Owning property in Turkey is an attractive option for foreigners, whether for residential or investment purposes. However, in addition to the purchase price, property owners may face certain regular annual expenses. Knowing these costs in advance helps with proper financial planning.
One of the main expenses that property owners must pay is property tax. This tax is paid to the municipality where the property is located and is generally collected in two installments during the year. The amount of tax varies depending on the type and value of the property, as well as the area in which it is located.
Another important expense is the residential complex or building maintenance fee. In apartments, residential complexes, luxury residences, or villas within gated communities, owners pay monthly or periodic fees for the maintenance of common areas, security, cleaning, elevators, swimming pools, and gardens. These fees may be higher in complexes that offer numerous services and social facilities.
The compulsory earthquake insurance policy, known as DASK, is also an important expense for property owners. In addition, owners may choose to obtain supplementary home insurance to protect against risks such as fire, theft, water leaks, and other types of damage.
If the property is occupied, electricity, water, natural gas, and internet bills are considered part of the annual expenses. Even in unused homes, there may be certain fixed fees related to utility subscriptions. Over time, maintenance and repair costs may also arise, such as painting, plumbing work, heating-system maintenance, air-conditioning servicing, or general repairs.
If a foreign property owner rents out the property, they may be required to pay income tax on rental earnings. In this case, it can be beneficial to work with an accountant to manage the tax declaration and rental process correctly.
For foreigners who do not live in Turkey, property-management or local-representation services may be a suitable option. These services may include monitoring rental payments, paying bills, arranging maintenance work, and communicating with tenants. However, they represent an additional cost.
In conclusion, when foreigners own property in Turkey, they should consider more than just the purchase price. Annual expenses such as property tax, monthly maintenance fees, insurance, utility bills, maintenance, and rental income tax, where applicable, should also be taken into account. With proper planning, owning property in Turkey can become a safer and more sustainable investment.