Ancillary Costs of Property Purchase in Istanbul in 2025

Just as in Iran, when buying property, we face additional costs such as municipal fees, notary fees, agency commissions, and title deed transfer fees, foreign investors in Turkey also need to consider specific ancillary costs when purchasing property. The ancillary costs of buying property in Istanbul will vary depending on whether the property is new (directly from the developer, whether under construction or ready for delivery) or second-hand.

For example, when buying directly from a developer, there is no commission fee, whereas this cost applies to second-hand properties. Unfortunately, there have been instances where opportunistic individuals have exploited the unawareness of investors and illegally charged commissions to buyers of new properties. To prevent such exploitation and avoid budget shortfalls due to a lack of knowledge about ancillary costs, it is essential to be familiar with all the hidden costs of buying property in Istanbul. This article will thoroughly explain these costs as a specialized and transparent guide.

Ancillary Costs when Buying from a Project and Developer (New Property)

In Istanbul, property purchase is possible through two methods: buying new property and buying second-hand property. The process of buying property in Turkey and its pricing for a “new, ready-to-deliver” or “under-construction” unit in a project will differ from a second-hand property. We will first examine the costs associated with buying from new projects.

Buying from new projects is a popular option due to modern amenities and flexible payment terms. However, there is a list of costs that must be carefully considered:

Title Deed Transfer Fee (Tapu Harcı):

This fee is officially 4% of the declared value of the property in the deed. The important point here is the “developer’s sales strategy.” Some construction companies undertake a part or all of this cost as a discount to make their offer more attractive. Therefore, this amount can vary for the buyer between zero and 4%. This amount must be paid on the day of title deed transfer at the Land Registry Office (Tapu Dairesi).

Government Service Fee (Döner Sermaye):

This fee, paid to the Land Registry Office, covers the operational costs of this office. As of April 30, 2025, the Turkish government has increased this amount, and it is now approximately 3% of the registered value of the property in the deed.

Value Added Tax (KDV):

For new residential properties with an area of less than 150 square meters, this tax is usually 1% of the property value. This rate is 20% for commercial units or luxury properties over 150 square meters. However, the Turkish government, to encourage foreign investors, grants tax exemption to properties subject to the 20% tax, and these individuals only have to pay 1% tax.

. This tax exemption applies to individuals who have not yet obtained residency (any type of residency) or citizenship in Turkey. Therefore, as long as you have not obtained Turkish residency or passport, you can use this law once and be subject to tax exemption.

Utility Connection Fees (İskan ve Abonelikler):

After the project is completed and the occupancy permit (İskan) is obtained, you will need to connect water, electricity, and gas meters. This cost varies depending on the project, the number of meters, and the policies of utility companies, and can amount to a significant sum.

Mandatory Earthquake Insurance (DASK):

Turkey is an earthquake-prone country, and this insurance is mandatory for all properties. Its cost is annual and is calculated based on the property’s area and type of construction. The amount is usually not high but is an essential and recurring expense.

Building Management Fund Fee (Aidat Depozitosu):

Many projects collect an amount as a deposit or advance payment for monthly charges (Aidat) from you at the time of unit delivery to cover the initial building management costs.

Translation and Notary Fees (Noter):

): For foreigners, official translation of passports and identity cards and their certification at an official notary office (noter) is mandatory. This cost in 2025 is estimated to be approximately 3000 Turkish Lira.

Notary Contract Fee (for Installment Purchases):

): If you purchase the property in installments and the deed is not transferred to your name until full settlement, a “Sales Promise Agreement” (Satış Vaadi Sözleşmesi) is prepared at the notary. This is one of the common and legal methods of buying property in Istanbul through pre-sale or under-construction. The cost of this contract depends on the property’s value, and if you are not fluent in Turkish, the fee for an official notary translator will be added.

Power of Attorney to Developer:

In the case of buying property from a developer (installment or cash), to allow the developer to obtain the occupancy permit for the property, handle the transfer of the deed to the owner’s name, and avoid each owner having to visit the municipality individually, a power of attorney is given to the developer’s representative to handle municipal and deed-related matters on your behalf. This power of attorney also has its own office fees.

. If you would like to know more about pre-sale projects, we recommend reading the article “Are under-construction projects in Turkey reliable?”

Ancillary Costs when Buying a Second-Hand Property (Resale)

Now let’s move on to buying a second-hand property. A second-hand property refers to a property that has been bought and sold at least once before. The ancillary costs for this type of property include:

Title Deed Transfer Fee (Tapu Harcı):

In this case, the payment of the full 4% of the registered property value in the deed is traditionally and legally the responsibility of the buyer and seller (2% each). However, in Turkish market custom, typically the entire 4% is paid by the buyer. This matter must be clarified before the transaction.

Government Service Fee (Döner Sermaye):

Similar to buying from a new project, this fee, which is approximately 3% of the registered property value, must be paid by the buyer to the Land Registry Office.

Real Estate Commission (Emlak Komisyonu):

When buying a second-hand property, a real estate agent usually mediates the transaction. The legal commission fee is 2% of the sales price plus VAT, which is collected from each party (buyer and seller).

Mandatory Earthquake Insurance (DASK):

Similar to new properties, this insurance is mandatory and must be obtained or renewed before the title deed transfer.

Translation and Notary Fees:

Translation and certification of your identity documents are mandatory at an approximate cost of 3000 Lira.

Official Translator Fee at the Land Registry Office:

: If you are not fluent in Turkish, the presence of an official and sworn translator is mandatory on the day of title deed transfer at the Tapu Office. This translator is assigned by the office itself, and the parties to the transaction cannot bring their own translator. The cost of this translator in 2025 is approximately 5000 Lira.

Deed Transfer Application Fee:

There is also a small fee for submitting the application and administrative procedures at the Land Registry Office, which is about 3000 Lira.

Informed Investment, the Key to Successful Property Purchase in Istanbul

In general, the ancillary costs of buying property in Istanbul amount to between 5% and 10% of the property’s value and are not a large sum. You only need to be aware of the costs you are obligated to pay and those that do not apply to you, depending on the type of property you are purchasing.

Also, do not forget one important point!

If your goal in buying property in Turkey is to obtain a passport and citizenship of this country, whether you buy a new property or a second-hand one, obtaining an official property appraisal report from a government-approved company is mandatory. This report determines the actual value of the property and serves as the basis for calculating the title deed transfer fee. So, if you want to get a passport by buying property, also consider the cost of the official property appraisal report.

Finally, our recommendation to you as a smart buyer is:

Always allocate at least 10% more than the property purchase price for ancillary costs of buying property in Istanbul and benefit from the services of a reputable and experienced real estate consulting firm. A good consultant will not only help you find the right property but also guide you through all legal procedures and ancillary costs you need to pay, protecting your financial interests.

One of our services at Home Turkey Holding is providing comprehensive consultation and support for your property purchase in Turkey. If you intend to invest in real estate in Turkey and Istanbul, simply contact our experts and benefit from a free consultation.