Taxes on real estate in Turkey

There are many types of taxes on real estate in Turkey, in this article we will explain all the taxes related to real estate.

Taxes and fees for real estate in Turkey:

Tax on property transfer:

The transfer of real estate ownership in Turkey is subject to a special tax, the value of which varies according to the reason for the transfer of ownership, such as sale, gift and inheritance. What matters to the investor is the property transfer tax in the event of a sale. The property transfer tax in this last case amounts to 4% of the property value specified in the real estate appraisal document issued by a licensed appraisal company, and it is a necessary document for the transfer of real estate ownership, we have previously talked about independently.

This tax of 4% of the property value falls equally between the two parties to the sale contract. And it may happen that there is a special agreement between the two parties that one of them will bear it individually, and he is usually the buyer.

value added tax:

After a building is constructed on the land, the registration of the building in the real estate registry (Tapu) is subject to a one-time value-added tax, which is paid when the property is sold and its ownership is transferred, and it is the responsibility of the seller. The value of this tax ranges between 1% and 18% of the value added by the building to the land, according to the type of building, its location and its area. It is possible to clarify the amount of tax for a specific property from the General Tax Administration.

Real estate profit tax:

This tax is legally imposed on the seller of the property if he sells it within five years from the date of his purchase, because in this case he is assumed to be practicing real estate. But if he sells it after this period, this tax is not imposed on him.

Some sellers may require the buyer to pay this tax, so some buyers resort to looking for a property to be sold by its owner more than five years after he purchased it.

The percentage of this tax varies according to the type of real estate, its location and its area, and it ranges between 15% and 35% of the estimated profit value.

This is what can be clarified about when selling from the General Tax Administration.

Some sellers may require the buyer to pay this tax, so some buyers resort to searching for a property that its owner sells more than five years after he purchased it.

The percentage of this tax varies according to the type of real estate, its location and its area, and it ranges between 15% and 35% of the estimated profit value.

This is what can be clarified about when selling from the General Tax Administration.

Annual fees for the municipality:

Real estate in Turkey is subject to annual fees collected by the municipality, in exchange for municipal services.

The value of these fees, for commercial real estate, is 4 per thousand of the property value in major cities, and 2 per thousand in other cities.

As for residential real estate, it is 2 per thousand in major cities, and 1 per thousand in other cities.

Insurance against earthquakes and natural disasters

This insurance is mandatory on commercial and residential buildings throughout Turkey. As for the insurance on the things and other properties contained in these buildings, it is optional. The insurance premium is set at approximately two dollars per square meter of building.

Service fee in residential complexes (aidet).

Residential complexes are legally obligated to establish a department to provide services to the residents, such as private security services, swimming pools, maintenance work, management of sports facilities, playgrounds and parks, and monitoring of the infrastructure of the residential complex in general. Therefore, the management of the assembly has the right to collect monthly allowances, known as “returns” from the owners of the exchanges, which are estimated between 2 and 4 Turkish liras per square meter, depending on the location of the property.

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