What taxes are paid when buying an apartment in Turkey 2022 - 2023
Last Updated: 2023-09-21Taxes paid when buying an apartment in Turkey
Detailed information that the investor must know about the legal procedures in Turkey before buying any property, and the most important of these procedures are those related to the taxes that the investor usually pays when ending any real estate transaction, to see these details, the legal team of Mersat Real Estate Company prepared this article.
In this article, you will read
First of all, what are real estate taxes in Turkey?
They are in-kind amounts that are calculated on the buyer, seller, or both, paid to the Real Estate Tax Department in Turkey when buying a property or transferring its ownership, there are details of these taxes, what is the value of real estate taxes in Turkey, and when are they paid? What are their types, and are they paid once, annually, or monthly?
Before talking about real estate taxes in Turkey, we must realize that there are no additional taxes on foreigners when they buy, sell, transfer or inherit real estate in Turkey , except for those real estate taxes paid by any Turk who does the same treatment, so we recommend dealing with reliable real estate companies and not believing any external rumors in the context of this topic.
Learn about the types of real estate taxes in Turkey !
What are the one-time property taxes in Turkey?
Value Added Tax (VAT)
The value of this tax is calculated from the price of the property in the market, ranging from 1% to 18%, as the type of property, its area, the level of construction and the price per meter of the land on which the property is based are factors that affect the determination of the value of the added tax, and this value is not calculated from the total area of the property, but from the net area, and this real estate tax is paid once when buying a property in Turkey.
A brief history of this real estate tax:
For almost a year and a half, Turkey has witnessed the abolition of the added tax on foreigners who buy real estate in Turkey and convert the price of the property in dollars or euros from outside Turkey, similar to the treatment received by Turkish expatriates.
Unfortunately, this discount ended at the end of March 2019, in any case, it seems that it is highly expected that such discounts will return in later periods, as the Turks are fully aware that discounts on real estate taxes in Turkey increase the desire of foreign buyers to own real estate in Turkey.
Know the details of the real estate title deed tax (meaning the costs of registering the property in Turkey
This tax is imposed when registering title deeds, that is, when registering the title deed in the Land Registry Department in Turkey.
Its value is equivalent to 4% of the property price specified in the sales contract, the amount is usually paid by both the seller and the buyer alike, meaning that the seller must pay a real estate tax of 2% when owning a property in Turkey, and this percentage is especially for the sale of small real estate such as houses, apartments and villas in Turkey.
Also, when transferring the ownership of a property in Turkey from the owner to the legal heirs, they pay this tax within the property transfer procedure.
Municipality Tax Fees on Real Estate in Turkey
Turkish municipalities impose on real estate established within the area under the municipality's service an annual fee of (0.03%) of the property value, this tax is paid for the services performed by Turkish municipalities.
* Real estate insurance fees in Turkey against earthquakes and natural disasters, which is an annual tax paid by the property owner in Turkey to insure his home against natural disasters and earthquakes, and is equal to 2 US dollars per square meter of the property area.
What are the monthly real estate taxes in Turkey?
They are the fees paid by property owners to the company supervising the residential complex, known in Turkey as "revenues", estimated on average between $ 12 per square meter of property.
These revenues are in return for the services provided by the residential complex such as playgrounds, swimming pools and gardens, in addition to the salaries of workers, cleaning and maintenance, and security and guard staff, as the value of these fees varies from one complex to another depending on the quality of services and welfare obtained by residents in the complex, and even in single houses, i.e. those located outside the residential complexes., which does not enjoy all the services, there may be returns paid to employees cleaning stairs and corridors, or elevator costs and so on, and often this tax is very low and does not exceed $ 10 to $ 25 per month, and it is not considered a real estate tax per se, it is a routine thing of daily life requirements.
Here we show you an overview of electricity and water fees in Turkey:
There are two types of fees for electricity and water services in Turkey: the first type, this fee is paid only once when registering an electricity or water meter, and the second includes monthly bills.
Meter registration fees are paid only once, this amount is considered as a "insurance" paid when registering electricity and water meters, not as a real estate tax, it is paid at specialized official offices to regulate the affairs of these services, paid upon registration for the first time, and when transferring ownership from one person to another you also need to pay transfer fees, and the special thing about it is that these fees can be paid by tenants, if the landlord registers electricity and water services in the name of the tenant.
In conclusion, we have shown you all the real estate taxes that you have to take into account when you intend to buy a property in Turkey , and we touched on everything that interests you from the matter even the most accurate details of real estate taxes and fees , providing you with accurate information about the Turkish real estate market is our mission !
Real estate taxes in Turkey , which are paid annually:
First, there is a tax paid for real estate in Turkey called the annual real estate tax, this tax will be paid if you are a foreigner or an original citizen and from its name you know things, you must pay that tax every year once.
There is a second type of real estate tax called real estate profit tax, if you own capital and bought a property in Turkey and decided to sell it before you exceed five years from the date of its purchase, you will have to pay tax on this property in which you profited, even if you did not sell your property until after you exceed five years from the date you bought this property , you will never pay taxes on your profit in this property, and this will be in your favor in the first place, because you will be exempt from paying taxes first and the profit in your Turkish property will increase second.
Penalty for those who are late in paying real estate taxes in Turkey:
In the beginning, those who are late in paying the tax will incur a fine for each time they are late in paying, and if they are too late in paying them, this fine will increase a lot, perhaps reaching a value greater than the basic tax.
-Categories that are exempt from paying real estate taxes in Turkey:
There are exempt from paying taxes, but in a few limited cases, such as if this person owns only one property, this is considered one of those who do not have a fine, as well as relatives of martyrs, the unemployed and the disabled, but this category is conditional on certain laws in order to be exempted.
Taxes paid for real estate in Turkey on a monthly basis:
These taxes are usually present in the major residential complexes in Turkey and are paid for the many advanced services that come with the property in Turkey, and the tax paid varies from one real estate complex to another complex, there are those who provide more improvements than others, so on this principle it is relied upon to determine the tax amount that will be paid, it is true that this matter is limited to major residential complexes, but it is not without the presence of some taxes that are in real estate Small, but it is a few taxes, such as the size of those properties and according to the services provided in them.
Is it possible to evade paying his tax dues for real estate in Turkey?
The concerned authorities have proven that there are clear cases of evasion of paying taxes on real estate in Turkey, for example, providing incorrect documents that are contrary to reality and truth, and if you are really exempt from paying taxes, you must submit real and not forged correct documents.
Of the one-time taxes paid in Turkey:
One of the taxes that you must pay when buying a property in Turkey is the real estate title deed tax, and it is paid only once, this time when you sell or buy a property, and the value due for payment is about four percent of the value of the total property and you pay jointly between the buyer and the seller, this is the law imposed on it, but in reality it is the buyer who pays all the amount payable.
It turns out that paying taxes on real estate in Turkey is very normal and Turkey is not united in it alone, and the value that will be paid is reasonable and not exorbitant and unaffordable.
The types of taxes in Turkey vary according to the type of investment, for example, the investor can pay 1% or 18% value-added tax for the same property specifications, with the difference that the first property has residential specifications and the second is registered as a commercial property, so the use of a professional team such as the team of Mersat Real Estate Company is a guarantee for you to invest safely in Turkey, for legal advice you can communicate with the team of Mersat Real Estate Company through the mersat.net/en website Editing of the
Editing by Mersat Real Estate Team©
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