Types of real estate taxes in Türkiye

Many investors, homebuyers, and those interested in owning property in Turkey are interested in learning about the types of real estate taxes in Turkey, in order to complete all official legal procedures when purchasing any property, at a time when Turkey is witnessing an increase in demand from investors to purchase real estate of various types, as real estate taxes are considered one of the The basic fees in the Turkish economy, as they contribute significantly to financing various government and service projects.

 The types of real estate taxes in Turkey vary, depending on their purpose and the party that imposes them. Below we will take a look at the most important types of real estate taxes in Turkey :

When purchasing the property :

When purchasing a property in Turkey, the buyer must pay several real estate taxes, and the percentage of these taxes depends on the value of the property and the details of the transaction. Below we will review the most important real estate taxes that the buyer must pay in Turkey :

• Purchase tax or title deed transfer (Taboo) : This tax is imposed on the buyer when purchasing the property or transferring ownership, and the tax rate is determined based on the value of the property. The percentage of this tax in Turkey ranges between 3% and 4% of the total value of the property in the sales contract, and this percentage may vary according to the area of the property and the real estate investment areas in the country. This tax is also imposed when registering the property’s title deeds in the Real Estate Registry Department. In addition, this tax is paid equally between the old owner of the property, i.e. the seller, and the new owner of the property, i.e. the buyer, and the tax is paid at the moment the ownership is transferred.
• Value added tax KDV : This tax is imposed on the buyer if the property is new, meaning that it has not been used before, or it is a tax on commercial real estate, and it is considered one of the types of real estate taxes in Turkey that are paid once. The percentage of this tax is determined based on the value of the property and reaches 20% in some cases. Its value ranges from 1-20% of the total value of the property, and is paid after the completion of ownership procedures. Its percentage is determined based on a set of criteria, which are: geographical location, type of property. Purchase price per meter. When talking about the method of obtaining a tax exemption upon receiving the title deed, it was done according to several conditions, which are: the investor must not be a resident of Turkey, must not own a business or own a company, and must not hold a valid residence permit, in addition to transferring funds. From abroad any of the other currencies and other conditions.
• Notary contract confirmation tax : Notary contract confirmation tax is one of the most important real estate taxes in Turkey, as it is paid after signing the purchase or rental contract between the owner and the buyer. Through this tax, the contract is guaranteed to be documented, and this tax also serves as a certification fee. For the contract at the notary, and this tax is considered one of the most important taxes that must be paid in order to preserve rights.
• Real Estate Appraisal Tax : It is a tax paid directly to the Real Estate Appraisal Department. No one is allowed to participate in the details of the official process through which the property is evaluated or to produce an ownership report through real estate agents. Preparing this report usually takes six days in the city. Istanbul, as for the rest of the Turkish cities, it can take only three days.
• Earthquake insurance tax - DASK : The earthquake tax is included in the types of real estate taxes in Turkey, and the value of this tax is determined based on the property’s proximity or distance from those areas that are considered earthquake areas. This is done in accordance with the regulatory regulations specialized in earthquake insurance for residential properties, and Turkey It is divided into five regions according to this regulation, and there are about 15 prices that differ depending on the region and the determinants of its proximity or distance from danger, while there are other criteria for determining this tax, which is the type of construction in real estate.

While owning the property :

While owning real estate in Türkiye, there are taxes that you must pay, which are :

• Annual property tax : According to the tax law in Turkey, the property tax is paid in two installments during the year, each installment equal to the second. The first installment is in March, April, and May, while the second installment is during November of the same year.
• Monthly tax for services or revenues : The services tax and monthly revenues for real estate in Turkey represent the money that is paid on a monthly basis to the complex in which the property is located, in exchange for social, health, or recreational services, in addition to bills and others.

When selling the property :

When selling a property in Turkey, there are taxes that must be paid to the specialized authorities, and these taxes are represented in the real estate profits tax, which is the tax that occurs after purchasing the property and then having a desire to sell it before 5 years have passed since the owner receives the property’s title deed, and this Based on Article No. 80 of the Income Tax Law in Turkey, as for real estate that is purchased during the construction period, the five years are calculated starting from the date on which the real estate taboo is received.

Property inheritance :

The inheritance tax on real estate is one of the most prominent types of real estate taxes in Turkey, and its rate varies between 1-10% and this is determined according to the residence of the inheritor, in addition to the geographical location of the property, while the inheritance tax is considered low in Turkey when compared to European countries located within European Union, and it varies based on the value of the property owned by the investor, and is deducted in lower percentages whenever real estate prices witness a decline in Turkey.

It should be noted that these taxes may change at any time, and vary depending on the area of the property and the type of deal.

You can ask the real estate consultants at MBANY Real Estate to obtain more information and contact us .