Real estate taxes in Turkey
Buying foreign real estate, it is necessary to know accurately, what taxes you should pay in this country.
Tax upon real estate purchase in Turkey.
When obtaining to Tapp the buyer of real estate in Turkey pays the tax constituting 4% of cadastral cost, specified in the certificate on TAPU property (on the average 1000-2000 euros).
Tax on the got profit on real estate sale in Turkey.
In case of real estate sale, the income tax is paid only if the physical person was the owner of real estate less than 5 years. The profit is determined as a difference between the project cost specified in Tapp on which you purchased him, and the price at which you sell. If the profit no more than 6 000 TL, the size of a tax constitutes 20% if profit more than 140 000 TL - increase to 45%. It is important to know that if you decide to save on a tax and declare the small amount of the income, the authorities have the right to revaluate your real estate on market value and to approve it.
If the owner of real estate is the legal entity, the tax on the got profit on sale of real estate constitutes 20% in case of any size of the got profit.
Tax on the income from real estate delivery in lease in Turkey.
In this case the taxation for physical persons as depends on the amount of got profit. If the annual earnings of the owner from residential real estate delivery in lease don't exceed 2 400 TL, the tax on the income from real estate delivery in lease isn't levied. In case of the bigger income the size of a tax changes from 20 to 45 percent depending on the income.
For the commercial real estate which is in property of the physical person, the nontaxable income constitutes 14 000 TL.
For legal entities the tax size always constitutes 20%.
Annual real estate tax in Turkey.
The annual real estate tax in Turkey is calculated, proceeding from the cadastral cost declared upon purchase and specified in Tapp:
from residential real estate – 0,1%;
from commercial real estate – 0,4%;
from lands – 0,2%;
from the land areas having the permission for construction of commercial objects – 0,6%.
Thus, today the tax amount averages: for apartments of 50-60 euros a year, for country houses – 100 euros a year.
In the first 4 years buyers – citizens of the Republic of Turkey are exempted from payment of the annual real estate tax in Turkey. But on foreigners this privilege doesn't extend.
