In Turkey the choice between a new apartment and a resale one changes your VAT bill, your paperwork and your risk. What to compare before you sign.
Turkey has a very large stock of both brand-new and second-hand apartments, and the two behave differently on cost, paperwork and risk. Because the new-build market is heavily marketed to foreign buyers, it is worth separating what is a legal difference from what is a sales pitch.
What you pay at purchase
Both routes share the same registration step, but the tax layer on top differs:
- title deed tax (tapu harcı): 4% of the declared value, normally split 2% buyer and 2% seller, though the split is negotiable
- a licensed valuation report is required when a foreigner is involved in the sale, and the report feeds the declared value (sources date this requirement to 2019)
- compulsory earthquake insurance (DASK) must be in place at transfer
- KDV (VAT) applies when you buy new from a developer, but generally not on an ordinary private resale
On the KDV rate, Turkish accounting sources agree on the main rule for projects whose building permit was issued after 1 April 2022: 10% on the part of the net area up to 150 square metres and 20% above it, with a reduced 1% rate preserved for qualifying urban-transformation housing. Older permits fall under earlier rules, so ask the developer which permit date applies and whether KDV is included in the quoted price. One industry source puts total closing costs at roughly 4 to 7% on a resale and at a much higher figure on a new build where KDV applies, but treat that as an estimate and ask for a written cost breakdown.
Safety and documents
Turkey's current seismic building code came into force on 1 January 2019, so a genuinely new building is designed to a modern standard on paper. That does not make every new building safe: quality depends on the builder, the soil and on whether the work matches the approved project. For a resale, the age of the building and the permit it was built under matter much more. In both cases check the three basics: the title deed (tapu), the building permit (yapı ruhsatı) and the habitation certificate (iskan). The Land Registry shows the ownership type: kat mülkiyeti means the building has an iskan and is legally habitable, while kat irtifakı is the interim form used while a building is still under construction.
Off-plan: where the real risk sits
Buying on plan from a developer is the cheapest way in and the riskiest. Before paying anything, check who owns the land, whether kat irtifakı has been registered, that the permit matches what is marketed, and what protects your money if the project stalls: a bank guarantee, a registered right in your favour, or a payment schedule tied to construction milestones. Reports differ on which statutory protections apply to which contracts, so have a lawyer confirm them for your contract rather than relying on the brochure.
How to choose
- choose a resale if you want to inspect the actual building, move in quickly and avoid KDV
- choose a completed new build with iskan if you want modern construction and are prepared to pay KDV
- treat an off-plan purchase as a developer-credit decision, not a property decision
- for any older building, ask about its permit date and any urban-transformation plans
FAQ
Do foreigners pay more tax than locals? The title deed tax is the same 4% for everyone. Is VAT charged on a resale? Generally not, unless the seller is a business. Is a new building automatically earthquake safe? No: a modern code exists, but compliance depends on construction quality and on the project matching its permit. What is the difference between kat irtifakı and kat mülkiyeti? The first is the registration used while a building is unfinished, the second applies once the iskan is issued. Do I need DASK insurance? Yes, it is required for the transfer.
How we help
D.H. Realting can help you compare specific new-build and resale options in Turkey and prepare the questions to ask a developer or seller. This article is general information, not legal, tax or investment advice. Tax rates, permit rules and fees change, so confirm every figure with a licensed Turkish lawyer or tax adviser before you commit.