Taxes and other charges when buying a property for investment in Turkey
When we talk about investing in real estate in Turkey, the first question that comes to mind is the operating expenses and costs that the investor must be aware of, so that he can enter this market, without being cheated or deceived by real estate companies or brokers scattered in the Turkish Republic …
In this article, we have collected for you the most important real estate taxes and fees that the government imposes on the investor when buying the property, from the costs of the value-added tax (VAT), the registration tax for the title deed known as “Tabu”, and there are one-time fees for the purchase of the property, and fees paid annually, In addition to a monthly fee paid according to consumption.
We start with the basic real estate charges in the Turkish Republic and the tax departments therein represented in each of the value-added tax VAT, which is paid directly to the Turkish Republic and is calculated from the net area of the property at the total market value at the time of receiving the property. meanwhile from which three real estate types are represented in each of the commercial properties at a rated value At 18% and residential real estate according to the area of the unit, in case it exceeds 150 sq.m, the tax value reaches 18%, but if the area is less than 150 sq.m then the value of the added tax varies from 1% to 18%. Also, taking into consideration the real estate area and the price per square meter in addition to the level of construction, all of this impacts the value of the tax paid from the property itself.
Abort the title deed the TABU tax is paid For the Real Estate Documentation Office, which is removed at the time of writing the title deed of the new owner of the property and is calculated from the actual value of the property
When the foreigner investors are investing in the real estate sector, there is a one-time financial fee during obtaining the investment, the most important of which is the approval of the investor’s passport and its translation into the Turkish language at a rated cost of 100 USD, and the fees will be paid when transferring the title deed to the new property to the name of the new owner and is equivalent to 90 USD, also you need while obtaining The investment to have a sworn translator who legally registered with the Translators Syndicate in Turkey and its fees are approximately 100 USD, while the fees for transferring real estate property that is paid to the Land Department and the real estate registry in the Maps Office are around 200 USD, and in case the water meter registration is opened in the name of the new property, it pays $ 200 if the registration is new, but if the water meter from the name of the property owner is transferred to the new buyer, he pays $ 60, also while registering a new electricity meter for the investor pays approximately $ 150, but in the case of transfer from the seller The buyer pays only $ 40.
And when we’re talking on the fees that are paid annually for the ownership property, it will be divided on the property ownership tax that is paid directly to the municipality, and its value varies between 1% to 6% of the declared value of the property. In residential real estate, the added tax will be 1% of the total value of the property, and also there are annual fees mandatory for earthquake insurance and paid to an insurance company, which is a fixed national tax that does not exceed 0.1% of the total value of the property.
and for the monthly fees is required on the property in Turkey, it is based on the services provided by the residential complexes, such as playground, swimming pool, parks, and other public services, which fees are divided among the owners of the real estate participating in the complex itself, these fees are collected and delivered to the company supervising the services of the complex to keep the cleanliness, renewal, and the maintenance of the complex or an adjustment to one of its public services, these fees differ from one complex to another according to the quality and the mechanism of the complex is based, ranging from 1.0 – 1.5 $ per square meter.
When purchasing the investment property, some details must be pointed out and to be declared for the investor to guarantee all his rights when buying any different type of property, which is the real estate evaluation’ report that includes the property details, organize and carry out all real estate transactions within the Land Registry Department so that you keep yourself that you’re going through the legal issue of the Turkish state, making sure the real property owner, and this is exclusively by confirming the governmental employee in the Land Registry Department on the name of the landlord, making sure that no mortgage or attachment blocks the sale of the property, checking the title deed of ownership of the Land Registry if a temporary contract for a building is under construction and it can be transferred to permanent or there are some Problems and complexity The property that could face the property in the future.
plus all the information mentioned above, it is necessary to consult reliable real estate companies who have previous experience in completing such procedures to make the best use of the offers submitted by the Turkish government, and protection from any fraud or cheating.