Turkey is subject to tax. The tax is calculated on a progressive scale:
- less than 13 thousand liras – 15%;
- 13 – 30 thousand liras – 20%;
- 30 – 70 thousand liras – 27%;
- over 110 thousand liras – 35%.
The responsibility to pay tax lies with the owner.
Utility bills are paid by the management company or the tenant by agreement with the property owner. It is worth noting that only long-term rentals are freely permitted. When renting out housing to tourists for a short period, you must obtain a license, like a hotel.
Home insurance in Turkey
Property insurance in Turkey is mandatory. When purchasing real estate, owners purchase a DASK policy in case of an earthquake. Its cost varies in the range of €15-150. On average, owners pay €50 per year for insurance.
Temple of Artemis It took 120 years to build. This majestic building was built in the 6th century BC. Unfortunately, only ruins remain. House of the Virgin Mary. According to one version of the biography of the Virgin Mary, the mother of Jesus Christ spent the last years of her life in Ephesus. Today, you can see a small house with a chapel built into the house’s walls. The Catholic Church does not support this version. Despite this, thousands of believers from all over the world come here to pray. In addition, there are three popes. Library of Celsus. The building was built at the beginning of the 2nd century AD. It is now a magnificent ruin, illustrating the grandeur of the building. During the Roman Empire, more than 12,000 scrolls have been preserved here. The library became the tomb of the statesman Celsus. The Goths almost destroyed the building.
Ishak Pasha Palace This is a real oriental legendary palace. It is not only a masterpiece of Turkish architecture but also a masterpiece of world architecture. The palace is located near the southern border of Turkey, near Iran, near Dogubayazit. The palace took almost 100 years to build. Construction began in 1685 and ended in 1784. The palace amazes with its power and beauty. It has 2 floors and 356 rooms. Each room has a stone fireplace. Surprisingly, the palace has central heating. The palace has mosques, baths, harems, real dungeons, and mausoleums.
Regarding the number of exhibits, the Ishak Pasha Palace competes with the Hermitage. Tourists come here not only to admire the luxury of the palace. Picturesque areas with magnificent mountain landscapes surround it.
Property for purchase in Turkey
On https://turk.estate/en/, you have a chance to find the property in different cities of Turkey. Easy search tools can help to uncover the best property offers according to your budget and wishes.
