Real estate taxes in Turkey in 2022
The Republic of Turkey is one of the few countries where property taxes are low. Moreover, the tax rate is differentiated, you will need to pay more or less, depending on the type of property and where it is located. Another feature: Turkish citizens and foreigners who own any real estate in Turkey pay the same for real estate, the country’s tax authorities do not make any distinction between local and foreign homeowners. There are two types of property tax in Turkey: one-time and regular. A lump-sum tax is Paid only once when buying a property. The amount of tax is 4% of the cadastral value of the object.
It is worth noting that the amount written on the TAPU (document confirming the right to property) is usually less than the actual amount for which the property is bought (market price). And therefore the tax will be less. In general, the payment is not burdensome. Regular taxes Also in Turkey, an annual tax (emlak vergisi) is paid for owning real estate. The amount is also calculated from the cadastral value of a residential, commercial facility, or land plot—apartments of all types and villas. The tax rate is 0.1-0.2%. At the same time, a smaller amount is paid for an object in a small settlement, rural area, etc. An interest rate of 0.2% is paid in major cities of the country. Commercial real estate (warehouses, offices, shops, catering establishments, etc.) The rate is 0.2-0.4%. The principle is the same. In small cities, the rate is 0.2%, in large cities – 0.4%.
Land. Agricultural land in rural areas: 0.1% tax. The same plot in a large settlement 0.2%. Land plot with a building permit of 0.3% in rural areas, 0.6% in a large city. Elite real estate. The tax rate will be increased if the purchased property belongs to the so-called “elite”, that is, its value is more than 5.25 million Turkish liras. Once again, we note that the tax rate is set on the basis of the amount prescribed in TAPU, and it is always less than the market rate.
If a residential property costs from 5.25 to 7.87 million liras, then the tax per year will be 0.3%. If the value of residential property is between 7.87 and 10.5 million lira, then the tax rate will be 0.6%. If the value of residential property starts from 10.5 million lira, then it will be necessary to pay 22,500 lira annually plus 1% of the amount that exceeds the tax threshold of 5.25 million lira. DASK Another payment that all property owners will need to make is the DASK disaster insurance payment.
Learn more about DASK insurance and payments under it. In Turkey, there are privileged categories of citizens who do not pay real estate tax or pay it at a reduced rate. These are separate categories of pensioners, the unemployed, and families with many children. To receive tax preferences from the state, a foreigner needs to obtain Turkish citizenship. Having a Turkish passport, he will be able to count on all the same benefits as the residents of the country. Taxes on the sale of real estate If the owner of the property decides to sell his apartments or land, then he will need to pay a tax. Tax rates for residents and non-residents will also not differ. At the same time, if the property has been owned for more than five years, then you do not need to pay tax. If less than five years, then the tax rate will depend on the amount that the owner receives as additional income.
For example, if an apartment was bought for $100,000 and sold for $120,000, then only $20,000 would be taxed. The greater the difference in the amount of purchase and sale, the higher the tax rate. At the same time, the cost of repairs, if any, is deducted from the amount. Therefore, be sure to keep all receipts for all repairs. If the property is sold by a legal entity, then the tax rate is fixed, it is 20% and does not depend on the income received from the sale and on the period of ownership of the property. Payment of taxes Tax can be paid in full for the year or in two equal amounts in May and November. In case of delay in payment, a penalty of 1.4% is charged on the amount of payment for each month of delay. There are several ways to pay tax. Personally. You need to come to the city municipality with TAPU, they will give you the details for payment and calculate the amount. remotely. You need to go to the website of the electronic municipal information system, register there, enter your tax number and pay the tax remotely.
Thank you for your attention!
Ilkin Hasanov, Turkish Real Estate investment expert. Web: https://kiestate.com / E-mail: firstname.lastname@example.org / Mob: +905394411457 / (Whatsapp, Telegram available)