Feb 5, 2023

The Taxes and Fees Imposed When Buying Turkey Real Estate in Turkey

Of course, the person who is about to buy property in Turkey, must have full knowledge of the procedures taken, which must be taken into account and known before the purchase, and one of the most important of these things that the buyer must know is the tax system that he will have as soon as he buys a property, As is well known, the tax system is a global system that exists in most countries of the world, and the tax system is imposed on owners by paying financial fees incurred on the purchased property.

Types of taxes in Turkey

There are various types of taxes in Turkey, as it is an economic country and an important destination for many tourists and money owners.

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Annual property tax:

Real Estate Gains Tax

This tax is imposed when reselling any property in Turkey. It is also known as income tax. And it is paid only in the event of the sale, during the first 5 years from the date of purchasing the property.

The profit is calculated on the basis of the difference between the value specified in the title deed, with which it was purchased, and its sale price.

Above all, the percentage of this tax depends on the selling price. If it is not more than 6000 Turkish liras, the value of the tax will be 20%, but if the profits reach more than 140 thousand Turkish liras, the value of this tax can reach about 45% This is estimated by the Government Land Registry Department.

Earthquake insurance tax

It is a tax that is paid annually, as the owner of the property provides insurance against earthquakes. There are two types of insurance, mandatory and non-compulsory, according to the type of property available in the residential or commercial building.

One-time property taxes :

Value added tax on real estate

This type of tax depends on the type of property from which to invest, the geographical location between small cities and huge Turkish cities or the countryside, and other details related to the area, the average price per square meter of the property and the level of construction. The state has to invest in it, so the value-added tax rate is only 1%, while in huge and upscale cities such as Istanbul, the tax rate is about 18%.

Property transfer tax

Sometimes the property owner transfers the ownership of his property to other people, due to sale or other reasons; Thus, he must pay a tax upon transfer of ownership, and issue a title deed in the name of the new buyer. The rate of this tax is about 4% of the declared value, which is determined in advance. These fees are charged to both the seller and the buyer, ie the payment is made equally.

Real estate registration tax

When the investor buys any property, he must register it with the Real Estate Registry Department, or as it is known as the Land Registry Directorate in Turkey, and pay a specified amount for one time. The rate of this tax is 3% of the property value.

Utility bills in Turkey

In the event of buying or renting a property in Turkey, you must do the so-called "service counter", which includes various basic services and has papers and procedures required to activate these services.

Documents required to open the service counter

A copy of the Turkish identity, residence or camlic (for electricity only, the meter can be opened with a valid passport in all municipalities. As for gas, it differs from one municipality to another. For example, the gas meter can be opened in Avcilar through the passport, and this cannot be done in Beylikduzu municipality).
An old bill of the same meter or a picture of the meter (with the numbers written on it).
A copy of the Tapu if the house is yours or the lease contract if you are a tenant of the house.
A copy of the DASK document, which is an earthquake insurance policy.

After securing all the necessary papers to activate the service meter, the buyer or the owner of the property will have all the needs he needs such as electricity, water, gas and internet service. that you may need, and these steps are very important and reassuring for the property owner, as he chose the quantity he needs and there will be no surplus or any additional value on the bills.

In the end, we find that the types of taxes in Turkey differ according to the real estate and the type of investment, and the place to buy or invest in. It is certain that the value of taxes in small cities and countryside differs greatly from the value of taxes that are in large cities such as Istanbul or Ankara, for each place has a percentage that are commensurate with him and the value that this property is worth. Everyone who wants to buy any property must study the tax law in Turkey and choose what suits him.

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