Real Estate Taxes in Turkey
Buying a property in any country in the world requires the buyer to pay financial taxes for the services provided in this property by the government, and among these countries is Turkey, which is characterized by that real estate taxes are lower than other countries and that real estate taxes must be paid monthly or annually according to The type of tax and the process you perform, and it entitles you to pay a real estate tax. Here are many types of taxes that the property owner must pay.
Types of real estate taxes:
Real estate taxes have many types that are paid in more than one way and more than one time; all of them consist of matters related to real estate, real estate papers and property ownership, and these taxes include:
Possession title (Tapu) and Transfer of Ownership Tax:
The process of transferring ownership or extracting possession title papers takes place after the process of selling or inheriting the property, and the most common process is the sale and purchase of a property. When you complete the real estate sale papers, you must transfer the ownership of the property to the buyer, and this will impose a tax of 4% of the value of the entire property. According to the law, it’s paid equally between the two parties, or the two parties have previously agreed to pay it. It is also common for it to be paid in full by the buyer. You can pay this tax through the banks after the directorates send you your possession title number and you deposit this amount in the banks and thus you have paid the tax transfer of ownership of the property, and you can extract possession title papers.
Real estate profit tax:
This type of tax is imposed on the property owner when he sells the property less than five years after buying it, so whoever wants to avoid this tax should not sell the property until five years after buying it, or there is another way by registering the price of the property including the mentioned tax In order to avoid this tax because it reaches 37% of the value of the property.
Notary tax:
Sometimes the sale takes place at the notary public before the transfer of ownership in the possession title directorate. Therefore, after the transfer of ownership is carried out by a notary, and then after a period of time transferred by the possession title directorates, the ownership is transferred to the buyer officially. This tax is estimated at 1% and it varies from one notary to another.
Property ownership Tax:
It is one of the most important taxes that must be paid, and this tax is paid annually, after the process of buying and owning the property is registered in the municipality, after that, the municipality forms a committee in order to evaluate the property tax and set a specific value for the property tax, which is a small value that does not exceed 100 $ If the property is large.
Additional tax:
This tax is added when transferring ownership as well, and by the General Tax Administration, which determined this tax on real estate and commercial buildings that have been renewed, and the value of this tax ranged from 1% to 8%, so not all real estate falls under this tax, only renewed properties. The owner of the property or who wants to buy the property must ask the General Tax Directorate whether there is an added tax on his property or not. This tax is paid through specialized banks in Turkey, but you need to know the verification number that the Ownership Transfer Directorate sends you.
Other fees to be paid by the property owner:
Apart from the taxes imposed by the Turkish government on the property owner, there are also other fees that must be paid for services provided by the Turkish government or services provided by the municipality, and these fees include:
Water, electricity and gas subscriptions:
After buying a property in Turkey, the owner of the property subscribes or registers subscriptions to the electricity, water and gas institutions, and after registering these subscriptions, he must pay the insurance, which is a sum of money paid in order to ensure the payment of subscriptions and that there is no delay, and these subscriptions are in exchange for water and electricity services; these services are supposed to be good and appropriate. The value of the insurance varies between one institution and the other, and it is estimated on average at 1,500 Turkish liras. The amount of the insurance is refunded when the subscription is canceled in these institutions.
Real estate appraisal fee:
Before the real estate purchase process takes place, the buyer must call the real estate appraisal committee in order to evaluate the real estate and set a specific price for it, and this committee will collect all the characteristics of the real estate and all the services provided in it and all its advantages and disadvantages and present them to the buyer. After the work of the real estate appraisal committee is completed, the buyer must pay certain fees for this committee. This committee is called for real estate appraisal by foreigners most of the time so as not to be deceived. The government has set real estate appraisal fees for buildings with an area of ??less than 1250 square meters, as for the buildings with areas larger than this, the amount of 5600 Turkish liras is paid and this amount or fees is paid through Turkish banks also after receiving the verification code from the possession title transfer Directorate.
Earthquake insurance fees:
The earthquake insurance document must be extracted and attached with the necessary papers in order to carry out the purchase and transfer of ownership, so it is a prerequisite before the purchase of the property. The value of the earthquake risk insurance is 50 dollars for medium-sized buildings and this value varies from one property to another depending on the area and quality, it is paid within companies Insurance in Turkey.
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