Reducing the Property Taxes in Turkey
Last Updated: 2022-02-17
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Turkey's property taxes system has changed again, as a part of the steps the Turkish government is undertaking to restructure the taxation system in Turkey.
Previously, the tax rate withheld when transferring real estate ownership of any property was estimated at 18% of the residential property value, which has a net area of more than 150 square meters, while the tax of properties with an area of less than 150 square meters were at 1%.
According to the new system, all properties up to 150 square meters are taxed at the rate of 8%. For properties which are more than 150 square meters are taxed at 18%.
For example: If there is a 155 square meter apartment, the property tax will be calculated at 8% for the 150 square meters, while the remaining area, i.e. the 5 square meters, will be taxed at 18%.
Another example: If a 160-square-meter apartment costs 1,600,000 TL, the price per square meter would be 10,000 TL. By calculating the 8% tax for the 150 square meters, the tax will be worth 120,000 TL, while the remaining 10 meters will be calculated at 18% i.e. 18,000 TL, and so the total tax value will be 138,000 TL. By comparing with the old system, the tax value will be at 18% for the property, i.e. 288,000 TL.
However, the property tax within urbanization areas is still at 1%
Moreover, property transfer fees which are currently estimated at 2%, are expected to be reduced.
Editing by Mersat Real Estate Team©
Reference: Hurryet
Previously, the tax rate withheld when transferring real estate ownership of any property was estimated at 18% of the residential property value, which has a net area of more than 150 square meters, while the tax of properties with an area of less than 150 square meters were at 1%.
According to the new system, all properties up to 150 square meters are taxed at the rate of 8%. For properties which are more than 150 square meters are taxed at 18%.
For example: If there is a 155 square meter apartment, the property tax will be calculated at 8% for the 150 square meters, while the remaining area, i.e. the 5 square meters, will be taxed at 18%.
Another example: If a 160-square-meter apartment costs 1,600,000 TL, the price per square meter would be 10,000 TL. By calculating the 8% tax for the 150 square meters, the tax will be worth 120,000 TL, while the remaining 10 meters will be calculated at 18% i.e. 18,000 TL, and so the total tax value will be 138,000 TL. By comparing with the old system, the tax value will be at 18% for the property, i.e. 288,000 TL.
However, the property tax within urbanization areas is still at 1%
Moreover, property transfer fees which are currently estimated at 2%, are expected to be reduced.
Editing by Mersat Real Estate Team©
Reference: Hurryet
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