The Turkish government is developing its economy through one of its rising markets, Turkish real estate, to reach its 2023 vision. It enables investors with all the facilities that encourage them to enter this country’s real estate market. It also offers property for sale in Istanbul to boost tourist research, international students, and real estate investment in Istanbul. Although Istanbul is no longer Turkey’s capital, it remains the hub of its economy.
Turks and foreigners are included in the taxes which are added to real estate in Turkey. No taxes are levied solely on immigrants. What is rumoured is a fraud by some who exploit foreigners who are unaware of property laws in Turkey and are unaware of the tax system there.
Types of Property Taxes In Turkey
The real estate taxes imposed by the Turkish government do not conflict with government-offered facilities. Compared to other countries’ property taxes, particularly in Europe, they represent competitive advantage and robust facilities. Property taxes are split into four types in Turkey:
One-off payment taxes
Yearly Taxes
Monthly taxes (monthly maintenance AIDAT)
Real estate one-off payment taxes
VAT
Depends on the type of property, area, level of design and construction, and so on, this tax ranges from 1% to 18%. If you buy property in Istanbul, VAT will not be the same as for properties in any other city, and so on. This range is calculated on the property’s net area, not on the total area.
The Turkish government offered a surprise, you can get rid of it but under certain circumstances. In February 2017, this law was issued:
The abolition of VAT on real estate investment in Turkey by foreign investors or Turkish expatriates residing and working for more than half a year outside Turkey. If, on condition of payment of the property’s value in foreign currencies, this tax exemption applies. And that the property should not be sold for one year from the date of purchase.
Tapu Property Tax
Fees payable upon registration of title deed (Tapu in Turkish)
This tax percentage is approximately 4% and is paid to the Land Registry Office when the title deed is registered. Small properties such as apartments, houses, and villas are included. If you want to buy flats for sale in Istanbul for example, you’ll need this tax.
60 USD to arrange stamp duty for the investor
50 USD for translation of your passport into Turkish language to be certified
200 USD, the property transfer fee, payable upon receipt of the transfer request
100 USD, if you do not speak Turkish, you need a translator to accompany you in finishing the proceedings.
Annual Taxes
Municipal Taxes
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 USD approx. It is to protect your home from natural catastrophes, such as earthquakes. This insurance is called DASK.
Monthly Taxes (Monthly Maintenance AIDAT)
The tax is 2 to 5 Turkish liras per square metre. In exchange for the facilities rendered by the organisation to the residential complex, it is charged to companies supervising residential complexes, such as swimming pools, parks, playgrounds, environmental cleanliness, maintenance, and other essential services.
Summary
As always, do your homework when looking for a good estate agent to assist you, to find out all the tax and fee details when buying real estate in Turkey. We would also suggest you use a lawyer in any property dealings, just as you would in whichever country you currently live in.
