What are the purchase costs?

7 April 2019

There are 3 different purchase costs: First one is the purchase tax. The purchasing tax is 4% but we have an agreement with some developers whereby they pay 2% and the client pays 2% (In some projects, the developer pays the 4%).  This amount has to be paid during the transfer of the title deed. Second cost is the VAT cost, which differs from project to project. But it will be either 1%, 8% or 18%. For properties where the construction began after 2013, then VAT is 18%. All the projects we are currently selling were granted their building permission before 2013. So VAT for the majority of our projects is 1%. The only exception to this are the apartments whose net area is greater than 150m2. On these instances the VAT will be 18%.Final cost is the utility connection and habitation licence costs which is around 2,000 TL which will be paid after completion.