Elite Sinerji-Blog-Real Estate Taxes in Turkey 2023

Turkey attracts foreigners with excellent conditions for summer holidays on the sea coast, high standards of service, hot climate and stunning nature. In addition to a great holiday, the Republic of Turkey offers investors from all over the world excellent opportunities for profitable investment in real estate.

The popularity of investments in square meters in Turkey is explained not only by the favorable location of the country, affordable prices, a simple and transparent purchase procedure, high quality construction and excellent prospects, but also by operating costs that compare favorably with the countries of the European Union and the US and rather low taxes.

Turkish citizens and foreigners who own real estate in the Republic of Turkey pay the same taxes. But the property tax rate in Turkey varies by province. The cost of taxation will be high for property owners, for example in Istanbul, Antalya, Izmir, Ankara, Eskisehir, Konya, Samsun, etc. The more popular the city, the higher the cost of the tax.

Tax When Buying Property In Turkey

When buying property in Turkey, you need to take into account the tax liability, which is paid by the buyer once. Real estate acquisition tax (Tapu Harcı) is calculated based on the cadastral value of the property and is about 4% (the value indicated in Tapu). This tax must be paid before obtaining a title deed (Tapu) from the Land Registry.

Property Resale Tax

When reselling real estate in Turkey, if its cadastral value is higher than at the time of purchase, you must pay a tax on the difference (gelir vergisi). The tax rate is progressive and ranges from 15% to 35%. However, if you have owned the property for more than five years, you are exempt from paying this tax.

Property tax

Property ownership tax in Turkey, known as “emlak vergisi”, is a mandatory annual payment for property owners in the country. This tax is levied on the basis of the value of the property and is an important component of government revenue. Property tax rate in Turkey may vary depending on various factors such as location, type of property, floor, area. Typically, the tax rate is around 0.2-0.6% of the appraised value of the property. Estimated value is determined by local tax authorities.

Property owners are given a certain period to pay the tax. This usually happens once a year, but some municipalities may allow the tax to be split into multiple payments throughout the year. The method of paying the tax is through a bank transfer, payment systems or in cash. For all payment methods, you need a TAPU and a passport.

If the owner of the property does not pay taxes on time, penalties may be applied. Penalties may vary depending on the amount owed and the length of the delay. Therefore, it is important to follow the deadlines for paying taxes and comply with the law.

It is also worth noting that the property tax in Turkey can be increased in case of repair or construction work on the property. In this case, the value of the property may be recalculated and the tax rate may change.

In general, property tax in Turkey is an important source of revenue for the state. It helps fund various community programs and services such as infrastructure, education, healthcare, and more. Therefore, the payment of property tax is a civic duty of every property owner in Turkey.

If you have any questions or need to get more detailed information about property taxes in Turkey, please contact Elite Sinerji Construction managers.