The tax conditions for Turkish citizens and foreigners are almost identical. Most of the mandatory taxes are the same, because of the low rates they do not burden the owner. In addition, an additional incentive for buying Turkish housing is obtaining citizenship for an investment of USD 250,000.
The official website of Turk.Estate will tell you more about taxes for foreign owners of Turkish real estate.
Rights and obligations of non-residents
In 2012, the purchase of Turkish apartments and houses became available to citizens of 129 countries. At the same time, the rights for foreign buyers to own real estate are exactly the same as for Turks. However, it is worth considering some nuances.
- Foreigners are not allowed to buy plots of more than 30 hectares;
- The purchase of properties in the border territories is also prohibited;
- You can apply for citizenship for the purchase of real estate from USD 250,000;
- You need to pay an annual property tax.
What are the taxes on real estate
The first tax that will have to be paid when buying Turkish housing is a tax on registration of property rights in the amount of 4% of the price of the property. By law, the tax should be equally divided between the seller and the buyer, but in practice it is the buyer who pays.
You will also need to pay additional Döner Sermaye – working net in the amount of USD 133, transferred to the account of the registering organization. For Turks, the amount is lower.
What taxes do owners pay
Housing taxes for non-residents are similar to taxes for Turkish citizens. Below is a list of the main taxes that owners must pay.
Emlak Vergisi is a real estate tax. Its size depends on the features of the propety (type, size, location).
Residential real estate:
* In the province – 0.1%;
• In large cities – 0.2%.
Commercial real estate:
* In the province – 0.2%;
• In large cities – 0.4%.
Land plots without a construction permit:
* In the province – 0.1%;
• In large cities – 0.2%.
Land plots with a construction permit:
* In the province – 0.3%;
• In large cities – 0.6%.
The tax is calculated based on the cadastral price of the property.
What other taxes exist
The luxury real estate tax was introduced in 2019. This tax affects expensive properties worth from USD 620,270. The assessment of the property is carried out by the Main Land Cadastre Department.
The cost of properties and tax rates are the following:
* From USD 620,270 to USD 929,810 – 0.3%;
* From USD 929,810 to USD 1,240,533 – 0.6%;
* From USD 1,240,533 and more – 2,660 is fixed.
To buy property in Turkey
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