Property Tax in Turkey

property tax in turkey

Anywhere in the world we need to pay Taxes. If you want to purchase a property in Turkey you need to pay some taxes as well.

I will catagorize property taxes in Turkey for 4 phases.

VAT

Before you buy property you need to sign a contract with developer. In payment section of contract you will see VAT Tax.

After you completed all payment to developer , company needs to invoice you about your property. When they invoice to you VAT is changable %1 to %18. I will try to explain you difference.

If you purchase a residence below 150 sqm you will generally pay %1 VAT. If you buy a luxury property VAT can go up to %8 to %18. But some exemptions also available. Some developers demolish risky buildings and build new luxury residences . So goverment can give some exemptions to that developers and if you are also buying luxury concept you may see %1 VAT.

If you purchase a residence above 150 sqm you will pay %18 VAT .

If you purchase a shop or commercial unit also you will pay %18 VAT.

For Tax Exemption letter there are a few conditions. It must be your first purchase in Turkey also you havent been in Turkey before 6 months duration.

TITLE DEED TAX

Total Title Deed Tax %4 of property value.

Legally it is divided half and half. %2 Developer %2 Buyer pays.

Around 1000TL transaction tax also paid to title deed office.

MUNICIPILATIY TAX

2 per thousand per year you need to pay directly to municipilatiy of your property.

It is paid by owners equally 2 installment. 1 of them until end of May. Last installment is every year end of November.

RENT GAIN TAX

After 500TL per month rent incomes needed to pay via Bank Transfer in Turkey.

Tax of rent income is changing accordingly with your gain.

22.000 TL f you gain per year %15 ; 3.300 TL tax you need to pay.
49.000 TL if you gain per year ; 3.300 tax TL for 22.000 TL limit , plus after amount %20
120.000 TL if you get until  8.700 TL tax for 49.000 TL limit, plus after amount %27
600.000 TL if you get until 27.870 TL tax for 120.000 TL limit, plus after amount %35
600.000 TL’ if you get until 195.870 TL tax for 600.000 TL limit, plus after amount %40

RESELL TAX

If you buy any new property and keep it following 5 years you dont need to pay any gain tax.

But if you want to exit before 5 years you need to pay %20 of profit to goverment.

 

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