Fethiye, and specifically Fethiye Hills, a real estate haven due to its thriving tourism sector situated on the southwestern part of the turquoise coast of Turkey, is a town that has witnessed hundreds of tourists keen on buying property. With all its attractive amenities, stunning beaches, Mediterranean lifestyle, and culture infused with history and advanced technology, it is not only tourists that have set foot in Fethiye; property owners have also come into the picture. Therefore, one of the first things that property buyers in Fethiye inquire about is: “Do they have to pay a property tax, and if yes, how much?”
If you are planning to buy a house or an apartment in Fethiye, you need to get acquainted with the property purchasing tax system in Turkey, especially in this picturesque region. Many factors determine property tax obligations in Fethiye, and it is important to understand them so you can invest more efficiently.
Property Tax Rate in Fethiye
In Turkey, property tax rates vary depending on whether the region is a metropolitan municipality or a middle-sized or non-metropolitan area. Fethiye falls under the latter category, and as a result, property tax rates here are comparatively lower than those of major cities like Istanbul or Ankara. The property tax rates in Fethiye are as follows:
Residential Assets:
- 0.2% of the assessed market value of the property, including land and improvements.
Commercial Properties:
- 0.4% of the assessed value of the property, including land and any improvements.
Land (Not Developed):
- 0.2% of the assessed value of the property, including the unimproved lot and any improvements other than buildings.
Farmland:
- 0.1% of the assessed property value.
These base rates are applied annually. For example, if a residential house owned and occupied by the taxpayer in Fethiye has a market value of 1,000,000 TRY, the annual property tax owed by the property owner would be 2,000 TRY (0.2% of the assessed market value).
How Do Property Valuations Work?
The property tax that the owner shoulders in Fethiye depends on the assessed value of the property. The local municipality ensures this through periodic assessments. The assessed value often aligns with the market rate but can sometimes be lower. Every four years, municipalities conduct evaluations, which means that property values and the taxes they attract may increase after each assessment cycle.
If you are going to invest in a real estate property in Fethiye, you can also utilize the expertise of professional independent valuers who will provide an accurate estimation of the market price and any differences in valuation.
Other Costs to Think About
In addition to property tax, there are broader costs involved when buying real estate in Fethiye:
Title Deed Transfer Fee (Tapu Harcı): This fee is paid once during the transfer of ownership of the property and is 4% of the declared property value. Typically, this cost is split between the buyer and the seller, unless otherwise agreed upon.
Capital Gains Tax: If you decide to sell your real estate in Fethiye within five years of acquiring it at a profit, you will need to pay capital gains tax on the profit. The tax rate varies based on the profit earned, but it is not applicable for those who sell the property after holding it for five years.
DASK (Compulsory Earthquake Insurance): All property owners in Turkey are required to purchase earthquake insurance. The cost depends on the size and type of the property, but for a typical Fethiye apartment, it is usually between 150 to 250 TRY per year.
Annual Property Maintenance Fees: These fees cover the maintenance of amenities like swimming pools, gardens, and security, especially if you own a house in a compound. They also include shared amenities such as beach loungers or community areas.
Conclusion
Fethiye’s coastal beauty and comparatively low property tax rates make it an attractive choice for both Turkish citizens and foreign investors looking to purchase property. Although property in Fethiye is subject to taxation, it is not as heavily taxed as properties in metropolitan cities in Turkey. Whether you are looking for a home or a business investment, Fethiye offers excellent opportunities for real estate investment.
Interested in Buying Property in Fethiye?
If you’re considering buying property in Fethiye, Aegean Locations is here to help you navigate the process, from understanding tax obligations to selecting the perfect property. Whether you’re looking for a cozy apartment or a spacious villa with stunning views, we have a wide selection of properties to suit your needs. Contact Aegean Locations today to begin your journey to owning a property in this beautiful part of Turkey.