Real Estate Tax in Turkey
People who want to own a property in Turkey, or invest in the real estate sector in Turkey, should know all the laws related to real estate, including the real estate tax law in Turkey. In this article, we will talk about real estate taxes in Turkey, their forms, how to pay them, etc..
An introduction:
It is essential for any investor to know the legal materials related to real estate tax in Turkey because the issue of taxes is no less important than other issues related to investments, including buying and selling for any purpose.
The tax system is a global system, so it is applied in Turkey, but it has a lighter impact on investors. Moreover, the tax system in Turkey is based on the principle of equality between Turkish citizens and foreign investors in the value imposed on the property. And that is a result of the keenness of the Turkish state to motivate foreigners to invest in Turkey.
Real estate tax concept in Turkey:
It is a payable fee of different percentage and duration, imposed by Turkish laws in a specific amount on real estate owners according to its value. Since the real estate tax starts from the stage of buying, selling and transferring ownership.. The buyer is obligated to pay the property transfer fees in Turke.. And the payment may be agreed between the seller and the buyer.
Types of real estate tax in Turkey:
There are several types of property fees and taxes in Turkey, including:
Value added tax on real estate in Turkey:
The value added tax on real estate is based on several considerations, which are:
- The type of real estate in addition to the form and type of investments.. Because the type of the investment plays a role in raising or lowering the value of the property and its added tax.
- Moreover, the nature of the geography and the area of property determines the value of the added tax.
- In addition, the average of the property price varies from place to place in Turkey;
Therefore, the determination of the added value varies according to the price per square meter specified in each region. It is worth noting that the percentage of paying the added tax for the property varies starting from 1% according to the estimates, as mentioned above.
Tapu Transfer Tax:
Transfer tax is payable when the property is transferred from one person to another, due to its sale. When issuing the title deed in Turkey that proves the transfer of ownership.. Both the seller and the buyer are legally required to pay tax (transfer of title). The property transfer tax is 4% of the property value specified in the contract.
Additionally, the property transfer tax law in Turkey stipulates that the seller and buyer are obligated to pay it equally. However, the content of the sales contract may specify one party obligated to pay the property transfer tax, and the party is usually the buyer.
Annual real estate tax in Turkey:
The value of the annual real estate tax is estimated, according to the value recorded at the time of purchase, which is recorded in the title deed. On average, for apartments within residential complexes, the annual tax per square meter is 3 Turkish lira and varies according to location, area and services. The real estate tax is paid once annually in the municipality of the area to which the property belongs.
Earthquake insurance in Turkey:
The earthquake insurance tax in Turkey is divided into two parts:
- The mandatory earthquake insurance that the buyer obtains in the event of purchasing a new property.. Regardless of type, and buyer can not get water, electricity or gas without it.
- Non-compulsory earthquake insurance is like the other types of insurance in all countries, in the event of disasters.
In the event of not obtaining earthquake insurance, which includes many disasters other than earthquakes, there will be no party to pay the damage that may occur to the property.
Real estate profit tax in Turkey:
The real estate profit tax falls on the property owner or investor who resells the property in Turkey. He has to pay it, if the owner sells his property before 5 years have passed since his purchase.
If the period exceeds 5 years since the purchase of the property, he will be exempted from profit tax. The estimate of the real estate tax rate varies according to the differences in the profits of each property.. In addition to what is estimated by the Real Estate Registry Department in Turkey.
Monthly service fees for real estate in Turkey:
Monthly fees in Turkey, known (revenues), are paid by property owners to the supervisors of the residential complex. These monthly fees are paid for the services like the recreational and vital facilities.. Such as gardens and swimming pools in addition to the wages of cleaners, maintenance workersand guards in the residential complex.
Furthermore, the value of these fees may change from one residential complex to another depending on the nature of the services.
How are real estate taxes paid in Turkey:
The owner can pay taxes and fees by reviewing who is responsible for the tax such as the municipality, the tax directorate in Turkey, and others.
How to pay real estate taxes in Turkey:
- Assigning an approved real estate company to conduct all the legal and administrative transactions.. Including paying real estate tax in Turkey. Because relying on a real estate company makes procedures easier for the real estate owner. It is worth noting that we at Ebla Real Estate, are fully prepared to follow up on all legal affairs of real estate in Bursa.
- Opening a bank account belonging to a Turkish bank. Thus, the owner can pay some of his bills and taxes easily.
Notes about real estate taxes in Turkey:
If the owner delays in paying the real estate tax , there will be a fine.
The real estate tax belongs to official bodies such as the municipality, the Land Registry Department, and the Tax Department in Turkey.
Thus, we have presented an important explanation about real estate tax in Turkey.
Edited by: Ebla Group Real Estate
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