What taxes are paid when buying an apartment in Turkey 2020 - 2021

What taxes are paid when buying an apartment in Turkey 2020 - 2021

Last Updated: 2022-07-20
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Taxes to be paid when buying an apartment in Turkey

We will provide you with details that are important to you if you want to enter the real estate market in Turkey for the purpose of buying a property or investment, and we will provide you with a lot of information that you must be familiar with, including real estate taxes: 

First, what are real estate taxes in Turkey? 

They are in-kind amounts that are calculated by the buyer or seller, or both, that are 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 its types? Is it paid once, annually or monthly? 

Before talking about real estate taxes in Turkey, we must realize that there are no additional taxes for foreigners when they buy, sell, transfer or inherit real estate in Turkey, except for those real estate taxes that are paid by any Turkish who performs the same treatment, so we recommend dealing with reliable real estate companies. And not to believe any external rumors in the context of this topic. 

Learn about the types of real estate taxes in Turkey! 

 الضرائب  عند شراء شقة في تركيا

What are the one-time real estate taxes in Turkey? 

Value-added tax 

The value of this tax is calculated from the price of the property in the market, its percentage ranges from 1% to 18%, according to the type of the property, its area, building level and the price per square meter of the land on which the property is based all of these are factors that affect the determination of the value of the added tax, and this value is not calculated from the total property area but from the net area, and this real estate tax is paid for one time when buying a property in Turkey. 

An overview of the recent history of this real estate tax: 

For nearly a year and a half, Turkey has witnessed the abolition of the added tax for foreigners who buy real estate in Turkey and transfer the price of the property in dollars or euros from outside Turkey, similar to the treatment received by Turkish expatriates. Unfortunately, however, this discount ended at the end of March 2019, however it seems that it is widely 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 Real Estate Registry Department in Turkey. Its value is equivalent to 4% of the price of the property specified in the sales contract, the amount is usually paid by both the seller and the buyer alike, meaning that the seller has to pay a real estate tax of 2% when owning a property in Turkey, and this percentage is especially for small real estate sales such as houses, apartments and villas in Turkey. Likewise, when transferring ownership of a property in Turkey from the owner to the legal heirs, they pay this tax as part of the ownership transfer procedures. 

Municipal tax fees for 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 in exchange for the services provided by the Turkish municipalities. 

Fees for insurance of real estate in Turkey against earthquakes and natural disasters:

it is an annual tax that the property owner in Turkey pays to insure his home against natural disasters and earthquakes, and it is equal to $ 2 per square meter of the property's area. 

ضرائب عقارات تركيا

What are the monthly real estate taxes in Turkey? 

They are the fees paid by property owners to the company that supervises the residential complex, known in Turkey as “returns”, estimated at an average between $ 1-2 per square meter of the property. These revenues correspond to the services provided by the residential complex, such as playgrounds, swimming pools, and gardens, in addition to workers’ salaries, cleaning and maintenance, and security and guard staff. Outside the residential complexes, which do not have all the services, there may be returns that you pay to the employees who clean the stairs and corridors, or the costs of the elevator 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 limit. They are a routine part of everyday life. 

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 an "insurance" that is paid when registering electricity and water meters, and not as a real estate tax. It is paid at official offices specialized in organizing these services. It is paid upon registration for the first time, and upon transfer of ownership from one person to another also needs to pay transportation fees, and the distinctive thing is that the tenants can pay these fees, if the property owner registers the electricity and water services in the name of the tenant. 

In conclusion, we have shown you all the real estate taxes that you must take into account when you intend to buy a property in Turkey, and we have touched on all that matters to you even the most accurate details of real estate taxes and their fees. Providing you with accurate information about the Turkish real estate market is our mission! 

Real estate taxes in Turkey, which are paid annually: 

Firstly, there is a tax paid on real estate in Turkey called the annual real estate tax, this tax will be paid if you are a foreigner or a native citizen, and from its name you know that you must pay that tax every year. 

There is a second type of real estate tax and it is called real estate profits tax, so if you own a capital and bought a property in Turkey and decide to sell it before it exceeds five years from the date of its purchase, then you will have to pay tax on this property that you profited from. And if your property is not sold, except after it exceeds five years from the date of your purchase of this property, you will not pay taxes on your profit in this property at all, and this will be in your favor in the first place; because you will first be exempt from paying taxes and second the profit will increase in your Turkish property. 

Penalty for late paying of property taxes in Turkey: 

In the beginning, the one who is late in paying the tax will have a fine for each time he is late in paying it, and in the event that he is too late to pay it, this fine will increase greatly, and it may reach a value greater than the basic tax. 

Categories that are exempt from paying real estate taxes in Turkey: 

There are categories of people exempted from paying taxes, but in a few limited cases, such as if this person only owns one property, this is considered one of those who are not penalized, also relatives of martyrs, the unemployed and the handicapped, but this category is not conditional on certain laws in order to be exempted.  

Taxes that are paid on the property in Turkey on a monthly basis: 

Usually these taxes are present in major residential complexes in Turkey and are paid in exchange for the many advanced services that come with the property in Turkey. The tax that is paid from a real estate complex to another complex varies, and there are those who offer more improvements than others, so on this principle the tax amount is approved. It is true that this matter is limited to large residential complexes, but the matter is not totally free of some taxes for small real estate, however, they are small taxes in accordance with the size of those properties and according to the services provided in them. 

Is it possible for a person to avoid paying his tax dues for real estate in Turkey? 

The concerned authorities have proven that there are clear cases of evasion from paying taxes on real estate in Turkey, for example submitting incorrect proofs that are contrary to reality and the truth, and if you are really exempt from paying taxes, then you must present true and not forged documents. 

One-time taxes in Turkey: 

One of the taxes that you have to pay when buying a property in Turkey is the real estate title deed tax, and it is paid only once when you sell or buy a property. The value due for payment is about four percent of the total property value and it is shared between the buyer and the seller; this is The law imposed on it. However, in reality, the buyer is the one who pays all the amount due. 

It becomes clear to us that paying taxes on real estate in Turkey is a very natural matter that Turkey is not the only country imposes, and the value that will be paid is reasonable, not exorbitant, and unaffordable.

 

Editing by Mersat Real Estate Team©


 

Last Updated::2022-07-20

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