What are the REAL Costs Owning Property in Turkey?
Are you wondering how much it really costs to own property in Turkey? In this article, I’ll show you what you can expect to pay each year.
All information in this article and more is also included in my YouTube video:
Overview Costs Owning Property in Turkey
I bought eight properties in Turkey over the last ten years. Besides our lifestyle property, I own furnished and unfurnished rental properties. I’ll share my real expenses for all the different cost items. This article is structured into eight sections:
- Property tax (“emlak vergisi”)
- Luxury property tax (“değerli konut vergisi”)
- Monthly dues (“aidat”)
- Earthquake insurance (“DASK sigorta”)
- Rental income tax (“kira gelir vergisi”)
- Maintenance costs
- Property management
- Overall Yearly Costs Owning Property in Turkey
1) Property tax (“emlak vergisi”)
Let me start with the costs every owner of property in Turkey has to pay. The first one is property tax. The tax depends on the tax value of the property and the municipality.
To give you some real figures, I’ll use two examples. The first one is a $300k lifestyle property in Istanbul. The second is a $150k rental property in Istanbul. This combination of properties is quite popular among people who are considering Turkish Citizenship by Investment. Property tax is paid per year. For the first property it will be less than 200 USD, and for the second one, less than 150 USD.
2) Luxury property tax (“değerli konut vergisi”)
Next is another property tax that is not well known by many people. This is the luxury property tax. It is relevant if the tax value of the property is more than around $360k. However, there are several exceptions. For example, if you own only one property in Turkey, you do not have to pay this tax.
And the tax is quite restricted. As a rough guideline: If your property has a tax value of around one million USD, the tax would be around 4,500 USD per year. In our case, there are no costs in this category.
3) Monthly dues (“aidat”)
Number three is the monthly dues. These are expenses for the entire building. At a minimum, they cover the costs for the elevator and cleaning of the common areas. For these two items, the monthly cost is less than 15 USD per month in a standard apartment building. If there is a tenant in the property, then this expense is paid by the tenant.
Please note monthly dues depend on the number of amenities and services provided by the building. Examples include a gym, pool, sauna, reception, or security. In most gated communities and residences, monthly dues range between 150 and 400 USD. However, in luxury residences, they can be more than 1,000 USD per month.
4) Earthquake insurance (“DASK sigorta”)
The fourth cost item every owner of property in Turkey needs to pay is earthquake insurance. The premium depends on the location, the building and the property itself. It is paid per year. For the lifestyle property in Istanbul, I expect less than 60 USD per year. And for the rental property in Istanbul, less than 50 USD per year.
5) Rental income tax (“kira gelir vergisi”)
Let’s now continue with the cost items related to rental properties. First comes rental income tax. For this calculation, I assume there is only one rental property and no other income in Türkiye. If this $150k property in Istanbul is unfurnished, it can generate a monthly rent of around 800 USD. In this case, the effective tax rate is less than 15% of the rent.
6) Maintenance costs
Number six is maintenance costs. These are costs for necessary repairs and required paint jobs when your tenant moves out. I am assuming a property that is not older than 15 years. Based on my own property experience over the last ten years, I would expect maintenance costs of less than 2% of the rent.
7) Property management
Number seven is property management. This means someone in Istanbul takes care of everything related to the property and the tenant when required. In general, this costs around 8% of the rent.
8) Overall Yearly Costs Owning Property in Turkey
So, if you add everything up, owning a $300k lifestyle property in Istanbul can cost less than 500 USD per year. And for the $150k rental property in Istanbul, you can expect yearly costs of around 25% of the rent.
How to find your dream property in Turkey
If you want to learn how to find your dream property in Turkey, and which cities I recommend for foreigners, watch this full guide here.
You can explore other articles about Istanbul by clicking on one of the following categories: