If you are thinking of buying a property in Turkey or you are dreaming of owning an apartment in the beautiful Turkish cities, learn about the most important types of real estate taxes in Turkey and how to calculate and pay them.

Real estate taxes in Turkey

If you are thinking of buying a property in Turkey or you dream of owning an apartment in Istanbul in one of its beautiful areas or with a view of its famous strait, you must know some details related to the laws of buying real estate in Turkey

And for this, let’s learn about the most important types of real estate taxes in Turkey and how to calculate and pay them.

First of all, real estate owners or those wishing to buy a property in Turkey, must have a bank account with a Turkish bank, in order to facilitate the payment of all taxes, and monthly payments, incurred on the property, and to prove the payment of these payments officially.

Also, these taxes can be paid through government applications, which are allocated by the Turkish state, to facilitate payment procedures.

What are the types of real estate taxes in Turkey?

Value added tax on real estate

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This type of tax varies according to the type of property in Turkey in addition to the region in which it is located, whether it is in the countryside, small cities, or large cities

It is calculated according to the average price per square meter of the property in this area. In addition to the area of ​​​​the property, and the level of construction.

As for the value of the value-added tax on real estate in Turkey, it ranges from 1% to about 18% in some high-end and commercial neighborhoods in major cities such as Istanbul, the economic capital of the country.

It is collected on homes that are sold for the first time, and is included in the price of the property, and this tax is paid by the company that builds the property for one time.

property registration tax

The new property owner must register his property after completing the purchase process in the Land Registry Department, in order to officially confirm his ownership of this property and this requires paying a specified amount, for one time, which is known as the property registration tax, which amounts to 3% of the property value. It is also paid in the event of transfer of ownership of the property, to the legal heirs.

property transfer tax or title deed tax

The property owner may sometimes have to transfer the ownership of his property to other people, due to sale or otherwise, which requires him to pay a tax upon transfer of ownership, and this tax is equivalent to 4% of the declared value, which is predetermined for the property. It is entrusted to both the seller and the buyer equally, except that it is customary to bear the buyer alone, unless the contract provides otherwise.

Earthquake insurance in Turkeyreal estate istanbul

It is a tax that is paid annually, as the property owner undertakes earthquake insurance. There are two types of insurance, mandatory and non-compulsory, according to the type of property available in the residential or commercial building.

In addition to the type of insurance coverage required.

Real estate profit tax or income tax

This tax is imposed when reselling any property in Turkey, and is paid if the sale is made, within the first 5 years from the date of purchasing the property.

The profit is calculated according to the difference between the value specified in the title deed in which it was purchased, and its sale price.

That is, the percentage of this tax depends on the selling price, and the assessment of this is due to the Government Land Registry Department.