Property taxes in Turkey: How much are foreigners supposed to pay every year?
A Broward County Property Appraiser usually evaluates the amount of tax that a foreigner or a Turkish citizen is supposed to pay as taxes.
The Turkish tax on a property can fall anywhere between 0.1% and 0.6%. This rate depends on the property that you have bought. It is also determined by the city that you have bought the property.
This means that you get a tax rate of 0.2% if you are buying normal properties like buildings or apartments located close to large cities. Based on the properties that are located in big municipalities, the rate of property tax is about 0.4% annually.
If you have houses that are located around big cities, then your property tax will be about 0.2% every year. Then again, if you have chosen to live around the surrounding neighborhoods then you will be charged with a property tax rate of 0.1%.
When it comes to commercial property tax in Turkey, a Broward County Property Appraiser can easily evaluate this. Commercial properties in the country are charged at a rate of 0.4% annually.
Foreigners who have lands in the form of commercial properties are expected to pay a tax rate of 0.6%. It is important to note that the final tax payment are calculated based on the value of the property.
This means that if you buy a residential property in Istanbul at $250,000, you will be expected to pay a tax of 0.2%. This will amount to 0.2 multiplied by 250,000 which equals to a property tax of $500.
A commercial building in Istanbul at a value of $250,000 will attract a tax rate of $1,000. A land bought in Istanbul for $250,000 will get a tax of $1,500.
In Turkey, you can not buy a property without paying your VAT. Although, there are few exceptions to this rule. If you buy a commercial property, you will be expected to pay a VAT of 18%. However, for residential properties, the VAT will usually vary. VATs are calculated using two cases like:
All apartments with a total area of over 150 square meters will get a VAT rate of 18%.
All apartments whose total area is lower than 150 square meters get a VAT rate of about 1% rate.
In Turkey, it is important for foreigners to note that rented properties are not expected to pay any VAT. This same rule goes for ordinary people who have decided to sell off their properties.
However, if you have decided to sell off or buy your property using a real estate agent, then you will need to pay a VAT rate of 1% rate.
Turkish Property Law
A Broward County Property Appraiser usually complies with Turkish property law with all transactions. There is a Land Registry Law in the country that guides the property acquisition process that says that only 183 nationalities are allowed to buy lands and houses (properties) in the country. If you are buying any commercial property, you will need to take out earthquake insurance.
The Land Registry Office is responsible for a pre-sales approval which is needed for all property purchases in Turkey. Also, the Turkish Council of Ministers will have to approve any transaction involving a foreigner buying any land in Turkey.