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Real estate taxes in Turkey

 

Real estate taxes in Turkey:

Taxes are certain amounts paid by the seller or the buyer or both when transferring the ownership of any property to the Real Estate Tax Department in Turkey. Its details vary with the different types. Tax is one of the most important things an investor should know before making any purchase. The Turkish tax system is distinguished from others because it equals the Turkish citizen and the foreign investor in terms of the tax amounts that are paid, with the aim of encouraging investment in Turkey.


Types of real estate taxes in Turkey:

There are many types of taxes in Turkey, and they are classified as follows.

  • One-time taxes.

Three taxes fall under this heading:

- Value Added Tax: This tax is based mainly on the type of property, and the area in which it is located determines the value of this tax, its value ranges between 1% - 18%, so that the type of property and the price per meter squared on the land on which the property is built, and the level of this All real estate affects the value of the added tax, and its value is calculated according to the net area of ​​the real estate and not from its total area.

For foreigners, they are exempt from VAT if they transfer the amount in dollars or euros from outside Turkey.

- Transfer of ownership tax: When the ownership of any property is transferred from one person to another in the event of sale or otherwise, it will result in the payment of the transfer tax, and the issuance of a new title deed in the name of the buyer.

The value of the property transfer tax is 4% of the agreed property price. It is shared by both the seller and the buyer, but it is customary in Turkey that the buyer is responsible for it alone, in case it is not agreed upon.

- Real estate registration tax: Each buyer must register the property he purchased in the Land Registry Department. He must pay a specific amount, this amount is the registration tax, and it is 3% of the value of the property.

This tax is also paid in the event of transfer of ownership to the heirs.


  • annual taxes.

Real estate profit tax in Turkey: Also called income tax, it is obligatory for the investor if the property is resold, and it is paid within the first five years from the date of purchasing the property.

The profit is calculated on the basis of the value at which the property was purchased and the price at which it was sold. The tax rate depends mainly on the selling price. If the profit is less than 6000 TL, its value is 20%. But if the profits amount to more than 140,000 Turkish liras, the value of the tax can reach 45%, according to the Land Registry Department.


Earthquake insurance tax: a tax paid to insure the property from earthquakes and natural disasters, and its value is estimated at $2 per square meter of the property's area.


The annual tax value on real estate in Turkey is calculated according to the value at which the property is purchased and determined by the title deed. It is divided into:

Commercial real estate: 0.4%.

Residential real estate: 0.1%.

Land with permission to build commercial buildings: 0.6%.

Agricultural land: 0.2%.

These taxes are only for foreign investors, as Turkish citizens are exempt from annual taxes.


  • monthly taxes.

It is a fee paid by residents of residential complexes, estimated at an average value of $21 per square meter of the real estate area, and the value of these fees varies from one complex to another, depending on the services it provides and the luxury that its residents receive. These fees (revenues) are for the services provided by the residential complex, such as swimming pools, playgrounds, gardens, salaries of employees and security guards…..

 There may be a small fee for homes outside the complexes, and this goes to the cleaning and maintenance staff, often its value is very low, about $ 15 per month.


In the event of a delay in paying taxes beyond their specified dates, penal penalties are imposed against the property owners. The penalties are a fine that escalates as the amount of delay increases.

To facilitate payment procedures, the Turkish state has established government applications through which taxes can be paid.



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