Types of real estate taxes in Turkey
Those wishing to own property in Turkey are interested in learning about the types of real estate taxes in Turkey, and this is so that they complete all official legal procedures when purchasing any property. Usually, these taxes are paid when completing any real estate deals in Turkey, at a time when Turkey is witnessing an increase in demand from Investors buy real estate of all kinds, so in this article we will learn about the types of real estate taxes in Turkey.
Real estate taxes in Turkey when buying a property
There are many taxes that investors must pay, which are required to be paid at certain periods of the year by the assigned real estate owners, and these taxes are determined and matters related to them are determined by the provisions of Real Estate Law No. 1319 in Turkey, and the property owner must pay taxes regularly Below, we learn about the types of real estate taxes in Turkey:
Title deed transfer tax. Tapu fees
The value of the title deed transfer tax is about 4% of the total value of the property included in the sale contract, and this tax is imposed when registering the property’s title deeds in the Land Registry Department, in addition to that this tax is paid equally between the old owner of the property, i.e. the seller , and the new owner of the property, i.e. the buyer, and the tax is paid at the moment the ownership is transferred, as well as when the property is inherited, and then this tax is on the beneficiaries of the property, i.e. the royal family.
Value added tax
It is a tax on commercial real estate, and it is considered one of the types of real estate taxes in Turkey that is paid once, and its value ranges from 1-18% of the total value of the property, and it is paid after the completion of the ownership procedures, and its percentage is determined based on a set of criteria, which are: Geographical location , type of property, price per square meter. And when talking about the method of obtaining a tax exemption upon receiving the title deed, it was done according to several conditions, namely: the investor should not be a resident of Turkey, not own a business or own a company, and not be a holder of a residence permit that is still valid, in addition to transferring funds. From abroad, any of the other currencies and other conditions, but this exemption has been canceled since 2019.
Contract fixing tax at the noter
The tax for fixing the contract at the noter is one of the most important real estate taxes in Turkey, as it is paid after signing the purchase or rental contract between the owner and the buyer, and through this tax the documentation of the contract is guaranteed, and this tax amounts to 270 Turkish liras, and this fee is a certification For the contract at the noter, and this tax is considered one of the most important taxes that must be paid in order to preserve the rights.
Real estate appraisal tax
Real estate appraisal costs in Turkey range between 1,000-2,000 liras, and they are paid directly to the real estate appraisal department, and no one is allowed to share the details of the official process through which the property is evaluated or to issue an ownership report through real estate agents, and the preparation of this report It usually takes six days in Istanbul, while in the rest of the Turkish cities it may take only three days.
Earthquake insurance tax – dask
Earthquake tax is included in the types of real estate taxes in Turkey, and the value of this tax is determined based on the proximity of the property or its distance from those areas that are considered earthquake areas, and this is done according to the regulations specialized in earthquake insurance for residential real estate, and Turkey is divided into five regions according to this regulation There are about 15 rates that differ according to the region and the determinants of its proximity or distance from the danger, while there are other criteria for determining this tax, which is the type of construction in real estate, and the different types of real estate.
Real estate taxes in Turkey when owning a property
Those wishing to invest and buy real estate in Turkey must pay real estate taxes in Turkey at the specified times, and this is so that all their ownership and investment procedures are completed correctly, and among the types of real estate taxes in Turkey are the taxes that are paid during ownership, which are:
Annual property tax: According to the tax law in Turkey, the property tax is paid in two installments during the year, each payment equal to the second, and the first payment is in March, April and May, while the second payment is during November of the same year, and there are cases It is exempted from the annual real estate tax.
Monthly tax for services or returns: The service tax and monthly returns for real estate in Turkey are those funds that are paid on a monthly basis to the complex in which the property is located, in exchange for social, health or entertainment services, in addition to bills and others.
Real estate taxes when selling a property in Turkey
When selling a property in Turkey, there are taxes that must be paid to the specialized authorities, and these taxes are represented in the real estate profit tax, which is the tax that occurs after purchasing the property and then having a desire to sell it before 5 years have passed since the owner received the title deed for the property, and this Based on Article No. 80 of the Income Tax Law in Turkey, as for real estate that is purchased during the construction period, the five years are calculated starting from the date on which the property title is received.
Inheritance tax on the property
The inheritance tax on real estate is one of the most prominent types of real estate taxes in Turkey, and its rate varies between 1-10%, and this is determined according to the residence of the inheritor, in addition to the geographical location of the property, at a time when the inheritance tax is considered low in Turkey when compared to European countries within The European Union, and it varies based on the value of the property owned by the investor, and it is deducted in a lower percentage whenever real estate prices decline in Turkey.
Real estate gift tax
The real estate gift tax is one of the types of real estate taxes in Turkey, and its rate ranges between 10-30% of the estimated value, while it is calculated progressively as in the inheritance tax, with regard to real estate that is owned and obtained as a kind of gift.