Real estate taxes in Turkey
Turkish tax legislation has become more clear, objective, consistent and in accordance with international standards. There are many taxes to be paid by investors, including real estate taxes,which are regularly charged to the tax departments concerned for certain periods during the year by the commissioners of the property owners.
Property Taxes :
These are in-kind amounts that are calculated by the buyer or seller, and paid to the Real Estate Tax Department of Turkey when buying a property or transferring its property.
How the property tax is calculated:
The tax is calculated at 0.001% of the popular value of residential properties, and 0.002% for non-residential properties. Real estate tax on shops, offices and other properties is 0.004% in major cities and 0.002% outside major cities. The ratio for each type of property may double, especially if it belongs to the municipalities of the major cities and the popular value of the property in 2019 is calculated from its popular value in 2018 and half of the increase in the value of the property in 2019 is added.
Types of property taxes in Turkey:
One-time property taxes:
It is paid to the state and is calculated from the market value of the property during receipt, but is calculated from the net area (not the total area)
The VAT is divided into three sections:
-Commercial Real Estate VAT is 18%
-Residential real estate, if the net area of the housing unit is greater than 150 m2 VAT is 18%
-Residential real estate, if the net area of the housing unit is less than 150 m 2 the VAT rate charged varies from 1% and 8% and might reach to 18% so that this tax varies depending on the area of the property and the level of construction. İt also varies according to the price per square meter of land on which the property is based.
4% registration tax:
A tax paid to the Real Estate Documentation Office, calculated from the actual value purchased for the property while registering the property document for the new buyer’s name.
- Property ownership tax in Turkey equal to 3.9% of the Property price.
- Translation and certification of the buyer’s Turkish passport is USD 100.
- The fees for obtaining a title deed in the name of the new owner are US$90.
- Call-up fees for a serf (English-Turkish) registered with the Translators’ Association of Turkey (USD 100).
- The property transfer application fee is paid to the Bureau of Maps in the Land and Land Registry Department of $200
Register the water meter in the name of the new Owner :
-Register a new counter 200 USD.
-Transferring the owner’s name from the old owner to the new owner $ 60.
-Registering the electricity meter in the name of the new owner :
-Registration of a new counter 150 USD.
-Transferring the owner’s name from the old owner to the new owner $ 40.
Annual Property Tax:
This tax is paid to the municipality, and the value of property taxes ranges from 0.1% – 0.6% of the declared value.
Residential real estate
It imposes a value of 0.1% on the value of the property.
Other real estate
They vary from one property to another and are notified to the municipality before the end of December of each year.
Earthquake Insurance Tax:
Earthquake insurance is mandatory for property owners, where a flat value is paid to an insurance company; usually don’t exceed 0.1% of the property value.
Monthly Property Tax:
Due to the many services available in residential complexes, such as swimming pools, playgrounds, gardens, security and cameras, all owners pay a fixed monthly fee to the company operating the complex, for the maintenance and maintenance of all services, and cleaning work. These fees vary from project to project, ranging from $ 1.0 to $1.5 Per square, these fees are considered as the maximum.
Where are property taxes paid ?
The real estate tax can be paid in the municipalities of the major cities to which the property is regulated. If the property is in another town of the city, the tax can be sent through all post offices or paid to the bank accounts assigned to the tax number ptt for the taxpayer, and the amount of real estate tax can also be paid online, whether the real estate tax is on Apartments or other real estate.
Real Estate Tax Dates:
In a turkish newspaper report, anyone who has purchased a property as of January 1, 2019 must pay the real estate tax for the year before December 31, 2019, and its value is determined based on the registered value of the property and according to its type.
Benefits of delaying payment of property taxes:
In 2018, the interest rate on the payment of real estate tax was 1.40% of the tax value imposed for each delay month, but was raised this year at 2% of the tax due for each delay month.
Those who are exempted delay payment of property taxes :
Those who own a single dwelling with an area of no more than 200 square meters and do not have any other home are exempted. The law granted exemption to special social groups: disabled persons, relatives of combatants and martyrs, pensioners, housewives, widows and orphans. However, those exempted from the estate tax must go to the Tabo Department to apply for a property tax exemption. They can also recover what they paid earlier as a property tax when they prove that they are entitled to an exemption so that these funds can be recovered within five years of the date of the application.