العربية
Property Taxes in Turkey:
- These are a set of fees imposed by Turkey on anyone buying, selling, gifting, inheriting, or transferring property.
- Property taxes in Turkey consist of several types, and there are taxes that must be paid both at the time of purchasing.
- the property and others that are paid monthly and annually after owning the property.
Title Deed Fees in Turkey:
- These are mandatory fees paid when transferring ownership of a property from one person to another.
- Title deed fees in Turkey are set at 4% of the declared property value specified in the title deed document.
- This tax is typically divided between the seller (2%) and the buyer (2%). However, it is common for the entire burden to fall on the buyer.
- For example, if the property is valued at $200,000, the title deed transfer fee would be $8,000.
In some cases, certain municipalities announce exemptions for buyers from title deed fees in their region.
This is done to promote the reconstruction and real estate development of the area. Examples of such municipalities in Istanbul are Kadikoy and Kagithane.
Some Turkish construction companies offer real estate projects with complete exemption from title deed fees, meaning the company bears.
the entire 4% of the property value.
Notarization Fee for Purchase Contracts:
- After signing a real estate purchase contract in Turkey between the seller and the buyer, the contract must be notarized to gain legal status.
- This is done by submitting it to the Turkish notary (public notary). Both parties can then present the notarized contract to the judiciary in case.
- either party violates any agreed-upon terms. The fee for notarizing a property purchase contract in Turkey is 1% of the property’s value.
Value Added Tax (VAT) in Turkey:
- Known as KDV, this tax is imposed on all products sold in Turkey, covering commercial, industrial, and free trade activities, as well as imported goods and services.
- For commercial properties, the VAT rate is 18% of the property value. Residential properties have varying VAT rates based on their size, regardless of their location.
- If the property is 150 square meters or less, the VAT is 1%. For properties larger than 150 square meters, the VAT is 18% for each additional square meter.
Real Estate Profit Tax:
- This tax is imposed on properties intended for sale within a period of less than 5 years from the date of purchase.
- The law considers such properties sold within this timeframe as being sold for investment purposes, thus subjecting them to real estate profit tax.
- This tax is governed by Article 80 of the Turkish Income Tax Law, and it is determined based on the difference in profit between the property’s purchase and sale prices.
Luxury Real Estate Tax:
- Known as “Değerli konut vergi,” this tax is imposed on properties in Turkey with a value exceeding 5 million Turkish liras.
- According to Law No. 7194 and amendments to Property Tax Law No. 1314, this tax applies to properties that meet the specified conditions since the beginning of 2020.
Inheritance Tax on Real Estate:
- In the event of the owner’s death, inheritance tax is imposed on the property. The legitimate and legal heirs of the deceased property.
- owner must pay the inheritance tax to transfer the property from the deceased to the heirs. The inheritance tax in Turkey ranges from 1% to 10%.
- depending on the residence status of the heirs and the property’s location.
Annual Real Estate Tax:
- The annual real estate tax is set at 0.002% of the property’s registered value in the title deed and is paid in two installments.
- The first installment is paid between the first and last day of March each year, and the second installment is paid between the first and last day of October.
- This tax is paid to the municipality where the property is located, either by visiting the municipal office or through a bank transfer to the municipality’s bank account.
- For a property valued at $200,000, the annual tax would be $400.
Monthly Real Estate Tax:
- This tax is paid to the management of residential complexes in Turkey for services provided to residents, including reception, security, cleaning, maintenance, pools.
- Turkish baths, saunas, meetings, events, playgrounds, gardens, landscaping, and other governmental facilities.
