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Tax system in Turkey
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16/05/2024
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Tax system in Turkey
The tax for issuing a TAPU (certificate of title) is 4% of the cadastral value, which is issued in Turkish Lira. All taxes are levied based on cadastral value. The annual tax in Turkey is very low, the amount depends on the region and city. In Alanya, property tax is 0.3% per year, and in larger cities it is 0.4%. Land tax WITHOUT building permission 0.1% per year, in larger cities 0.2%. The tax on a land plot with a building permit will be 0.3% per year, in larger cities 0.6%. As for commercial real estate, taxes will be 0.4% per year. Taxes are paid 2 times a year - before the beginning of May and before the beginning of November, but there is also the option of a one-time payment for the year. Payment is made with a copy of the TAPU (certificate of ownership) at Alanya Belediyesi, that is, at the city hall. Tax on the resale of real estate: according to the legislation of the TR, a foreigner who has owned real estate for more than 5 years is exempt from paying tax on the profit received from the resale. If you decide to resell your property before the expiration of the specified period, then you pay tax on the difference between the purchase price and the sale price based on an expert assessment. If the difference amount is notexceeds 19,000 Turkish lira, then you are exempt from paying tax. Either: from 19.000 TL to 24.000 TL - 15% from 24.000 TL to 53.000 TL - 20% from 53.000 TL to 130.000 TL - 27% from 130,000 TL to 650,000 TL - 35% above 650,000 TL – 40% Expenses for examination The examination is issued by licensed companies of the Banking Regulation and Supervision Institution (Bankacılık Düzenleme ve Denetleme Kurumu), as well as the Capital Market Council (Sermaye Piyasası Kurulu). This procedure is paid and its cost today will be 2300 Turkish Liras, including VAT. Payment and procedure must be completed before submitting documents for TAPU. In this case, the validity period of the issued expert report is 90 days from the date of issue. Information in this document: - cadastral data of the site on which the property is located - area of land that belongs to the new owner (proportional to the size of the purchased housing) -object type - presence/absence of an act of putting the house in which the object is located into operation (İSKAN) and permission to use the property or its independent part - the estimated value of the property, indicated in lira. If the object has not yet been built, the expert report will indicate its future value, that is, the price at the time the object is completed; the plan of the object and its area - presence/absence of all possible types of encumbrances on this property - a description of the area in which the object is purchased to determine its future liquidity. Income tax Income tax will range from 15% to 40%. It is not charged under one condition if the annual income does not exceed 7000 Turkish Liras. Further, the calculation system is identical to the tax table for the resale of real estate, with the exception of the starting amount. up to 24.000 TL - 15% up to 53.000 TL - 20% up to 130,000 TL - 27% up to 650,000 TL - 35%above 650,000 TL -40% Income received from real estate by a foreigner is taxed only in the territory of the TR. For legal entities, rates are always calculated at 20%. In the case of commercial real estate, if the property is rented to an enterprise (official taxpayer), this limit will be up to 49,000 Turkish Lira per year. If it is rented to small workers' establishments (for example, a hairdresser), then 2,200 Turkish Liras per year. Inheritance and gift taxes Here the percentage is determined according to the cost of the object. Taking into account the heirs represented by the spouse and child (or children), no tax is charged if the value of the property is up to 334,534 Turkish Liras. If the person to whom the inheritance is transferred is only the spouse (if there are no children), then this figure is limited to the amount of 669,479 Turkish Liras. Table : from 334.534 TL to 380.000 TL – inheritance 1% and donation 10% from 380,000 TL to 900,000 TL - 3% and 15% from 900.000 TL to 1.900.00 TL - 5% and 20% from 1.900.000 TL to 3.600.000 TL - 7% and 25% from 3.600.000 TL to 6.780.000 TL - 10% and 30% + Mandatory DASK insurance. The abbreviation DASK stands foraka Doğal Afet Sigortaları Kurumu, which literally translates as Natural Disaster Insurance Organization. The cost of insurance ranges from 15 to 150 euros. Business taxation Tax on income from rental property. If rental income is received by an enterprise established in Turkey, it is considered direct corporate income. Businesses are subject to corporation tax at 20%, with the ability to deduct staff costs and financial expenses from profits. Tax on profits from the sale of real estate Business taxes are designed in accordance with the provisions of business income. Again, the above expenses are deducted from the proceeds of the sale of the property. Exemption from payment of transport tax for foreigners If a foreigner has an official permit to work in Turkey, then he is not subject to tax when buying a new car from a dealer in Turkey, buying a used duty-free car from another foreigner, or when importing a car from his country into Turkey. That is, a foreigner has the right to purchase a new car from an official dealer without paying a special consumption tax (Özel Tüketim Vergisi – ÖTV) or value added tax...
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