Is There Any Property Tax in Turkey?

Are you interested in moving to Turkey, but you aren’t sure if you’ll be liable for property taxes? The answer depends on the city you’re looking at and there are different taxes depending on whether you own or rent the home. If you’re looking to buy, you’ll have to pay a tax for the value of the land you buy. However, if you’re renting, you’ll have no responsibility for the value of the property, and it’s up to you to negotiate the price with the landlord.

Tax exemptions on real estate

The Turkish government has offered tax exemptions on real estate. These benefits aim to make investment in Turkey more appealing. But investors must be careful when choosing real estate. Before buying property in Turkey, they should consult with a financial advisor.

Real estate in Turkey can be divided into two categories – newly built and old. New properties are eligible for tax exemptions. This includes apartments, offices, retail shops, and commercial properties. On the other hand, the old real estate is not.

There are some conditions that you need to meet before applying for a tax exemption. First, you need to secure the required documents. Secondly, you need to apply for a “Tax Exemption Certificate” from the Turkish tax authorities. Lastly, you need to complete the transaction.

Tax exemption on real estate in Turkey may benefit both local and foreign investors. However, foreigners must be careful when acquiring tax exemption.

Revaluation of tax values

If you own an immovable property, you may be required to revalue it. This process is designed to equalize your tax values and increase your equity. The rate of revaluation is determined by the Ministry of Finance. It is based on the average rate of inflation for the preceding year.

In addition to the revaluation, there are other factors that can affect the value of your property. These include the quality of construction, location, and size. However, it is important to remember that these factors are not the only determinants of your property’s value.

Property values also vary depending on the age and condition of your home. It is not unusual for older homes to rise in value more slowly than newer homes.

Another important aspect of the revaluation process is the adjustment of depreciation. If you have a depreciable asset, you may be eligible for a higher deduction in depreciation for the remaining useful life of your asset.

Payment options

If you are buying or renting a property in Turkey, you will have to pay certain taxes. The amount of tax you need to pay will depend on the type of property you purchase.

There are two main forms of property tax in Turkey. First, you will have to pay the transfer tax. This is a one-time fee. It is usually based on the contract value.

You can also opt to pay your property tax in installments. Depending on the size of your real estate, the installment payments will vary. To make your payment, you can use the EFT system or the money transfer service.

In addition to the tax, you will also have to pay stamp duty. Purchasing tax is 4% of the purchase price. Stamp duty is a tax on legal documents.

The Turkish VAT rate is 18 percent. Commercial properties with a net area of 150 square meters or more will be subject to 18% VAT.

Double tax

If you have a rental income from a property in Turkey, you will need to calculate the tax on it. The tax is levied on the difference between cadastral property value and market value. This is calculated at a progressive rate of 15 to 40%. It is also possible to apply for tax deductions.

Turkey’s income tax is based on a Pay As You Earn (PAYE) system. In addition, you may be entitled to deductions on your contributions to social security.

Turkey’s income tax on real estate is based on a progressive scale. The first L3600 of the income you receive from your property is subject to tax, after which you will not be required to pay any further income tax.

Property taxes in Turkey vary by city and type of property. For example, if you own a residential property with a net area of 150 m2, you will be subject to 18 percent VAT.