What is the property transfer tax in Turkey?
When considering buying property in Istanbul or other cities, it is necessary to know everything related to real estate taxes in Turkey, such as the one-off property transfer tax, in addition to annual taxes such as the profit tax, and monthly taxes such as the income tax.
Real estate taxes in Turkey are levied at the same value on both the Turkish citizen and the foreign investor, and there are no additional taxes for foreigners when investing in real estate in Turkey, whether on transfer of ownership, sale or inheritance.
In this article from Taksim Real Estate Consulting, we showcase the property transfer tax in Turkey, its rate, how it is calculated, in addition to the documents required to complete the property transfer procedures; Follow with us.
What is the property transfer tax in Turkey?
This is a tax imposed at the time of registration of the property at the Land Registry Department, known as the Title Deed in Turkey, estimated at 4% of the value of the property, paid by both the buyer and the seller..
However, it is traditionally the case that only the buyer pays the property tax, unless otherwise agreed between the two parties.
It should be noted that this tax is linked to the transfer of ownership of the property; therefore, legal heirs pay it when registering the title deed in their name instead of the deceased owner, as part of the inheritance procedures in Turkey.
Additional costs when transferring ownership of the title deed
From 2021 onwards, an additional service charge of 23.50 Turkish liras has been levied for the revolving fund, in addition to the 171.25 Turkish liras, to be paid equally between the seller and the buyer, unless otherwise agreed.
How are property transfer taxes calculated?
Property transfer tax charge = the purchase amount of the title deed x the specified tax rate + 194.75 liras additional service charge. Example:
If the price of the property is registered in the title deed at a value of 100 thousand Turkish liras, the transfer tax is equal to:
(100,000 x 0.4) + 194.75 = 4194.75 Turkish Liras, to be paid in equal parts by the seller and the buyer, unless there is an agreement that stipulates otherwise.
Documents required for the transfer of ownership of real estate in Turkey
The procedures for transferring ownership of real estate in Turkey require the submission of a set of documents, both for the seller and the buyer, which are as follows:
Documents required from the seller of the property:
1. Original or copy of title deed
2. A personal photo
3. Original and copy of identity card or passport
4. Earthquake insurance document (DASK)
5. Property valuation document
Documents required from the buyer:
1.Two (2) personal photos
2.Original and copy of passport translated and certified by a notary.
If a real estate agent is acting on behalf of the seller or buyer, he/she is required to present an official power of attorney certified by a notary.
This presentation has been a comprehensive overview of everything related to the property transfer tax in Turkey, and the required documents; in the aim that the procedures to own a real estate unit are completed.
If you would like to know more about the types of taxes in Turkey in general, and the property transfer tax in particular, please do not hesitate to contact us at Taksim Real Estate Consultancy, and our legal team will be happy to provide adequate answers to your queries... Contact us now!
Editor: Taksim Real Estate Consulting©
Source: Tapu Department
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