Property tax in Turkey is charged in two installments to local governments: the first in March and May and the second in November. Banks, cheques, online payments, and cash are all acceptable methods of payment.
Does Turkey have property tax charges?
In Turkey, a property tax is imposed on both buildings and grounds. The concerned municipality calculates property tax at rates ranging from 0.1% to 0.3% each year.
How much is property tax in Turkey?
According to the Ministry of Finance and Treasury, Turkish homeowners currently pay an annual property tax of 0.1% of the property’s value. Property prices vary from area to area, so where to invest in Turkish real estate is a decision you need to make.
Is Turkey about to increase the rate of tax property tax paid?
The current rumour mill is saying that Turkey is imposing a new property tax for foreign buyers wishing to invest in a second home to use for vacations. According to a Turkish London-based Kobalt Law lawyer, Turkey has no plans for a new property tax. The Turkish, London based lawyer is also a member of the Istanbul Bar as well. Turkish homeowners now pay an annual property tax of 0.1% of the property’s worth.
According to Reuters, the Turkish government could be considering new tax laws for high-income earners and luxury home sales. Stamp duty or transfer taxes are examples of these taxes. According to the report, the Ministry of Finance’s presentation proposals has been postponed until October. The proposals’ specifics, however, are unclear, say sources.
Transfer taxes were reduced as a result of a recent restructuring. This has been clarified that the government decreased the tax charged at a property sale from 4% to 3%. This is a one-time move that happened in 2018. The reduction was made to increase the number of property sales. It was reduced pro-rata in 2018 and extended for the rest of the year until 2019.
The tax is expected to be divided between the buyer and the seller by statute. However, the parties may settle to various terms, with the buyer usually footing the entire tax bill. Furthermore, if a homeowner sells a home, the seller must report a capital gain on their tax return. According to the Ministry of Finance, this benefit is calculated by adjusting the acquisition rate for inflation. Homes occupied for more than five years are excluded from the levy.
How to pay property taxes in Turkey
The year after the property is purchased, a buyer of Turkish real estate is responsible for paying property taxes in Turkey (by receiving Tapu). These can be charged in two installments at the council or online. Before the seller may pass ownership, he or she must pay the previous year’s costs.
The council is deciding the annual tax. The type of property, its registered value, and its location all play a role. These details are included in the tax declaration (emlak beyani) required of any new property buyer in Turkey within the same calendar year of purchase.
If the land, its ownership, or its intended use do not alter in the coming years, the tax declaration does not need to be repeated. For example, a residential apartment homeowner with a registered value of 500,000 TL in Istanbul (central city) will pay 0.2% of its value or 1,000 TL per year.
Can anyone help me pay my property taxes in Turkey?
There are excellent companies who will assist homeowners with their tax declaration for their home in Turkey as part of superb after-sales services. On their behalf, these companies will keep track of their annual property tax payments. In general, if you buy from a good estate agent/agent they will help you pay your property tax payments and other household bills.