Taxes in Turkey are among the things that foreigners in Turkey are most asked about and inquired about, especially.

Find out all about real ...

Date:

Thursday, September 23, 2021

Taxes in Turkey are among the things that foreigners in Turkey are most asked about and inquired about, especially.

Find out all about real estate taxes

Taxes in Turkey are one of the things that foreigners ask about and inquire about in Turkey, especially Arabs, but what distinguishes the tax system in Turkey
Turkey, foreigners are equal with Turkish citizens in the amount of tax they pay. This is to encourage investment within the country.
Learn with us in this article everything related to taxes related to real estate

What are the property taxes in Turkey?

They are cash amounts to be paid either when purchasing a property and transferring its ownership, or in exchange for certain services and insurances related to the property.

Types of taxes in Turkey

First: One-time real estate taxes:

Real estate value tax:

It is a one-time tax that is paid when buying a property, with a value ranging from 1 to 18% of the property's market price, and it is collected on homes that are sold for the first time, and it is included in the price of the property, and this tax is paid by the company that creates the property for one time.

Real estate title deed tax and other related fees:

The real estate title deed tax is a tax that is paid when registering the property in the Real Estate Registry Department in Turkey, and its value is equivalent to about 4% of the property price in the market. It is paid equally between the seller and the buyer {2% on the seller and the same on the buyer}. It is also necessary for the heirs, when carrying out the procedures for transferring ownership of the property, to pay the value of the previous tax.

In addition to the title deed tax, there are other fees to be paid when carrying out the procedures for transferring ownership of the property, including:

Notre Fee.

Sworn translator fees.

Real Estate Gains Tax:

It is a tax that the seller must pay when he sells a property that has not been owned for five years, but if the period of ownership of the property exceeds the five-year barrier, this tax is canceled. The value of this tax ranges from 15 to 35% of the declared net profit when selling the property.

Second: Real estate taxes that are paid periodically:

Taxes paid each year:

including:

Earthquake and natural disaster insurance fees: The Turkish state is obligated to compensate property owners affected by earthquakes and natural disasters with amounts that may reach up to 150,000 Turkish liras, and in return real estate owners pay a small mandatory annual insurance fee ranging between 35 and 250 Turkish liras depending on the area of the property.

Municipal taxes: It is a tax paid to the municipality that belongs to the property in two installments during two different periods of the year, and the value of this tax is equal to 2 per thousand of the value of the property registered on the title deed, in exchange for the services provided by the municipality.

Taxes paid every month:

including:

Water and electricity taxes: Water and electricity fees include a one-time fee when registering for water and electricity meters for the first time, at a value of $150 for electricity and $200 for water. Fees are also paid for each property transfer procedure in smaller amounts.

As for the monthly fees for water and electricity, they depend on the amount of monthly consumption, as the price of one kilowatt of electricity is 0.11 US dollars, and the price of a cubic meter of water is about 0.85 US dollars.

Residential complex taxes: which are fees paid on a monthly basis in favor of the real estate company supervising the housing complex, also called revenues, in exchange for the various services provided by this company, such as swimming pools, gardens, building security, surveillance cameras, cleaning and maintenance of building facilities, and Other services, and the value of these fees varies from one residential complex to another, depending on the quality of the services available, but they are generally low-cost, starting at $25 per month, depending on the area of the apartment and the services of the complex, and any building that includes a group of apartments can include a commission A building that provides services for a monthly fee, like the committee supervising the housing complex.

Calculating the annual property tax in Turkey

The annual tax value on real estate in Turkey is calculated based on the value declared upon purchase, which is determined by the title deed - title deed, and is according to the following segments:

Residential real estate: 0.1%.

Commercial real estate: 0.4%.

Land with permission to build commercial buildings: 0.6%.

Agricultural land: 0.2%.

Exemption from real estate tax in Turkey

The residential properties listed below are exempted from the Valuable Housing Tax, even if the value conditions are met:

All apartments in Turkey that are owned by departments and departments with a private or public budget, municipalities, universities, and the Presidency of the Housing Department are exempted from the value housing tax, or have the right to use them.

For those who own more than one property, fulfilling the terms of the assignment of the valuable housing tax within the borders of the Republic of Turkey, the smallest real estate that meets the terms of the assignment is exempted, provided that it is a single home for the owner or the owner of the person who has the right to use it.

The owner of the lowest value share in the real estate that meets the tax conditions is also exempted, if his share in the real estate is his only residence.

All real estate owned by foreign countries, and used as residences for ambassadors and consulates, are exempted from the value housing tax, as well as residences owned by international institutions operating within the borders of the Republic of Turkey are exempted from this tax.

Residential real estate in Turkey that is under construction and is under the custody of companies operating in the construction sector, and has not been sold or owned for the first time, including residential real estate obtained by the contractor in exchange for a construction undertaking, (provided that these residential real estate is not rented, or used in any way).

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