Real estate taxes: Chile and Turkey

When choosing a country for real estate investment, it’s crucial to consider not only property prices but also associated costs, including taxes and fees. Let’s compare two destinations: Chile and Turkey.

Transaction conditions when buying from a developer

In Turkey, when purchasing property from a developer, a technical passport (Iskan) is required. Its cost ranges from $1,000$ to $2,500 depending on the property. This procedure helps verify the legal compliance and technical specifications of the real estate.

In Chile, a similar document is not required, simplifying this step of the transaction.

Buying property under construction

In Turkey, purchasing property during the construction phase requires notarial certification of the contract (1% of the value) and payment of a government fee for issuing the title deed (tapu) — $112. This provides additional legal protection for the transaction.

In Chile, buying property under construction is possible without paying taxes or fees, partially reducing initial costs for the investor.

Buying existing property

In Turkey, the same rules apply when buying existing property: notarial certification and a government fee for registering property rights.

In Chile, when registering real estate on the new owner pays tax - about $100-120 at the cost of the object of $180-200 thousand, which makes registration economically more viable.