As a property owner, the cost of living in Turkey in the long term can be lower or higher depending on your bills. However, in Turkey, it is cheaper for a property owner to pay for utilities and taxation. In addition, foreign homeowners can easily become citizens of Turkey. If you are looking to become a homeowner in Turkey, you have to know the long-term cost of living in the country. This is significantly different when you are renting an apartment for a short term.
The Cost of living in Turkey for property owners
In Turkey, all homeowners usually have lower bills to pay. This includes property taxes and usual expenditures on transportation, food, entertainment, and so on. The difference between the cost of living among regular people and property owners is the property fees and taxes. Otherwise, everybody has the same bills to pay for consumer goods and public services.
Homeowners in Turkey and their tax responsibilities
In Turkey, as a homeowner, you must pay all fees and taxes based on the type of property you have. These taxes and fees are the same for every homeowner whether you are a Turkish citizen or not. People who do not own any property in the country are exempted from paying taxes and feed. The following are the property taxes in Turkey:
These include houses and apartments. You are to pay a total tax amount of 0.1% for properties in provincial areas and 0.2% for properties in big cities. Commercial facilities: These include shops, warehouses, and offices. It comes with a 0.2% tax for properties in the provinces and an 0.4% tax for properties in bigger cities.
Land without any building permits
This comes with a 0.1% property tax for buildings in the provinces and a property tax of 0.4% for buildings in big cities. A plot of land with an issued construction permit: This comes with a property tax of 0.3% for those in the provinces and a tax of 0.6% for property in big cities.
Additional luxury taxes in Turkey
As a property owner in Turkey, you are expected to pay an additional luxury tax if your property falls within a certain bracket. This is defined below: If you have a total real estate portfolio worth between 5,250,000 and 7,870,000 Turkish Liras, you will need to pay a tax rate of 0.3%. For those whose residential properties fall between 7,870,000 and 10,500,000, they will need to pay a total tax of 0.6%. If you have a residential real estate property that has a value of about 10,500,000 Turkish Liras (1,039, 523 Euros), you will need to pay a tax of 22,500 Turkish Lira, which is a fixed amount. There is also another fee of 1% of the value for any property that is worth above the tax threshold.
Utilities for homeowners in Turkey
As a homeowner in Turkey, payment for utilities will affect the total cost of living. These include: Aidat (real estate maintenance payment): This is between 10 and 100 Euros per month. Electricity: Electricity bills can be estimated as thus – the owner of a 1-bedroom apartment can pay about 60 Euros a month. Others with more rooms will pay higher. Water: You can expect to pay about 4.75 Turkish Liras for 1 cubic meter of cold water. Also, it can cost between 3 and 5 Euros per month for one person. For a family of 3 people, the monthly fee is about 20 Euros. Gas Supply: The fee for a single gas cylinder supply is between 15 and 30 Euros. Heating: There are also heating charges, which are usually required during the winter season. Communication services: The charge for this service can be between 15 and 30 Euros per month Insurance: This includes DASK, which is known as an earthquake insurance policy. It costs between 15 and 150 Euros every year.