One of the most common questions foreign buyers ask is how much extra they should budget beyond the purchase price when buying property in Turkey. Closing costs can vary depending on the property type, whether the property is resale or brand new, and whether the buyer is foreign or Turkish.
As a general rule, buyers should usually budget approximately 7–8% above the purchase price to comfortably cover taxes, legal costs, registration fees, utility setup and related transaction expenses. Furnishing costs should also be considered separately where applicable.
This guide explains the main closing costs involved when buying property in Turkey in 2026, including title deed tax, VAT, legal fees, valuation reports, DAB requirements and utility registration costs.
How much are closing costs when buying property in Turkey?
The exact amount depends on:
- whether the property is brand new or resale;
- whether the buyer is foreign or Turkish;
- the value and size of the property;
- whether financing is involved;
- whether VAT applies;
- whether legal representation is used;
- the furnishing and setup requirements.
Some costs are mandatory, while others depend on the structure of the purchase. Below are the main items buyers should account for before proceeding.
1. Title deed transfer tax (Tapu Harcı)
Title deed transfer tax is one of the main transaction costs when buying property in Turkey.
The official transfer tax is currently 4% of the declared transfer value registered at the Tapu office.
Traditionally, this cost is shared between buyer and seller at 2% each, although in practice the exact structure can vary depending on negotiation, market conditions and the type of transaction.
For new-build developer purchases, the full amount is often paid by the buyer as part of the overall transaction structure.
Buyers should also understand that the official declared transfer value used for title deed registration may differ from the market sale price depending on applicable regulations, municipal reference values and transaction structure.
2. VAT on property purchases in Turkey
VAT treatment depends on the property type, size, developer structure and buyer status.
Properties under 150 sqm
Residential properties under 150 square metres qualify for reduced VAT rates. Usually 10% but sometimes 1% depending on the status of the land it was built on.
Properties above 150 sqm
Larger residential units and certain luxury properties attract significantly higher VAT rates. Currently 20% of the purchase price.
In many developer projects, VAT is already included within the advertised purchase price, meaning buyers do not necessarily see it as a separate payment line item.
Buyers who are not ordinarily resident in Turkey purchasing with foreign currency qualify for VAT exemption under specific conditions. Buyers should confirm eligibility with Pera, their lawyer or tax advisor before signing contracts.
3. Real estate agency fees
Agency commission structures differ between resale and developer purchases.
Resale properties
For resale apartments and villas, buyers commonly pay agency commission. In Istanbul, this is legally 4% plus VAT depending on the agreement.
Developer projects
Brand-new developer purchases usually do not involve direct buyer commission because the developer pays the agency commission separately.
4. Legal fees and due diligence
Many foreign buyers instruct an independent lawyer to carry out legal checks before transfer.
- ownership verification;
- mortgage and encumbrance checks;
- building licence and iskan checks;
- developer due diligence;
- contract review;
- power of attorney preparation where required.
Legal costs vary depending on the complexity of the transaction and whether the purchase involves residency or citizenship applications.
For standard residential purchases, buyers commonly budget from approximately $1,500 USD onwards for legal representation and due diligence.
5. Property valuation report (Ekspertiz)
Foreign buyers are generally required to obtain an official valuation report before the title deed transfer can be completed.
The valuation report is prepared by a licensed valuation company approved within the Turkish banking and land registry system.
- required for foreign-buyer transactions;
- submitted during the Tapu process;
- used for official transaction compliance;
- usually valid for a limited period.
The cost depends on property size, location and valuation company pricing. At the time of writing, the cost is 50,000 lira ($1,000 approx).
6. DAB / foreign currency conversion requirement
Foreign buyers are generally required to bring purchase funds into Turkey as foreign currency and convert them into Turkish lira through the banking system before transfer.
This process generates a DAB (Döviz Alım Belgesi / foreign exchange purchase certificate), which is required during the title deed transfer for foreign purchases. On new build property this is generally done by the seller. ON resale property, we strongly recommend the buyer does the transaction with the central bank themselves. Pera Property can guide buyers through this process.
Buyers should also account for bank conversion spreads, transfer fees and currency-exchange timing considerations when budgeting total acquisition costs.
7. Notary and contract costs
Certain developers and government-backed projects may require notarised purchase contracts.
In these situations, buyers may incur:
- notary fees;
- translation costs;
- official interpreter fees;
- contract stamp duty costs where applicable.
Costs depend on the contract structure, property value and number of translated pages.
8. Utility registration costs
After completion, buyers usually need to activate utilities in their own name.
Common utility setup costs
- electricity connection;
- water registration;
- gas subscription where applicable;
- internet installation;
- site access cards or setup fees.
Estimated registration budget
Utility registration costs vary significantly depending on the building, district and provider structure, but buyers should generally budget several thousand Turkish lira for initial setup.
9. Mandatory insurance costs
Property owners in Turkey are required to maintain compulsory earthquake insurance known as DASK.
DASK insurance
DASK is the mandatory national earthquake insurance scheme and is required for many utility and ownership procedures.
Additional home insurance
Many buyers also choose additional building and contents insurance for wider protection against fire, water damage, theft and liability risks.
10. Furniture and setup costs
Furniture and setup costs are often underestimated by overseas buyers, especially those purchasing for rental income or part-time living.
- white goods;
- air conditioning;
- beds and mattresses;
- curtains and blinds;
- kitchen equipment;
- televisions and internet setup;
- small household items.
Furnishing costs vary dramatically depending on quality level and whether the property is intended for personal use, executive rental or long-term investment.
Common mistakes buyers make when budgeting
- Only budgeting for the purchase price
- Ignoring legal and bank-related costs
- Underestimating furnishing expenses
- Forgetting utility registration fees
- Assuming VAT never applies
- Not accounting for DAB conversion spreads
- Assuming all projects include the same fees
- Failing to budget contingency funds
- Ignoring translation or notary requirements
- Using unrealistic exchange-rate assumptions
Need help buying property in Istanbul?
Pera Property assists overseas buyers with property sourcing, legal coordination, developer negotiations, title deed transfer support and purchase guidance throughout Istanbul.
Frequently asked questions about closing costs in Turkey
How much should I budget beyond the purchase price?
Buyers commonly budget approximately 7–8% above the purchase price to cover taxes, fees, legal costs and registration expenses.
Who pays title deed tax in Turkey?
Officially, the transfer tax is shared between buyer and seller, although the exact arrangement can vary depending on negotiation.
Do foreign buyers pay VAT in Turkey?
VAT treatment depends on the property type, project structure and buyer status. Certain foreign buyers may qualify for exemption under specific conditions.
What is a DAB certificate?
A DAB is the official foreign exchange conversion certificate generated when foreign currency is converted into Turkish lira through the banking system.
Is a valuation report mandatory?
Yes, valuation reports are generally required for foreign-buyer transactions before title deed transfer.
Are legal fees mandatory?
Legal representation is not legally mandatory, but many foreign buyers prefer to instruct a lawyer for due diligence and contract review.
