In Turkey, local governments are paid property tax in two installments: the first in March and May and the second in November. Banks, checks, online payments, and cash are all valid payment options.
Is there a levy on real estate in Turkey? Both buildings and grounds in Turkey are subject to a property tax. Property taxes are calculated at rates ranging from 0.1% to 0.3% each year by the concerned municipality.
In Turkey, how high is the property tax?
According to the Ministry of Finance and Treasury, Turkish homeowners pay an annual property tax of 0.1% of the value of their residence. Property prices differ by region, so you must decide where to invest in Turkish real estate.
Is Turkey planning to raise the tax rate on real estate?
According to the latest rumours, Turkey will levy a new property tax on international buyers who plan to purchase a second home for vacation purposes. According to a Turkish lawyer from Kobalt Law in London, Turkey has no plans for a new property tax. The Istanbul Bar also recognises the Turkish lawyer, who is based in London. Turkey real estate owners now have to pay a 0.1% annual property tax on the value of their house.
The Turkish government, according to Reuters, may be considering new tax laws for high-income earners and luxury home sales. These taxes include stamp duty and transfer taxes, for instance. The presentation proposals of the Ministry of Finance have been pushed back until October, according to the article. Sources say the details of the plans are vague.
Taxes on transfer of property
Due to a recent reorganization, transfer taxes have been decreased. As previously stated, the government reduced the tax levied on property sales from 4% to 3%. This was a one-time decision made in the year 2018. To increase the number of property sales, a reduction was made. In 2018, it was pro-rated and extended until the end of the year.
According to the law, the tax should be split between the buyer and the seller. However, the parties can agree to different terms, with the buyer usually paying the entire tax bill. In addition, when a homeowner sells their house, they must record a capital gain on their tax return. The benefit is determined by changing the acquisition rate for inflation, according to the Ministry of Finance. The levy would not apply to residences that have been occupied for more than five years.
In Turkey, there are a few different ways to pay property taxes:
A buyer of Turkish real estate is responsible for paying property taxes in Turkey for the first year after purchasing the property (by receiving Tapu). These can be paid in two installments, either in person or online, at the council. The seller must pay the previous year’s costs before passing possession to the buyer.
The council is currently deciding the annual tax. The property’s form, registered value, and location all play a part. This information is included in the tax declaration (emlak beyani) that every new property buyer in Turkey must complete within the same calendar year of purchase.
The tax declaration does not have to be renewed if the property, its possession, or its intended use do not change in the coming years. For example, a homeowner in Bodrum (central city) who owns a residential apartment with a registered value of 500,000 TL would pay 0.2% of that value or 1,000 TL per year.
Is there anybody in Turkey who can assist me with paying my property taxes?
As part of their excellent after-sales programmes, some fantastic companies will help homeowners with their tax declaration for their home in Turkey. These businesses will manage their property tax payments on their behalf. In general, a successful estate agent/agent can assist you in paying your property tax and other household bills if you purchase from them.