In recent times, the Turkish real estate industry has witnessed a lot of development and growth. Many investors are attracted to the investment opportunities in the property sector. There are a lot of opportunities in Turkey for people looking to make successful business decisions.
Turkish property tax
In Turkey, there is a tax paid on property by foreigners. Based on the Land Registry and the Cadastre Directorate, property owners are expected to pay tax that is about 4% of the value of the land. This total value of the land is usually lower than the sales price of the property. Also, unless there is a different type of agreement between both parties, the Turkish law on real estate tax experts the buyer and the seller to each pay 2% as tax on the property.
How to calculate property tax in Turkey
The property tax in Turkey is calculated by using a special method that involves taking cognizance of certain attributes of the property.
Calculating property tax in Turkey: Things to know
The unit value per square metre of the land that the property occupies as well as the total square meterage that the property covers.
The square meterage costs are based on the building carcass, wood, concrete, or masonry of the buildings and the house and the class of construction.
The tax rates of the businesses and residences that are outside or within this metropolitan municipality.
The total measurement of the external area of the building
Reduction of wear allowance
The difference between the elevator and the heater
The different ways to calculate property tax in Turkey
If you are looking to calculate the Turkish property tax, this can be done in two primary ways:
The median value in the scale that shows the usual cost of construction in square meterage gets multiplied by the building’s surface area.
The differences obtained due to the above multiplication operation will be added to the value obtained of the differences in the heating, air conditioning, or elevator installation if available. This additional value is usually 8% for the air conditioning or heating and 6% for the elevator.
Therefore, the depreciation recorded which depends on the type of construction and property age gets deducted from the total figure obtained above.
After the depreciation amount has been removed, the size or amount of the land calculated based on the minimum measurements gets added to the amount obtained above.
This is how you calculate the property tax in Turkey for a specific building or facility.
Yearly taxes on property in Turkey
In Turkey, all property owners in the country will have to pay an additional yearly tax to the government of the country. In Turkey, all the cities therein are divided as either small or big. Therefore, the total tax on real estate that you pay on your property is based on the property type and the city size. For example, based on this assumption, the total amount of property tax that you pay in Istanbul is about 0.2% of the value of the property. The property tax that you pay will be computed based on the property type and whether they are located in a small or a big city. It can be calculated as thus:
Big cities: For all big cities, the property tax is 0.2% (residential properties), 0.4 % (commercial properties), 0.6% (lands), and 0.2% (farms).
Small cities: In the smaller cities, the property tax is 0.1% (residential properties), 0.2 % (commercial properties), 0.3% (lands), and 0.1% (farms).