Before buying overseas property, you must know exactly what you have to pay for taxes in this country. Upon receipt of Tapu property buyers in Turkey must pay tax at 4 % of the cadastral value of property specified in the certificate of ownership Tapu (average 1000-2000 euros).
While selling a property, income tax is paid only if the individual owner of the property was owning the property less than 5 years. Profit is defined as the difference between the value specified in the Tapu subject on which you bought it and the price for how much you sell it. If the profit is not more than 6000 TL, the tax rate is 20% if more profit 140,000 TL – increased to 45%. It is important to know that if you decide to save on tax and claim a small amount of your income, the authorities have the right to overestimate your property at market value and confirm the real price .
If the property owner is a legal entity, the tax on profits from the sale of real estate is 20% for any amount of profits.
Annual property taxes in Turkey
The annual tax on property in Turkey is calculated from the cadastral value declared when buying and specified in Tapu :
residential property – 0.1% ; commercial property – 0.4 % ; agricultural land – 0.2 % ; a land with permission to build commercial buildings – 0.6%.
Thus, today, the amount of tax on average : apartments for 50-60 euros per year for the villas – 100 euros per year.
In the first 4 years of buyers – the citizens of the Turkish Republic are exempt from paying the annual tax on property in Turkey. But foreigners do not have this privilege yet .
For example: Apartment in a residential complex with:
swimming pool ,
1 +1 (1 bedroom + 1 living room),
area of 65 m2 ,
price 62 000 Euros,
1 km from the sea .
Price of property 50.000 €
Paperwork (approximately ) 500 €
Connecting Communications (approximately 300 €)
Fixed charges of 1000 €
Fully furnished (approximately ) 5.000 €
Total property price with all costs and fees 56.800 €