The Turkish government is expanding its economy through one of its burgeoning markets, Turkish real estate. It provides investors with all of the tools they need to enter the real estate market. It also offers real estate for sale in Istanbul to promote tourist studies, international students, and real estate investment. Even though Istanbul is no longer Turkey’s capital, it remains the country’s economic hub.
The taxes levied on real estate in Turkey apply to both Turks and foreigners. There are no taxes imposed exclusively on immigrants. What is rumored is a scam perpetrated by those who take advantage of foreigners ignorant of Turkish property laws and the tax system. Property for sale in Turkey is flourishing as we are seeing more investors getting in to the Turkish real estate market.
Types of property tax
The Turkish government’s real estate taxes do not interfere with government-provided services. They represent competitive advantage and robust facilities compared to property taxes in other countries, especially Europe. In Turkey, there are four forms of property taxes:
Taxes are paid once a month (monthly maintenance AIDAT)
Taxes on one-time payments made on real estate
This tax ranges from 1% to 18%, depending on the type of land, location, design and construction level, and other factors. If you buy a home in Istanbul, the VAT is not the same as it is in other cities, and so on. This range is based on the net area of the property rather than the total area.
The Turkish government has a surprise for you; you can get rid of it, but only under certain conditions. The abolition of VAT on real estate investment in Turkey by foreign investors or Turkish expatriates living and employed for more than six months outside Turkey was passed into law in February 2017. This tax exemption is applicable if the property’s value is paid in foreign currencies. Also, the property should not be sold for at least a year after purchase.
Tapu property tax
Fees due at the time of title deed registration (Tapu)
This fee, which amounts to about 4%, is charged to the Land Registry Office when the title deed is recorded. Apartments, homes, and villas are among the small properties listed.
For the investor, it will cost $60 to arrange stamp duty.
$50 for a certified translation of your passport into Turkish.
The property transfer fee is $200 and is due upon receipt of the transfer request.
If you don’t speak Turkish, you’ll need to pay $100 to hire a translator to help you finish the process.
In exchange for services provided by the Turkish municipalities, the percentage of this tax is 0.03% of the property price paid once a year.
Insurance of property in Turkey against natural disasters.
It’s equivalent to $100 approx. It is to protect your home from natural catastrophes, such as earthquakes. This insurance is called DASK.
Monthly taxes (monthly maintenance AIDAT)
Per square meter, the tax ranges from two to five Turkish liras. It is paid to organisations supervising residential complexes in return for the organisation’s services to the residential complex, such as swimming pools, parks, playgrounds, environmental cleanliness, maintenance, and other critical services.
When you are looking for a good estate agent to assist you, do your research to determine all the tax and fee specifics when purchasing real estate in Turkey. We also recommend that you use a lawyer in any property transactions, just as you would in your current country. Whether you are looking for a holiday home, permanent residence or an investment you will find a suitable Turkish property and make a sound investment.