Property tax in Türkiye 2023
Real estate tax can be quite difficult to figure out for foreign investors in Turkey. Therefore, in this article from Ebla Real Estate, we will talk about property tax in Türkiye 2023.
Property tax in Türkiye 2023:
Purchasing Tax (Title Deed Fee):
When buying a house in Turkey, the buyer gets a title deed, “Tapu” in Turkish, which comes with a fee of four percent of the price of the property. This amount is usually paid by the buyer and the seller. However, depending on the agreement between the two sides, the buyer or seller might be required to pay the whole fee.
VAT (Value Added Tax):
All commercial, industrial, and professional transactions in Turkey are subject to VAT under Turkish legislation. It is paid once upon purchase. Its percentage ranges between 1% and 8%, and sometimes reaches 18%, depending on the location, area, and some other considerations.
Luxury real estate tax:
It is one of the taxes imposed on luxury real estate in Turkey; Provided that its value is more than 5 million Turkish liras.
Real estate profit tax:
According to Article No. 80 of the Income Tax Law in Turkey, the real estate profit tax has been determined. Real estate profits tax can be exempted if one of the following conditions is met:
- If the property is sold after 5 years.
- If the profit rate is less than 18 thousand TL.
- In addition, if the property was acquired by inheritance or donation.
The annual real estate tax in Türkiye:
The annual tax (Emlak Vergisi) is the tax that property owners, whether Turkish or foreign, must pay annually in return for owning a property in a specific area in Turkey.
It is paid in two installments, the first installment is paid between the dates 1 – 31 March, while the second installment is paid between the dates 1 – 31 October.
The property tax in Turkey varies depending on the type of property, but also on the city where it is located. Thus, a tax of 0.2% rate is imposed for ordinary properties such as apartments or buildings near large cities. Regarding the properties owned in big municipalities, the property tax rate is set at 0.4% per year. Residences in large cities are subject to a property tax in Turkey of 0.2% rate per year, while those in the surrounding area are taxed at a rate of 0.1%.
Commercial properties in Turkey are taxed at 0.4% rate, while a 0.6% tax rate is applied to land. We remind you that these rates are calculated according to the price of the property.
Monthly service fees for real estate in Turkey:
Monthly fees in Turkey, known (revenues), are paid by property owners to the supervisors of the residential complex.
These monthly fees are paid for the services like the recreational and vital facilities such as gardens and swimming pools in addition to the wages of cleaners, maintenance workers, security men and guards in the residential complex.
Edited by: Ebla Group Real Estate
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