Property maintenance in Turkey in 2024
Property maintenance in Turkey is cheaper for owners than in most European countries, and the cost of living in popular Turkish resorts is lower than in Bulgarian ones. At the same time, the rental yield is 3–6% per annum, according to the Endeksa analytical agency. In this article, we've put together a comprehensive guide to property maintenance costs: taxes, utilities, and insurance — complete with examples, links to official sources, online calculators, and payment instructions.
Annual taxes for homeowners
Annual property tax (Emlak Vergisi)
Homeowners in Turkey pay a council tax, which is calculated from the property's cadastral value. The tax rate depends on the type and location of the property:
Property type | Tax rate in major cities * | Tax rate in other regions |
|---|---|---|
0.2% | 0.1% | |
0.4% | 0.2% | |
Plot without building permit | 0.2% | 0.1% |
Plot with building permit | 0.6% | 0.3% |
*Major cities of Turkey with higher property tax rates: Adana, Erzurum, Kocaeli, Sakarya, Ankara, Eskisehir, Konya, Samsun, Antalya, Gaziantep, Malatya, Sanliurfa, Aydin, Hatay, Manisa, Tekirdag, Balikesir, Istanbul, Mardin, Trabzon, Bursa, Izmir, Mersin, Van, Denizli, Kahramanmarash, Mugla, Diyarbakir, Kayseri, Ordu.
If the building is included in the list of cultural heritage objects of Turkey, then the taxable amount is increased by 10%.
Property tax is paid directly to the local municipality or to a bank with which the municipality has a special agreement to accept payments.
Property tax is paid twice a year — in March and in November.
Luxury property tax
Residential properties worth more than 5,227,000 Turkish liras (352,000 US dollars at the April 2022 exchange rate) are subject to the progressive tax. There are over 150,000 such properties in Turkey.
Price range, in Turkish liras and US dollars* | Tax rate |
|---|---|
5,227,000 – 7,841,000 ₤ (352,000 – 528,000 $) | 0.3% |
7,842,000 – 10,455,000 ₤ (528,000 – 704,000 $) | 0.6% |
Over 10,445,000 ₤ | The tax consists of two parts: a fixed amount of 23,526 ₺ (1,515 $) + 1% of the cadastral value exceeding 10,445,000 ₺ |
$547,000
Total area 202 m² 3 bedrooms
$1,126,000
Total area 450 m² 6 bedrooms
$536,000
Total area 160 m² Land area: 260 m²
From $1,604,000
Completion in: 2024.II 7 units in total
From $2,233,000
Completion in: 2025.II 73 units in total
$579,000
Total area 250 m² Land area: 600 m²
Waste collection tax
Waste collection tax in Turkey is calculated based on the property usage (residential or commercial). If the property has a tenant, then that tenant — and not the property owner — pays waste collection tax.
This tax is paid in the same periods as the property tax. For residential buildings, the tax amount is calculated based on the volume of water used by the household with the following rates:
In major cities’ municipalities (Büyükşehir Belediyesi) | 0.68 ₤ per cu m |
|---|---|
In other municipalities | 0.5 ₤ per cu m |
Waste collection tax is included in water bills.
Commercial facilities have their own tariffs, which depend on the amount of waste.
Utilities: tariffs and payment
Maintenance of common facilities (Aidat)
Owners of apartments and flats in residential complexes pay aidat — a monthly fee for the maintenance of common facilities: the local area, gyms, swimming pools, recreation areas, playgrounds, and concierge services.
Aidat is regulated by the Condominium Law (Kat mülkiyeti kanunu). The amount of aidat is determined at the owners of the house’s meeting (Kat Malikleri Genel Kurulu). The more extensive the infrastructure in the complex is, the higher the amount of aidat. Aidat usually varies from 20 to 100 US dollars per month for one apartment.
The owners of apartments in the residential complex are obliged to pay aidat, regardless of whether they use common facilities or not. If the apartment is rented out, the tenant pays aidat.
Electricity tariffs
From 1 April 2022, the cost of electricity consumption for domestic use in Turkey is calculated at the following rates:
When consuming up to 210 kW per month | 1.37 ₤ per 1 kW |
|---|---|
When consuming more than 210 kW per month | 2.06 ₤ per 1 kW |
Current electricity tariffs are published on the Turkish Energy Atlas website.
Water tariffs
In Turkey, there is no uniform water tariff: the cost is determined by the municipal resource supply organisations. In April 2022, a cubic metre of water for residential use in Istanbul cost 5.56 Turkish liras, in Antalya — 8.25 Turkish liras (less than 1 US dollar), and in Izmir — 7.56 Turkish liras. To calculate water costs, it is convenient to use the calculator on the hesapliyor website.
Heating systems in Turkey
In winter, it is relatively warm only on a narrow coastline along the Mediterranean and Aegean seas, but even there it is +10 –15°C during the day and colder at night. In other regions, average daily temperatures in winter drop to +3 –5°C, in some places there is even snow and frost down to -15°C. There is no central heating in Turkey. Heating system options vary in different regions of the country.
Option 1. Communal (centralised) boiler for heating and hot water. The boiler can run on gas or coal. Coal heating is 10–15% cheaper. Communal heating is the most comfortable option; most new houses are designed and built according to this principle.
Option 2. Individual gas boiler in areas with central gas supply. Such heating is less efficient and comfortable than communal heating: it takes much longer to heat the water, and gas consumption is higher.
Option 3: Heating with air conditioners and electric heaters is often used in coastal cities.
Option 4. Autonomous furnaces and boilers for different types of fuel are often used in older housing stock in colder regions.
Natural gas tariffs for residential buildings
Gas tariffs are determined by municipal resource supply organisations. As of April 2022, 1 cubic metre of gas for domestic use in Turkey costs from 2.2 to 3 Turkish liras. You can easily calculate gas costs on the hesapliyor calculator.
Since the beginning of 2021, energy prices have been rising exorbitantly, but the Turkish authorities are taking measures to smooth out the costs to end consumers. Each cubic metre of natural gas used in residential buildings is 70% financed by the state.
At the same time, according to the Household Energy Price Index (HEPI), the most affordable natural gas in Europe is offered in Turkey.
Expenses for communication services: Internet, TV, telephone
The largest telecommunications service provider in Turkey is Turkish Telekom. Tariffs for Internet, TV and mobile communications vary slightly between providers, therefore, to estimate the average costs, we turn to Turkish Telekom's basic tariffs:
- Internet subscription fee is 35–100 Turkish liras per month;
- cable TV subscription fee is 20–40 Turkish liras per month;
- landline phone will cost 50–80 Turkish liras per month.
Communication services will cost from 7 to 15 US dollars per month.
It is important to know that a mobile phone brought to Turkey can be used for no more than three months, after which the device is blocked by local networks. To use the phone without restrictions, you will have to buy a device in the Republic of Turkey or register your own by paying a state fee of about 1,800 Turkish liras (122 US dollars).
Property insurance in Turkey
There are two types of property insurance in the Republic of Turkey: voluntary and compulsory.
DASK earthquake insurance is compulsory. Payment of DASK is controlled by municipal authorities. In case of earthquakes, the state insurance company reimburses the losses. The cost of DASK insurance is calculated by special coefficients depending on the building’s structure and seismic activity in the region. You can calculate the cost of DASK insurance for a year on the calculator on the official website. For an apartment of 100 square metres, insurance contributions can range from 40 to 400 Turkish liras, depending on the earthquake risk category, which can be found on the interactive map.
Voluntary property insurance protects against damage associated with fires, floods, power outages, various accidents and breakdowns, including furniture and household appliances. Voluntary insurance is provided by banks and private insurance companies. Depending on the size of the maximum payout and the risks covered, the policy will cost the owner 400–830 Turkish liras per year.
How to pay utility bills in Turkey?
Electricity, water and gas bills are issued by municipal or private resource providers, so there is no uniform bill payment service in Turkey. Payments can be made at post offices, in mobile applications of Turkish banks (in the FATURA ODEMELER section) using invoice details or on the websites of those services with which contracts have been concluded. Payment details are indicated in the invoices. For example, here are links to online services of municipal establishments in Istanbul, Antalya and Alanya:
Istanbul: water, gas, electricity, council tax.
Antalya: water, gas, electricity, council tax.
Alanya: water, electricity, council tax.
Bills can also be paid through centralised payment systems such as faturaodemelisin.
An example of cost calculation
Let's calculate the costs of maintaining an apartment in Istanbul. Suppose the area of the apartment is 70 square metres. The house has gas heating with a communal (centralised) boiler, parking, swimming pool and playground. The cadastral value of the apartment is equivalent to 250,000 US dollars. For the calculation we will use the official average consumption of water, gas and electricity.
Bill | Average consumption for a family of four | Tariff | Amount |
|---|---|---|---|
Natural gas | 76 cu m | 2.79 ₤ per cu m | 212.04 ₤ per month |
Water | 15 cu m | 6.923 ₤ per cu m including drainage | 103.85 ₤ per month |
Electricity | 230 kW | 1.37 – 2.06 ₤ per kW | 370.8 ₤ per month |
Aidat | 390 ₤ per month | ||
Phone and internet services | 311 ₤ per month | ||
Property tax | (cadastral value of 250,000 $) | 0.2% | 7,375 ₤ per year |
DASK insurance | 248 ₤ per year | ||
Total per month | 2,023 ₤ (137 $) | ||
Total per year | 24,276 ₤ (1,646 $) |
Rental property owner’s expenses
If the lease agreement is concluded for a period of more than 6 months, the tenant pays utility bills. Moreover, contracts with resource-supplying organisations for water, electricity and gas are concluded in the tenant's name. Who pays aidat is discussed individually, but usually these expenses are also paid by the tenant.
Utility bills for short-term rentals are paid by the owner or management company, depending on the conditions in the management agreement.
The annual municipal property tax is paid by the owner. The property owner's tax on rental income, which is calculated at a progressive rate of 15 to 40%, should also be taken into account.
Commissions of management companies in Turkey
Since 2017, individuals have been prohibited from renting out property on a short-term basis. It is possible to legally receive income from short-term rental of residential property through a licensed management company. There are no such restrictions for long-term rentals. It is possible to independently rent out housing through a realtor and engage in management and interaction with the tenant without intermediaries or conclude an agreement with the management company.
The services of management companies in Turkey are charged differently, there are no established rules. In new residential complexes, long-term rental management services may be included in aidat and do not involve any additional fees. Antalya regional operators may charge a commission of up to two monthly rental fees. In the new districts of Istanbul, there is often a commission of 12% of rental income.
Many management companies offer owners a guaranteed rental income of 3–5% per annum, which does not depend on occupancy or seasonality. Agencies take on the trust management of property, resolve all concerns and risks, and pay utility bills, while the owner receives a guaranteed profit. In most new residential complexes, there will be no difficulties in finding a management company.
The cost of living in Turkey
According to the numbeo.com website, the cost of living in Turkey is comparable to or lower than in Bulgaria. For example, let's compare the cities of Antalya and Burgas that are both located in the coastal resort areas. According to Numbeo, living expenses (including rent) in Antalya are 7% lower than in Burgas as of August 2022.
Antalya (Turkey) | Burgas (Bulgaria) | |
|---|---|---|
Family of four estimated monthly costs, without rent | 1,248 $ | 1,659 $ |
A single person estimated monthly costs, without rent | 361 $ | 471 $ |
Monthly rent for 1 bedroom apartment in City Centre | 404 $ | 300 $ |
In Antalya, a combo-lunch of 3 courses for two people costs 17 US dollars on the average. An adult subscription for a mid-range fitness club costs approx. 20 US dollars a month. A monthly ticket for public transportation in Antalya adds another 22 US dollars. Finally, a grocery basket for 1 adult can cost approx. 40 US dollars per week. This includes such cost food products as milk, bread, rice, eggs, local cheese, beef and chicken, seasonal fruits and veggies.
Property resale taxes in Turkey
Income tax
Individuals are not required to pay income tax when reselling property if they have owned said property for more than 5 years. If the property has been owned for less than 5 years, then capital gains (the difference in cadastral value at the time of purchase and sale) are subject to income tax.
If the difference does not exceed 22,000 Turkish liras (1,500 US dollars), no income tax applies. The size of the exemption changes annually. The tax is calculated at a progressive rate from 15% to 35%. Read the detailed information about property tax rates in Turkey when selling property.
Realtor fees
The seller pays for the services of real estate agents in Turkey. When real estate is sold on the primary market, the developer pays the commission to the agency, and on the secondary market — the owner.
According to Decree No. 30442 “On Real Estate Trade”, the amount of the agent's commission in real estate transactions cannot exceed 4% + VAT on the value of the property specified in the sales contract.
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