How to Calculate Real Estate Commission in Türkiye
Region: TürkiyeHesaplayıcı3 min read
Short answer
Real estate commission in Türkiye is at most 4% of the sale price, or one month's rent on a rental; both caps exclude VAT, which is added at 20%. Unless agreed otherwise, the parties pay equal halves. For example, the cap on a 5,000,000 TRY sale is 200,000 TRY, 240,000 TRY with VAT, or 120,000 TRY per party.
Formula
commission = sale price (or monthly rent) × total rate
VAT = commission × 20%
total with VAT = commission + VAT
payment per party = commission / 2 × (1 + 20%)
- sale price or monthly rent: the amount without VAT
- total rate: the rate both parties pay together. Under art. 20 of the Regulation on Real Estate Trade it is at most 4% on a sale and at most 100%, one month’s rent, on a rental.
- 20%: the general VAT (KDV) rate (Presidential Decree 7346, since 10 July 2023)
- payment per party: what one party pays with VAT when the fee is split equally. The parties may agree in writing on another split.
Step-by-step example
A home sold for 5,000,000 TRY, the legal cap, an equal split:
- Total rate: the cap of 4%.
- Commission: 5,000,000 × 4% = 200,000 TRY.
- VAT: 200,000 × 20% = 40,000 TRY.
- Total with VAT: 200,000 + 40,000 = 240,000 TRY.
- Payment per party: 100,000 + 20,000 = 120,000 TRY. The buyer and the seller each pay this amount.
4% is the total, not the rate per party
A common mistake is to charge 4% to the buyer and 4% to the seller. The cap is the total of both parties: with an equal split, the buyer pays 2% and the seller 2%. You can agree on a lower rate but not on a higher one. If the parties agree on a total of 3% for the same sale:
- Commission: 5,000,000 × 3% = 150,000 TRY.
- VAT: 150,000 × 20% = 30,000 TRY.
- Total with VAT 180,000 TRY, or 75,000 + 15,000 = 90,000 TRY per party.
Commission on a rental
On a rental the cap is one month’s rent without VAT. For a home with a monthly rent of 30,000 TRY:
- Commission: 30,000 × 100% = 30,000 TRY.
- VAT: 30,000 × 20% = 6,000 TRY.
- Total with VAT 36,000 TRY. If the landlord and the tenant split it equally, each pays 15,000 + 3,000 = 18,000 TRY.
Maximum commission by sale price
The legal cap, an equal split:
| Sale price | Commission | VAT | Total with VAT | Per party |
|---|---|---|---|---|
| 2,000,000 TRY | 80,000 TRY | 16,000 TRY | 96,000 TRY | 48,000 TRY |
| 5,000,000 TRY | 200,000 TRY | 40,000 TRY | 240,000 TRY | 120,000 TRY |
| 10,000,000 TRY | 400,000 TRY | 80,000 TRY | 480,000 TRY | 240,000 TRY |
Under the regulation the fee is earned when the sale is registered at the land registry or the lease is made. The title deed fee and the land registry service fee are not part of the commission; they are paid separately.
Worked example: The legal maximum on a 2,000,000 TRY sale
Total commission (with VAT)
96,000 TRY
- Total commission (without VAT)
- 80,000 TRY
- VAT (KDV)
- 16,000 TRY
- Commission per party (without VAT)
- 40,000 TRY
- VAT per party
- 8,000 TRY
- Payment per party (with VAT)
- 48,000 TRY
- Total rate applied
- 4.00%
Step by step
Total rate applied
commission rate ≤ legal cap (4%)
commission rate = 4% = 4.00%
Total commission (without VAT)
commission = sale price × commission rate
commission = 2,000,000 × 4% = 80,000
VAT (KDV)
VAT = commission × 20%
VAT = 80,000 × 20% = 16,000
Total commission (with VAT)
total with VAT = commission + VAT
total with VAT = 80,000 + 16,000 = 96,000
Payment per party (with VAT)
per party = commission / 2 × (1 + 20%)
per party = 40,000 + 8,000 = 48,000