Property Taxes in Turkey: A Comprehensive Guide

There is an excellent demand from Arabs and other nationalities to buy real estate throughout Turkey, in conjunction with the positive results achieved by this sector in the country.

In conjunction with this demand, those wishing to buy a property in Turkey or enter the real estate investment sector in Turkey should know the types of taxes imposed on real estate in Turkey.

Those who wish to own a property in Turkey must consider two types of taxes: some are paid once, and some are paid annually.

Taxes that are paid for the first time:

Value-added tax: This tax is paid once when buying a property in Turkey, and its value ranges from 1% to 8% and sometimes reaches 18%, and it is determined according to the type of property, its area, its location, and some other factors.

OmranTRK draws the attention of its customers to the fact that only those who enjoy this tax exemption are: foreign individuals not residing in Turkey and foreign legal entities not located in Turkey.

It should also be noted that the property benefiting from the tax exemption can only be sold again once a year is passed. In addition, the exemption from value-added tax covers only newly built properties sold for the first time, and the exemption does not include old properties.

Real estate registration tax: This tax is calculated based on 4% of the official value declared when registering the property, It is usually charged to the buyer, but sometimes to encourage investment, some companies share the amount equally with the buyer.

Ownership transfer tax to heirs: It is the same as the property transfer tax when registering the property and is equivalent to (4%) of the official property value that will be recorded in the Land Registry Department.

Real estate profit tax: If the investor owns capital and buys a property in Turkey and decides to sell it before it exceeds five years from the date of its purchase, they will have to pay a tax on the property they won from, and if the property is not sold until after it exceeds Five years from the date of the purchase they will never pay taxes on the profit of the property, and this will be in their favor since they will be exempted from paying the taxes first, and the gain in their property will increase second.

Annual and monthly taxes:

Earthquake insurance: This insurance is mandatory on homes throughout Turkey, unlike the optional public property insurance. Earthquake insurance is calculated based on the area of ​​the house per square meter, equivalent to 2 US dollars. This insurance can be obtained through a service called DASK, provided by most Turkish banks. Its fees are paid annually.

Real estate tax: When you obtain the documents proving the property's ownership transfer to your name (title deed), you are obligated to pay an annual tax imposed by the Turkish state. This tax is paid to the local municipality, whose value is 0.003 of the real property, called Emlak Vergi, in exchange for the services the city provides to the population.

This tax has several factors that contribute to its calculation, namely the location of the property (inside or outside major cities), the type and area of ​​the property, and the official property value registered in the land registry.

Monthly taxes within residential complexes: also called (monthly returns) for services that include protection, cleaning fees, compound electricity fees, elevator, and other services.

Municipal tax: These taxes are paid annually to the municipality of the area where the property or establishment is administratively affiliated with the borders of this municipality.

Any property owner in Turkey or a real estate investor can pay taxes in several ways:

  • Through government applications designated for this,
  • Through a real estate company or real estate brokerage company,
  • Real estate owners in Turkey can open a bank account in Turkey to facilitate the payment of these taxes, and payments are proven via bank receipts.

It must be noted here that whoever is late in paying the tax will incur a fine, and in the event of a long delay in payment, this fine will increase a lot and may reach a value greater than the basic tax.

It is worth mentioning that they are exempted from paying taxes, but in a few limited cases, such as if this person owns only one property, also relatives of the martyrs, the unemployed, and the disabled, but this category was conditioned by specific laws to be fulfilled.

It is noteworthy that the "OmranTrk" company provides its customers with all services, offers, and facilities simultaneously, to be the leading company whose success starts from "Yalova" city in northwestern Turkey and an example to follow in the real estate world.

OmranTrk has acquired significant experience in the real estate market since its inception in 2016 until now, which has earned it the confidence of the responsible real estate authorities of the real estate government and responsible for regulating the real estate sector in its various axes.

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