If you want to buy a property in Turkey, there are many details that you must know, in order to ensure that you are on the right footing.
The editorial team at Level Real Estate Company chose, through this article, to inform you of an important aspect when owning property in that country, which is (taxes imposed on real estate), as well as other taxes that are not related to real estate, which will be highlighted.
Table of Contents
- First: real estate taxes in Turkey
- Title deed issuance fees
- Fees for obtaining the real estate appraisal document
- Initial property registration fee
- Earthquake insurance policy fees
- Water, electricity and other subscriptions
- Residential complex revenues
- Annual real estate tax
- Notary fees
- Real estate profit tax
- Real estate ownership tax
- Translation fee
- Second: Value Added Tax
- Third: income taxes
- Fourth: Banking and insurance transactions tax
First: real estate taxes in Turkey
Do you think that by paying the price of the property, you will have finished everything related to the purchase process? Absolutely not, as there are many other costs and fees that you must take into account so that you are not surprised later by things that are not within your accounts, and this is what we will talk about through the following paragraphs:
Title deed issuance fees
When buying a property, you will need to obtain a title deed or, as is common, a taboo, which is a document proving ownership of the property to its owner, and it amounts to 4% of the total price of the property and is paid equally between the buyer and the seller, and in many cases it is agreed that the buyer bears it in full.
If there is no fixed number, and the matter depends on the total price of the property, its specifications, level of luxury, and other details.
Fees for obtaining the real estate appraisal document
This document is one of the most important papers that must be extracted when buying a property in Turkey, and its cost varies according to the property, its type, location, and its total price, and it will not exceed two hundred dollars.
Initial property registration fee
As you know, many people choose to buy real estate in Turkey that is under construction or in installments. In this case, the title deed of the property will not be received until the completion of the construction work and the payment of the payments due on the buyer. Therefore, the buyer wants to guarantee his right, so he chooses to register the purchase contract at The notary who charges 1% of the total price for this procedure, which is optional.
Earthquake insurance policy fees
The earthquake insurance policy repels the competent insurance companies, and its function is to guarantee the rights of real estate owners in the event of a natural disaster that leads to damage to real estate, such as earthquakes.
The cost of this document varies according to the specifications of the property, its total value, location, etc., but in general it does not exceed fifty US dollars only.
Water, electricity and other subscriptions
Usually, whether you choose to buy a property in Turkey or in other countries of the world, there are monthly fees that will be imposed on you, which are electricity, water, gas, internet, etc., and it is appropriate in Turkey and not expensive, and on average it amounts to 1,500 Turkish liras.
Residential complex revenues
At the present time, many people choose to live and invest in residential complexes in Turkey, as this modern real estate term has caught the attention of those interested in this field, but its residents will have to pay an average monthly tax of fifty US dollars, which is in return for the many services that they receive over time from guarding and security protection to Recreational facilities to maintenance and cleaning services etc.
The returns of residential complexes vary from one compound to another, and this is primarily due to the importance of the area, its location, and the services available within it.
Annual real estate tax
As a real estate owner in Turkey, there is an annual tax that must be paid annually to the concerned authorities, and it amounts to approximately one hundred dollars, and it also varies depending on many factors related to the property, which we talked about above.
Any paper that you extract in Turkey is a contract or the like that must be attested by the notary and amounts to approximately 1% of the value of the property and may vary from one note to another.
Real estate profit tax
In the event that you decide to sell real estate in Turkey before the passage of five years from the date of purchase, there will be a tax that must be paid by both the buyer and the seller, but if you sell after the mentioned period, there will be no taxes incurred.
Real estate ownership tax
As for this tax, it is paid only once at the end of the whole sale process, and it amounts to 3.9% of the total price of the property.
If you are a foreigner who wants to buy a property in Turkey, then you certainly do not know the Turkish language, and therefore you need a sworn translator who will be with you in all the steps. All documents in your possession must be translated into Turkish, such as the passport, property contract, and others.
Second: Value Added Tax
The value of this type of tax ranges from 1% to 18%, but in general the lowest rate is approved, while the highest is imposed on luxury real estate and large trade.
Third: income taxes
The income tax is divided into two parts, the first is the income tax for companies and the second is for individuals. As for individuals, it is imposed in the event that the percentage of their profits in one year reaches between 15% and 35%.
While the corporate tax is 20%, but in both cases it is taken into account whether the individuals or companies are residents or non-residents.
Fourth: Banking and insurance transactions tax
5% of profits are charged on bank and insurance transactions and only 1% on bank deposit transactions.
This is the most important information that you are interested in knowing about real estate taxes in Turkey, which you should take into account when buying so that you are not surprised later by things that are not within your accounts, and always remember that any delay in paying them on time may expose you to penalties and fines.
Our consultants at Level Real Estate take care of all those details that you do not know anything about, which include the procedures for obtaining the required papers and so on.