In this article, you will get detailed information about property taxes in Turkey, tax exemption in Turkey, Turkey real estate tax legislation, selling property in Turkey tax, tax on buying property in Turkey, and the annual property tax in Turkey.
Whether you want to buy or sell a property, you will find yourself required to pay a property tax in Turkey, which is imposed on both the seller and the buyer, as there is a tax on buying property in Turkey, as well as a selling one.
But Turkey is different from other countries in this point, as Turkey real estate tax legislation does not distinguish between locals and foreigners.
Lale Real Estate Group concluded in details all what you should know about property taxes in Turkey in this article.
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What are Property Taxes in Turkey?
In order to prepare all the costs of buying a property in Turkey, there are types of property tax in Turkey for foreigners that you should know.
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One-Time Buying Property Taxes in Turkey
The first type of property tax in Turkey for foreigners is the tax that is paid only once when buying or selling a property, as it is followed:
Property Tax in Turkey on Value Added
This property tax in Turkey is collected only once on homes that are sold for the first time and is paid by the construction company.
This type of property tax in Turkey for foreigners ranges between 1% and 18%, depending on the property appraisal for the type of building and the area of
But generally, properties that located in major areas require a higher property tax in Turkey than those in small areas.
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Tax on Buying Property in Turkey
Buyers are required to register the property with their names in the Tapu Directorate, by preparing a file along with tax on buying property in Turkey estimated at 2% of the property value.
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Selling Property in Turkey Tax
As the buyer paid tax on buying property in Turkey, the seller must also pay selling property in Turkey tax while transferring the ownership of his property to the buyer by applying to the Tapu Directorate, which is estimated at 2% of the property value.
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Annual Property Tax in Turkey
If you want to buy a property that was sold before, you are still required to pay an annual property tax in Turkey, as it is followed:
Earthquake Insurance
There are two types of this type of property tax in Turkey for foreigners, one of which is mandatory and the other is not, and this is determined according to the type of property and its features, in addition to the type of insurance.
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Property Tax in Turkey on Profits
This type is also known as income tax, it is collected on the selling property in Turkey tax before 5 years of its purchase.
It is calculated from the difference between the value specified in the title deed at the time of purchase and during the sale.
If the selling price does not exceed 6000 TL, then its value is 20%, and if the property price exceeds 140,000 TL, it will reach about 45% of the property value.
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Monthly Property Taxes in Turkey
The property owner pays monthly property taxes in Turkey, as a fee for such services including planting gardens, cleaning, maintenance, etc.
The monthly property taxes in Turkey are estimated at about $21 per square meter on average, and it varies according to the type of the property. The higher the luxury, the higher the tax value.
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Turkey Real Estate Tax Legislation 2022
Turkey real estate tax legislation stipulates that the tax must be paid in two installments, the first half should be paid in the months of March, April, and May, and the second half in November of the same year.
There is a penalty imposed on property owners who fail to pay the tax on time because they will be obliged to pay a fine for this delay.
In addition, the amount of the penalty doubles for each year the property taxes in Turkey are not paid, at a rate of 1.4%.
If the delay in payment is continued for a long time, it will lead to a real case in the court from Turkey real estate tax legislation.
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Tax Exemption in Turkey 2022
There is a small category of people who have tax exemption in Turkey. They are the relatives of martyrs, former lawyers, the unemployed, and the retired, in addition to the possibility that it will apply to foreigners under some conditions.
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What is The Exemption from Property Tax in Turkey for Foreigners?
The law of tax exemption in Turkey is limited to property taxes in Turkey, which are paid only once, and do not include any other taxes.
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Property Tax Exemption in Turkey
Only new properties are included in the possibility of tax exemption in Turkey, such as apartments, villas, offices, while lands are not included in this law.
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Who Gets the Benefits of Exemption from Property Tax in Turkey?
Turks and naturalized citizens can benefit from tax exemption in Turkey, in addition to a group of society such as orphans, widows, disabled, relatives of the martyrs, under some conditions.
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Conditions of Tax Exemption in Turkey
The Turkish law stipulates some conditions for Turks and foreigners to benefit from tax exemption in Turkey, as it is followed:
- Residing outside Turkey, and not to have any residence permit in Turkey for more than six months.
- Owning only one property.
- Committing to not selling the property for one year after the exemption is issued.
- Proving that the amount of the property was paid from outside Turkey.
- Not to have a registered address in Turkey.
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Documents Required for Tax Exemption in Turkey
A list of documents must be prepared when applying to the authority of tax exemption in Turkey:
- A copy of the passport
- Contract of sale
- Tax number
- Power of attorney for whom the lawyer represents
After the tax exemption in Turkey is issued, you must go to the Tapu Department in the same municipality of the property to apply for tax exemption in Turkey, by submitting a file of the following documents:
- A document from the bank proving that the property amount was transferred from abroad in dollars or euros.
- Proof of the foreigner’s residence outside Turkey.
- Proof of the foreigner’s residence permit in a country other than Turkey.
- A document proves the movement of entry and exit from Turkey.
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How to Obtain a Certificate of Property Tax Exemption in Turkey?
The certificate of property tax exemption is obtained after fulfilling the following required conditions:
- Residence outside the borders of Turkey.
- Owning only one property.
- Paying the value of the property from outside Turkey.
- Not residing in Turkey for more than 6 continuous months in the previous year.
- Keeping the property for one year after the exemption.
Thus, it will be possible to finally obtain a tax exemption from the value added to foreigners.
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Frequently Asked Questions about Property Tax in Turkey
How much is the property tax in Turkey?
The property tax in Turkey costs 0,2% from the property value.
How to pay the annual property tax in Turkey?
You can pay the annual property tax in Turkey, whether by visiting the municipality and making the payment, or by paying it online through the official website of the municipality.
What are property taxes in Turkey?
There are types of property taxes in Turkey, including the buying and selling property in Turkey tax, which is paid only once, in addition to the annual property tax in Turkey.
When to pay property tax in Turkey?
The property tax in Turkey is paid in two installments, the first half should be paid in the months of March, April, and May, and the second half in November of the same year.
How to pay property tax in Turkey?
You can pay the property tax in Turkey, whether by visiting the municipality and making the payment, or by paying it online through the official website of the municipality.
Do foreigners pay property taxes in Turkey?
Yes, foreigners pay property taxes in Turkey. The property taxes in Turkey differ according to the type of property, its location, and other features.
How can I collect the documents required for exemption from property tax in Turkey?
Documents required for exemption from property tax in Turkey can be delivered to the Tapu Department. The required documents are:
1. A document from the bank proving that the property amount was transferred from abroad in dollars or euros.
2. Proof of the foreigner's residence outside Turkey.
3. Proof of the foreigner’s residence permit in a country other than Turkey.
4. A document proves the movement of entry and exit from Turkey.What is the value added tax on property in Turkey?
The value added tax on property in Turkey is an amount of money range between 1% and 18%, according to the type of the property and its features.
When will the investor be exempted from value-added tax on property in Turkey?
Investors can benefit from property tax exemption in Turkey when they meet these conditions:
1. Residing outside Turkey, and not to have any residence permit in Turkey for more than six months.
2. Owning only one property.
3. Committing to not selling the property for one year after the exemption is issued.
4. Proving that the amount of the property was paid from outside Turkey.
5. Not to have a registered address in Turkey.How do foreigners benefit from the property tax exemption certificate in Turkey?
Foreigners can benefit from the property tax exemption in Turkey by saving this amount of money.
Is it possible to buy more than one property under the property tax exemption in Turkey?
No, you must buy only one property to get benefit from tax exemption in Turkey.
Can value added tax be refunded after buying a property in Turkey?
The refund of value added tax after buying a property in Turkey is a hard matter, so investors should prepare all the required documents and commit to the conditions.
Is it possible to sell a property in Turkey less than a year after buying it?
If the buyer wants to benefit from the tax exemption in Turkey, he must buy the property and keep it for a year, otherwise he will pay the property tax in Turkey.
How much is the buying and selling property in Turkey tax?
The buying and selling property in Turkey tax are 4%, 2% on the buyer, and 2% on the seller.
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