Priority real estate taxes when buying property in Turkey
Taxes and fees related to buying property in Turkey are low when compared to other European countries such as France and the United Kingdom and the United States.
The value of real estate taxes in Turkey is the same for Turkish citizens or foreigners, and in general there are three main types of real estate taxes:
Title Deed Transfer Tax
It is common in Turkey that the buyer should pay the full transfer tax. If an agreement is not reached, the buyer is expected to pay the full transport tax.
Although the Title Deed Transfer Tax Act states that both the buyer and seller pay 2% of the price of the purchased property in Turkey.
Title deed transfer tax is paid once during the title deed transaction, and is paid to the General Directorate of Land Registry Office
Usually real estate fees and taxes are calculated on the transfer of the title deed of 4% of the price announced in the Department of the Land Registry Office of the property.
Payment is made by bank transfer, by sending text messages over the phone to the seller and buyer during the title deed transfer process, informing them of the value of the tax, in addition to the account to which the tax will be sent, so that the transmission process takes place before the two parties sign the ownership transfer deed.
Value Added Tax in Turkey
Turkey’s Value Added Tax (VAT) came into force under Law 3065 in 1984 and it is a tax imposed on most of the goods or services that are sold at each stage of production, from the stage of production to the supply and sale until it reaches the final consumer or buyer.
VAT or KDV in Turkish is paid in order to cover the costs of establishing and running public services for the state in all sectors,
Its value ranges from 1 to 18% of the total value of the property in Turkey and is paid once upon completion of the acquisition procedures, and its percentage is determined according to the geographical location of the property, its type and the price per square meter in it.
In 2017, the Turkish Parliament agreed to exempt foreigners from the value-added tax if they apply some conditions,
The exemption also includes Turks who work outside Turkey for a period of 6 months, non-resident foreigners, and organizations that do not have an office in Turkey or a for-profit activity.
Annual property tax
It is a property tax paid in exchange for the services provided by the municipality to the area, annually and periodically
Its value is approximately 3 per thousand of the property value, to be paid to the municipality of the area in which the property is located
When you want to calculate the value of the mentioned tax, it must be known that it is obligatory for every property in Turkey, but it differs from one property to another, and the annual property tax increases according to the value of the property,
Accordingly, the value of the property is determined by the municipality on an annual basis, according to the value of the popular allowance.
Another important factor in affecting the value of property tax is the municipality of the area in which the property for which this tax is to be paid is located, as it varies according to the municipality, whether it is inside or outside the city.
