The procedures and the system related to property tax in Turkey are simple and easy to manage.
Along with the fact that property prices in Turkey are low in comparison to European countries, come the laws that facilitate buying property in Turkey and the tax system related to it.
So, what are the procedures followed when buying a property in Turkey?
What are the property Taxes in Turkey? How to estimate and pay property tax in Turkey?
Property Tax in Turkey and Buying a Property
In 2012 Turkey allowed foreigners to buy properties in Turkey directly, these properties are subject to the inheritance of Turkish laws.
Most importantly these laws also made it easier to buy a property in Turkey.
Subsequently, foreign property owners in Turkey are granted the right to have a residency permit in Turkey for the property owner and his family.
In addition, if the property or properties owned by the foreign investor is equal to 250,000 USD, they are granted the Turkish Nationality.
Moreover, these laws made the Turkish real estate market more appealing to foreign buyers.
Furthermore, Foreign property investors in Turkey can acquire any type of property unless the property is owned by the Turkish government or Military.
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Necessary documents required to buy a property in Turkey
– A translated and notarized copy of the passport.
– Turkish tax number.
– 4 biometric personal photos
– Property Evaluation report-After receiving the title deed the foreign property owner can apply for the residency permit, as well as Turkish citizenship if the property is worth over 250.000 us dollars.
Also owning a property in Turkey grants you and your family the right to reside in Turkey.
The property residency permit is an ID with a Turkish national number that abolishes the need to get a visa every time you want to visit Turkey.
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Turkish citizenship by property investment
Real estate investment in Turkey grants you the right to Turkish citizenship if the property is worth 250 thousand USD.
Nevertheless one of the conditions is not to sell the property or properties for 3 years.
After this period, you can make the decision to either keep the property or resell it.The investors’ families are also eligible for Turkish citizenship, kids 18 years old and younger. The investors’ children are born Turkish.
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Tax property in Turkey:
Property tax in Turkey is divided into three main categories paid by foreigners as well as the locals:
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One-time paid property Taxes
1- The tax of the added value
It is between 1% to 18% of the property value.
The factors affecting the percentage of this tax are related to the type of property, as well as the location and the price of the square meter of the land on which the property is constructed.
The net space of the property is also a factor in determining the percentage of this tax. The added value tax is payable one time after receiving the title deed.
2- Stamp duty tax
This tax is payable upon transferring the ownership of the property.
Stamp duty tax is 4% of the property’s worth. It is also due when transferring the ownership to the inheritors.
3- There are also other property taxes due when concluding the purchase process:
– Notary: it is due for translating and notarizing the documents needed it costs around 50 us dollars.
– Title deed fee: it is due upon printing the title deed with the name of the new owner.
It costs around 60 US dollars.
– Property ownership tax is 3.9% of the value of the property.
– Property transfer fee payable upon receiving the request of transferring the ownership in the registration office. It costs 200 us dollars
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Annual property tax in Turkey
1- municipality tax, 0.03% of the property worth is due annually.
For example: If the property is worth 100,000 us dollars the tax is 30 us dollars.
This tax is due each year in May.
2- Insurance tax is a mandatory tax to ensure the property against earthquakes and other natural disasters.
It is 2 dollars per square meter.
For example, if the property is 150 square meters the tax would be 300 us dollars.
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Paying taxes and property management
property management in Turkey is an easy process, all you need is a bank account with a phone application that links to bills and payables related to the property.
As far as renting and reselling the property the investor can use the help of a real estate agency that provides these services.
The Turkish real estate market has proven itself against the economic turbulences recently. It provides real estate opportunities that have proven profitable and steady.
In addition to this, foreigners find Turkey a second home due to its international appeal and multicultural community. along with being a logistic country for managing a business.
Real estate prices in Turkey are low in comparison to the costs in European countries and property laws are clear and simple.
All of these factors made the Turkish real estate market a destination for many.
