What do you know about real estate tax in Turkey 2022 AD

May 12, 2022
غير مصنف

From our clients and many foreigners wishing to own real estate in this country, we received many questions about this issue, and we at Hana Real Estate have chosen to answer one of them in this comprehensive and detailed report.
(Real estate taxes in Turkey) Important details that you should know before you start looking for real estate for sale. If this topic interests you, we advise you to follow the following lines and we wish you an enjoyable and useful reading.

Everything related to real estate tax in Turkey:

The issue of real estate taxes in Turkey is occupied by many foreigners who come to own real estate. Is it high and an obstacle for the foreigner, or is it appropriate and moderate?
Through the following paragraphs, we will clarify all the points related to real estate taxes in Turkey.

First: The tax on obtaining the title deed:

It is also called the fees for obtaining the Tapu, and it is one of the compulsory taxes because you pay it in exchange for the property moving to your name. It is 4% of the total property value, paid by the buyer and seller equally, and in some cases it is agreed between them that the buyer will bear it entirely on his own.

Second: The annual real estate tax:

There is a tax that must be paid once a year, amounting to 0.002 of the total value of the property. It should be noted that it is paid for the first two phases in March and the second in November.
Where is this tax paid? You are faced with two possibilities, either to go to the municipality building in the area or by transferring the amount to the bank account that belongs to the municipality.

Third: Real Estate Profit Tax:

According to Turkish law, whoever sells his property in Turkey before five years have passed since the date of its purchase will have to pay the real estate profit tax, and if he does not sell it during the mentioned period, there are no taxes that he will be obligated to pay.

Fourth: Initial Contract Installment Fees:

Many people and investors choose to buy a property in installments in Turkey or under construction and therefore they will not be able to transfer the ownership of the property to their name and in order to guarantee their rights they choose to sign a preliminary contract with the notary, which is optional, and you can abide by it and you can not, but in all cases this step makes the buyer feel safe so that he can transfer the ownership of the property to him.
The initial contract installation fee is 1% of the total property value.

Fifth: Revenues of residential complexes:

Many foreigners choose to live in residential complexes or invest in them to obtain high profits, but it must be noted that a very important thing is that living in these complexes makes you face additional costs (monthly revenues), which average about fifty dollars and vary according to the services provided.
Why are revenues paid when buying an apartment in a residential complex in Turkey and not in independent buildings? Because in these complexes a lot of services are provided that make the residents get a luxurious life full of luxury.
Among the most important service and recreational facilities that you will find in these complexes are:
– Sauna – swimming pool – Turkish bath.
– Cleaning services – periodic maintenance – guarding and security around the clock.
– Strategic location – modern specifications – multiple styles to suit everyone.
What if these monthly returns are missed?
Several measures will be taken, the first of which is to issue a warning and give him a deadline. If he does not respond, he and all his family members will be prevented from benefiting from the services that are provided. If he does not respond, the basic services will be separated from his apartment, such as water and electricity. If none of the previous steps bring any result, then a lawsuit will be filed against the owner of the apartment.

Sixth: Value Added Tax:

The value of the added tax ranges from 1 to 18% of the total property value, but among the facilities offered to foreigners is the exemption from this tax when owning real estate for the first time.
You may be wondering when do I pay 1% and when do I pay 18%? If the area of the property is 1% less than one hundred and fifty square meters, and you pay 8% when the area of the property is more than one hundred and fifty square meters, as for 18%, you must pay it when buying luxury or commercial real estate.
How are you exempt from paying the value added tax? The following are the most important cases under which the buyer is exempted from paying it:
– In the event that you transfer the value of the property to the seller or the company established from outside Turkey.
– The buyer must prove that he does not reside in Turkey.
– This is the first property he buys.
– It is worth noting that when you apply for the exemption you must be very careful because any mistake prevents you from benefiting from it.

Seventh: Fees imposed by the municipality:

Everyone who owns real estate in Turkey must pay an annual fee to the municipality in the area where the property is located, which is 0.03% for the services provided by the municipality to the area.

Eighth: Real Estate Appraisal Fees:

One of the basic conditions that must be adhered to when buying real estate in Turkey is to extract a real estate appraisal report that provides you with the real price of the property and prevents you from paying thousands of Turkish liras in the wrong place or being a victim of manipulation and fraud. The cost of extracting it is at most $200.

Ninth: Fees for issuing an earthquake insurance policy:

When buying a property in Turkey, you must extract an earthquake insurance document that guarantees your rights in the event of any natural disaster or the like, as the Turkish state assumes responsibility for bearing part of the losses.
In some cases, the state compensates the aggrieved party in the amount of 200 thousand Turkish liras.

Tenth: As a deposit of real estate reservation:

We cannot consider this amount as one of the costs incurred by you when buying real estate in Turkey because it is part of the price of the property, but we deliberately mentioned it in order to calculate it and prepare it. This amount that is paid before signing the contract is called the reservation amount. By paying it, you guarantee that the property will not be sold to someone else.
One of the information you should be aware of is that this amount cannot be recovered in the event that you change your mind and retract the purchase decision.

Among the most important costs that you will have to pay when buying real estate in Turkey are the fees for translating all papers into Turkish and the price of attesting them with the notary, and there are also fees for subscribing to water and electricity meters, and so on.
In the context of talking about real estate taxes in Turkey, we must point out a very important thing, which is that one of the main reasons that encourage foreigners to own real estate in Turkey, not in other countries of the world, is the low taxes compared to what you will have to pay in European or American countries.
Low taxes help the investor to get abundant profits and save him a lot of money.

Other reasons that encourage you to buy real estate in Turkey:

Through the previous paragraphs that we mentioned above, we have explained to you about one of the aspects related to the real estate sector in Turkey, which you should know when you are about to own real estate, and in order to answer all your questions that revolve around this field, we will talk below about all the reasons that encourages foreigners to search for real estate for sale in Turkey.
1 – The possibility of obtaining real estate residency in return for the purchase of a property designated for housing.
2 – Obtaining Turkish citizenship in return for buying a property worth two hundred and fifty thousand US dollars or more.
3 – Low real estate prices, unlike the high prices that you find in European countries and some Arab countries.
4 – The ease of real estate ownership procedures in Turkey thanks to the provision of government departments everywhere and the few steps required.
5 – Living in a safe and stable environment in which all the necessities of life and luxury are available, in addition to the low cost of living.
6 – There are many real estate and investment projects that are guaranteed by the Turkish government.
7 – A distinct geographical location spanning two continents (Asia and Europe), which made it possess many characteristics.
8 – Turkey is characterized by its developed economy, which is constantly growing and is expected to gain an advanced position in the coming years.

How do I buy a property in Turkey?

One of the common questions among the investors and those looking for real estate for sale in Turkey is (how to buy real estate) and what is meant here is not in terms of finding the right property, but in terms of paying for it. There are three ways to pay for the property and through the following paragraph we review them together:
First: Through personal finance: here you have saved its price earlier and you can pay its full price in one payment without resorting to a debt solution.
Second: That you have part of the price of the property and you have to take a loan from a bank in return for placing a mortgage sign on the property.

Third: Buying an apartment or real estate in installments by choosing one of the reliable construction companies and good offers, so that you have a chance to pay its price in parts and installments.

What about buying under construction properties?

One of the many options that foreigners resort to when buying real estate in Turkey is to choose properties that are still under construction, which is a unique opportunity for those who cannot pay the full price of the property in one payment because the method of payment is with the development of the construction stages.
Did you know that many investors choose to buy properties that are still under construction for real estate investment because their prices rise by 35 to 60 or 70 percent after the construction stages are completed, which guarantees them a high profit when selling them.
If you have decided to buy this type of real estate, there are a number of tips that you should take into consideration, which are as follows:
– To be accompanied by a real estate expert and an architect to make sure that everything that was agreed upon is adhered to.
– To put all the details that were agreed upon in a contract.
– Ensure that you are able to pay the installments on time.
– Try to make the down payment big so you can get a high discount.
– Be sure that a date is set for the handover of the property.

Is buying a property in Turkey a complicated step?

Opinions vary on this issue. There are those who say that buying real estate is very easy and does not require much effort and fatigue, and there are those who point out that it is a step that requires caution and focus.
If you look at Turkish laws, you will find that they are very flexible and intersect with the interests of investors and foreigners in a large way, and this was one of the first motives that made Turkey their first choice for investment, and you will not have to search on your own, because with the increase in the number of people coming to own property in Turkey, the number of real estate agents, consultants and specialists has increased with it. Thus you can ask for help.
There are many steps that you must follow when searching for real estate for sale in Turkey, which are as follows:
First: You must specify the goal that you intend to achieve from the property. Do you seek housing? Real Estate Investment? Obtain citizenship?
Second: Before starting the search, you must determine the budget available to you. Is it sufficient to cover all the expenses of buying the property?
Third: Use one of the real estate experts in Turkey or trusted real estate companies to provide you with the best offers that are suitable for you.
Fourth: Take tours and visit the most important real estate projects on the ground to see the advantages and details, and not be satisfied with what you see on the websites.
Fifth: After you have liked a property, you have to negotiate the price, and here lies the role of the professional real estate company, as it seeks to offer you the best properties at attractive prices.

Advice from the experts of Hana Real Estate for everyone who wants to buy real estate in Turkey, do not take any step until you have obtained enough information about this sector, and for that you can contact us to provide you with all the assistance you need, or you can follow our website and our platforms on Social media because we are keen to keep you updated.