It is important for every investor who wants to buy a property in Turkey to know the types of taxes and their value, as some of these taxes you cannot buy any property without paying them, and real estate taxes are divided into:
- Property Transfer Tax “Tapu”
It is an amount of money paid only once, also called title deed expenses, and its value is 4% of the value of the property, paid when selling or buying any property by both the seller and the buyer, according to the agreement between them.
- KDV (VAT)
It is a tax on commercial real estate, and it is considered one of the types of real estate taxes in Turkey and is paid only once and its value ranges between 1% and 18% of the total value of the property and is paid after the completion of the ownership procedures.
As for the value of this tax, it is determined by several factors:
- Geographical location
- Property Type
- Price per meter of purchase
- Area
It is the only tax from which the foreign investor can be exempted.
3. Annual property tax “Emlak Vergisi”
It is one of the real estate taxes that are paid annually and periodically for the services provided by the municipality to the residents.
Its value varies based on the type of property and its location, if the property is located within the major municipality, the tax value ranges between 2 and 6 per thousand of the value of the property, depending on its type.
If the property is located outside the major municipality, the tax value is between 1 and 3 per thousand of the value of the property.
This tax can be paid in one or two instalments.
4. Capital Gains Tax
This tax is paid after the sale of the property from the profit difference between the purchase value of the property and the value of its sale within five years.
Its value ranges between 15 and 35 percent of the value of the profit difference and is paid on all types of real estate (apartment – land – shop – villa ….)
5. Compulsory insurance for earthquakes and natural disasters “DASK”
Where earthquake and natural disaster insurance on homes is mandatory in Turkey
It is calculated based on the area of the house and is estimated at every square meter of one area
The house is for 2 USD and paid annually.
6. Fees for confirming the initial purchase contract at the notary public (Notre)
It is an optional fee in the event that the property is under construction and purchased in installments, it is not possible to transfer ownership and obtain the title deed directly in this case, so a preliminary sale contract is written between the seller and the buyer, and then this sale is registered and confirmed at the notary public to guarantee the buyer his right, and the value of these fees is estimated at 1% of the value of the property.
7. Electricity and water fees
It is an amount paid as a deposit at the first time the electricity and water meters are opened, and it is recovered when these meters are closed .
The value of the insurance varies depending on whether the property is new or has a previous owner.
8. Monthly taxes within residential complexes
It is a monthly amount paid for the services provided by the complex to the residents.
Such as swimming pools, sports clubs, playgrounds and gardens, and this amount is calculated based on the total area of the apartment and the quality and level of services provided