Taxes & Handy info

 

Buying process

After the new bill takes effect, purchasing a property in Turkey by foreigners became much simpler than you think.

The process does not defer from the case of a Turkish citizen buying a property in Turkey, the entire procedure can be finished in a day.

first of all, the decision-making phase, where you choose the perfect, most suitable property that fits your choices and luxury among our wide collection of projects.

After the selection, you need to pay a reservation fee (1% of the property’s price) and the property will be reserved for you for 2 weeks.

After that period, the down payment should be paid (cash or bank transaction)

 

Closing Costs

When purchasing a property in Turkey, some taxes are obligated to be paid before obtaining the title deed, these taxes are the following:                      

%2 – %4 Purchasing tax: 4% of the sale’s price is paid as taxes when a sale occurs. However, this amount is divided into %2 for the buyer and %2 for the seller.
%1 – %18 VAT (Value Added Tax): this tax could be either %1 for properties (commercial and residential) that have a net area of less than 150 m2,  or it could be %18 for properties (commercial and residential) that has a net area over 150 m2
≈$1000 Utilities: Electricity, water, natural gas, … expenses to establish new connections to your apartment.

 

Rental Income Tax:

Rental income tax is a complicated process to calculate in Turkey, also it might need a professional guidance in order to reduce the taxes in a legal way. For further information please proceed to contact us to let one of our consultants advise you and lead you to the most beneficial method for renting a property.

 

DASK (Compulsory Earthquake Insurance):

In Turkey there is an obligatory insurance for properties, it is called Earthquake insurance. The amount will be paid annually is approximately $70-$80, the amount defers according to the area, structure of the building, location of the building, …

 

Annual Property Taxes

Cities in Turkey are divided into categories according to the population of each city, the bigger the city the higher the taxes will be, in the following are the rates of the taxes in big cities (Istanbul)

Residential Properties                  %0.2 – %0.1

Commercial Properties                 %0.4 – %0.2

Farms                                           %0.2 – %0.1

Land                                             %0.6 – %0.3

 

Residence Permit

Owning a property in Turkey and after obtaining the title deed of that property, you have the right to lodge an application for residence permit in Turkey, all foreigners can obtain a residence permit for one year (renewable before expiration date). The application is lodged through the official website of Directorate General of Migration Management.

For further information do not hesitate to contact us