All you need to know about real estate taxes and fees in Turkey!

The Turkish government aims to grow its economy through one of the most active markets in Turkey which is real estate to achieve Vision 2023. It provides investors with all the facilities that encourage them to enter the real estate industry in this country. It also offers apartments for sale in Istanbul with the aim of attracting visitors, real estate investors in Istanbul, and international students.

Taxes paid on real estate in Turkey include Turks as well as foreigners. No taxes are levied only on foreigners. What's been alleged to be a scam by those who target foreigners who have no knowledge of real estate laws in Turkey and don't know the tax system there. So we give you our experience and advice to help you figure out all the tax and fee specifics when buying real estate in Turkey.

Most of the questions of those wishing to buy real estate in Turkey centre around the value of taxes and additional expenses that the programmer will pay in addition to the total cost of the property in Turkey and the questions have turned into a real obsession that pursues many investors looking to save the enormous amount of expenses and thus have a successful deal in the Turkish real estate market that It is witnessing record turnout by foreign owners in recent years due to its attractiveness and the growth of real estate projects in an unprecedented way.

Decisions to reduce the value of real estate taxes in Turkey have contributed to an increase in foreign demand on the Turkish real estate market with various types of real estate, and here the offers of construction companies, brokerage and real estate development companies increased, where we find many advertising campaigns and advertisements promoting "apartments for sale in Turkey, villas for sale in Turkey, Lands for sale in Turkey, shops for sale in Turkey, offices for sale in Turkey, hotel apartments for sale in Turkey and others .. ".

In the following article, we will learn about taxes and fees in Turkey, about their value, types, how to calculate and pay them, and also the duration of payment, to enrich the information of every foreigner who wants to own real estate in Turkey. 

What is meant by real estate taxes in Turkey?

Real estate taxes in Turkey are in-kind amounts paid by both the buyer and seller to the tax department - the real estate authority - when buying a property in Turkey or transferring its ownership from the seller to the buyer.

Concerning foreigners, they pay the same value of taxes that the Turks pay, that is, there is no additional value for non-Turks during their transactions to buy real estate in Turkey, transfer its ownership, or even during the process of inheriting it.

Alhuda Real Estate Investment in Turkey confirms that all information indicating that foreigners pay higher values on real estate taxes and fees is false and unfounded information aimed at deceiving and deceiving foreigners who are ignorant of real estate ownership laws in Turkey or have simple details in this regard.

Based on the previous information, it is preferable for foreigners wishing to buy real estate in Turkey to seek the help of reliable real estate companies such as Alhuda, which provide free advice to its clients regarding taxes, as well as laws and everything related to the real estate market in Turkey.

Types of Real Estate Taxes In Turkey

Turkey has been able to attract many foreigners for real estate investment since the law abolishing reciprocity in 2012, which allowed a foreigner to buy all types of real estate in Turkey with the possibility of inheriting them and benefiting from real estate residence and also the option of obtaining Turkish citizenship by investment in exchange for buying a property in turkey of 250 thousand US dollars only.

Property taxes levied by the Turkish Government do not interfere with the country's services. They are a competitive advantage and a strong facility compared to other countries' property taxes, especially in Europe. Land taxes in Turkey are divided into three categories:

• One-time Payment Taxes.
• Yearly Taxes.
• Monthly Taxes. (Monthly Maintenance AIDAT)

Property One-Time Payment Taxes

• VAT

It refers to the taxes that are paid only once with the value-added tax, which ranges from 1 to 18% of the total value of the property and is paid once upon completion of the ownership procedures. Its percentage is determined according to criteria, the most important of which is the geographical location of the property, its type and the price per square meter in it, where the tax is determined. The added value is according to the net area of the property and not its total area.

Turkish government offered a surprise that is: you can get rid of it but on conditions. This law was issued in February 2017:

The abolition of VAT on the purchase of real estate in Turkey in the right of foreign investors, or Turkish expatriates living and working outside Turkey for more than half a year. Where this tax exemption is applied on condition of payment of the value of property in foreign currencies. And not to sell the property until at least one year from the date of purchase.

It is only in Turkey, away from other countries, that such taxes are levied.

• Tapu Real Estate Tax

The value of this tax is 4% of the total amount specified for the property in the sale contract, and it is imposed upon registering the title deeds, i.e. at the moment of registering the title deed at the Real Estate Registry Department in Turkey.

The value of the title deed tax is paid equally between the seller and the buyer at the moment of transferring the ownership, i.e. buying or selling, and also even when the property is inherited for the benefit of those entitled to it from the family of the actual owner.

Fees payable upon registration of title:

• $ 60 to get a stamp on behalf of the buyer.
• $ 50 for the translation of your passport to the Turkish language, to be certified.
• $ 200, the property transfer fee, payable upon receipt of the transfer request.
• $ 100, if you do not speak Turkish, and you want a translator to accompany you in finishing the proceedings.

• Yearly Taxes

This tax amounts to 3.9% of the total property value and is payable during the final ownership of the property.

Municipal Taxes:

The percent of this tax is 0.03% of the property price, paid once every year, in return for the services provided by the Turkish municipalities.

Insurance of real estate in Turkey against natural disasters:

It equals $100 Approx. It is to secure your home or apartment against natural disasters, such as: earthquakes.

Monthly Taxes (Monthly Maintenance AIDAT)

This tax is 2 – 5 Turkish lira per square meter. It is paid to the companies supervising the residential complexes in return for the services provided by the company to the residential complex such as: swimming pools, gardens, playgrounds, environmental cleanliness, maintenance and other important services.

Types of real estate fees in Turkey

In addition to taxes, the process of buying a property in Turkey is linked to fees that are paid during the ownership steps, which are as follows:

• Translation fee

The real estate buyer must pay the costs of translating the various documents he needs while owning the property, such as a passport etc.

• Accompanying fees for the translator 

The buyer of the property must pay the expenses of the translator accompanying him during the ownership steps, whether the translator is from Turkish to Arabic, from Turkish to English, or from Turkish to Persian and others.

• Notary Fees

They are the fees that are paid to the notary while certifying various documents after translating them into the Turkish language, such as a passport, and they do not exceed 50 dollars in their entirety.

• Transfer ownership fees

They are fees for transferring ownership of the property that is paid at the Maps Office at the Land Registry Department, and their value usually does not exceed $ 200.

• Fees for obtaining tapu

It is a fee that the buyer pays after obtaining the tapu, i.e. the title deed, from the Land Registry Department, and generally, it does not exceed $ 60.

In general, it can be said that additional taxes and fees can cost the owner approximately 8% of the total value of the property to be purchased.

These were the most important taxes and fees imposed on the owner in Turkey, the weather during the property purchase process or after owning and managing the property.

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