Turkey Real Estate Commission Rates

Turkey's dynamic real estate market offers unique opportunities for foreign investors. However, a successful transaction requires full awareness of local laws, especially ancillary costs like real estate commissions. Conflicting information on the internet has caused confusion for many.

The goal of this comprehensive guide is to provide clear and accurate information about the legal real estate commission rates in Turkey, based on official regulations, so you can transact with confidence and avoid paying extra fees.

Table of Contents (Quick Access)

• What is the Main Law on Real Estate Commission in Turkey?
• How is the Value Added Tax (KDV) on Commission Calculated?
• Breakdown of Commission Types (Buying, Selling, Renting)
• Complete Cost Table: A Practical Example
• What Happens if the Commission is Not Paid?
• -
• Key Tips for a Secure Transaction
• Frequently Asked Questions
• Expert Consultation and Secure Transactions 

1. What is the Main Law on Real Estate Commission in Turkey?

The activities of real estate agents and their commission rates in Turkey are clearly defined by the Ministry of Trade (Ticaret Bakanlığı) within the framework of the Regulation on Real Estate Trade (Taşınmaz Ticareti Yönetmeliği).

This regulation sets a specific cap on commissions that no agency is allowed to exceed:

The maximum commission rate for property sales is a total of 4% of the total transaction value.

By law and common practice, this rate is divided equally between the buyer and the seller:

• 2% of the total property price is paid by the buyer.
• 2% of the total property price is paid by the seller.

Important Note: Any agreement to receive an amount greater than 4% is legally invalid, unless specific circumstances exist and it is documented in writing with the full consent of both parties.

2. How is the Value Added Tax (KDV) on Commission Calculated?

One of the key points that often leads to miscalculation is the Value Added Tax (KDV or VAT). This tax is added to the commission amount and must be paid.

The KDV rate in Turkey is 20% of the commission amount (not the total property price).

Example: Let's assume you are buying a property worth $300,000.

• Your Commission (2%): $6,000
• KDV Tax (20% of $6,000): $1,200
• Your final payable amount to the real estate agent will be: $7,200.

3. Breakdown of Commission Types (Buying, Selling, Renting)

Resale Property vs. New Construction Project

• Resale Property: For transactions involving second-hand properties (those with a previously issued title deed), the 4% rule (2% buyer and 2% seller) is fully applied.
• New Construction Projects: If you buy a property directly from the construction company (developer), the situation is different. In this case, the developers pay the real estate agent's commission themselves. The buyer pays no commission. This is one of the biggest advantages of buying a brand-new property.

Rental Property Commission: Law vs. Market Practice

The rules regarding rental commissions are also very clear:

• The Law: The maximum legal commission for renting a property is equivalent to one month's rent + KDV.
• Market Practice: Some real estate agents (especially when dealing with foreign nationals) request a commission equivalent to 12% of the total annual rent, which is typically slightly higher than the legal rate. This is an informal practice and has no legal basis.

4. Complete Cost Table: A Practical Example

For complete clarity, we have summarized all the main costs of a real estate transaction in the table below, using a property valued at $300,000 as an example:

5. What Happens if the Commission is Not Paid?

Paying the commission is a legal obligation. In case of non-payment, the real estate agent can take legal action, and the defaulting party may be ordered to pay the commission amount along with fines and damages.

In Case of Contract Cancellation: Even if the buyer and seller mutually agree to cancel the deal, the real estate agent still has the right to receive their commission. This amount must be paid by the party who initiated the cancellation.

6. Key Tips for a Secure Transaction

• Get a Written Contract: Never pay any money without a clear, written contract that includes all details (commission rate, property price, etc.).
• Viewing is Free: Real estate agents are not allowed to charge you money simply for showing you a property.
• Know Your Rights: The Ministry of Trade imposes heavy penalties on agents who charge more than the legally mandated commission rate.

Frequently Asked Questions

8. Expert Consultation and a Secure Transaction

Awareness of the laws is the first step toward a secure investment. However, due to legal complexities, especially for foreign nationals, it is recommended to have a reputable real estate consultant and lawyer by your side.