Mortgages and Fees

Information about getting a mortgage when buying a house in Turkey. Also details on the fees associated with property purchase...

Prior to 2007, most houses in Turkey were financed via leases. Legislation passed in 2007 led to the introduction of mortgages, similar to those available in much of Europe and the United States. Mortgage repayment periods typically range from 5 to 20 years and many providers stipulate that the mortgage holder must repay their mortgage before they reach a certain age. Applications for a mortgage must be supported by clear evidence of the ability to keep up with repayments.

In Turkey, there are other fees which need to be paid, in addition to the purchase price of a property. These include fees associated with registration (lawyer, notary, interpreter and permits), which are usually about one percent of the purchase price.

The following fees are shared between the buyer and the seller:

  • Stamp duty, which is charged at 0.75 percent of the purchase price
  • A three percent title deed charge, which is paid to the Land Registry when the TAPU is received
  • A commission of about six percent for the estate agent

Property tax is a municipal tax on both land and property. The rate depends on the property's classification. In the year that the property is sold, it should be paid by the seller, with the buyer taking responsibility the following year. The buyer should inform the local authority of the price paid for the property.

Earthquake insurance is compulsory when buying a property.