Real estate tax
Real estate tax is considered one of the most important topics that should be known by the real estate investor or people wishing to own apartments for sale. It comes before making the decision to purchase real estate for sale or investment, and it is imposed by the state at a certain amount of the value of the property.
Here we will talk about the real estate tax in Turkey, and before that we want to mention that the most important thing that distinguishes the real estate tax system in Turkey is that it does not differentiate between Turkish citizens and foreigners in the amount of tax amounts paid, meaning that the value of real estate taxes for Turks is the same as the value paid by foreigners. Which makes investment and purchase in Turkey more desirable than others.
We will talk about how to pay real estate tax in Türkiye, what are its types, and the amount of the tax:
In our topic, we will discuss several points, the most important of which are:
What is the real estate tax in Türkiye?
Types of real estate tax in Turkey.
Fine for late payment of property tax in Türkiye.
What is the real estate tax:
These are amounts of money according to fees imposed by the state on real estate in Turkey, estimated at a certain amount imposed by the state and due in the event of owning a property in Turkey or transferring its ownership. These amounts are paid by the seller or buyer, or both together, to the Turkish Tax Collection Department or through the website. The tax department within a specified period of time so as not to impose a penalty for failure to pay on time.
Property tax classifications in Türkiye:
First: One-time property tax paid:
The value of this tax is determined according to the type of property, the area in which the property is located, the average price per square meter of the land on which the property is built, the actual area of the property, and the level of services present in the residential building that includes the property.
This value ranges from 1% in rural and simple areas to 18% in large cities and upscale neighborhoods close to services. This tax is paid to the tax collection department by the company establishing the property and is included in the price of the property.
Real estate registration tax in Türkiye (Real Estate Tapu):
This tax is imposed upon registering the title deed within the Land Registry Department in Turkey, and its value is equivalent to 4% of the price of the property registered in the sales contract. This tax is paid divided by both the seller and the buyer, meaning that the seller pays 2% of the property price and the buyer pays the value. The same, but what is usual is that the buyer bears the price of the tax alone.
This tax is also due when owning a property in Turkey and when purchasing villas for investment in Turkey, as well as the process of transferring ownership of the property from the owner to the heirs, as the tax is paid during the ownership transfer procedures.
Second: Paying the annual real estate tax:
1/ Earthquake and natural disaster insurance tax:
It is a tax paid annually by the property owner in Turkey against earthquakes and natural disasters, and its value is determined according to the area of the property, equivalent to $2 per square meter of the actual property area.
2/ Real estate profits tax or income tax:
This tax is imposed upon any sale of a property in Turkey, and is paid by the buyer within five years from the date of purchase. This tax is calculated according to subject segments, where the difference between the purchase price of the property in the title deed and its selling price is calculated, where the percentages and segments are estimated from Before the Turkish criminal registry, this percentage ranges from 15% to 45% of the value of profits.
3/ Annual municipal tax in Türkiye:
These are fees imposed by municipalities on real estate and paid for the service and improvements carried out by the municipality in the area.
Third/monthly property tax:
These are the monthly revenues paid by the tenant or owner, whose amount varies according to whether it is a residential complex or a building, and increases the more services provided or that serve the area, such as security, guarding, cleaning, elevators, and parking, as well as additional and recreational services such as providing halls. Sports, swimming pools, cafes and other services.
All expenses and expenses are collected and divided among the complex residents according to the property law under the supervision of the complex management.
How to pay real estate tax in Türkiye:
1/ The real estate investor or property owners can pay the property tax in Türkiye through government applications designated for this purpose.
2/ Seeking help from a real estate company or real estate brokerage company to pay these taxes.
3/ Payment can be made by real estate owners opening bank accounts for them in Turkey to facilitate the payment of the property tax, and payments are proven via bank receipts.
Fines for late payment of real estate tax in Türkiye:
Financial fines are imposed on those who are late in paying the property tax in Turkey in progressive rates, and these fines multiply as the delay increases, and the matter may lead to the appearance of the property owner in Turkey who is late in paying the property tax before the Turkish judiciary, which puts the property owner in front of legal problems with undesirable consequences, and fines. This may exceed the original tax value.
Therefore, it is best to pay these taxes on time in order to avoid financial penalties that may result from delay.
Globinia Real Estate Company has presented to you the most important points that you must know regarding real estate tax in Turkey, and you can also contact us for more information or inquiries about everything related to real estate investment.