If you decide to buy real estate in Turkey or reside and settle in that country, there are many details that you should know and see, including the types of taxes, this is a topic that concerns many investors and people, and this is what prompted us at Zoom Real Estate to put it in this article and discuss some of its aspects and details, we wish you an enjoyable reading.
What do you know about the types of taxes in Turkey?
If you have any questions or inquiries about taxes in Turkey, follow the following paragraphs in detail:
1 - Income tax in Turkey:
The tax system in Turkey is based on the principle of self-assessment. The tax administration is responsible for ensuring that the correct amount of tax is paid by each taxpayer, but it is the taxpayer who ultimately decides the correct tax obligation. The Turkish tax system can generally be divided into two types of taxes: direct taxes Indirect and direct taxes are levied on income and profits.
The main direct taxes in Turkey are corporate income tax, personal income tax, capital gains tax and indirect taxes are levied on consumption, such as value-added tax (VAT) and excise tax and Turkey has a progressive corporate income tax rate, which ranges from 20% to 30%. The personal income tax rate is also progressive, ranging from 15% to 35%.
2 - Value Added Tax:
Value Added Tax (VAT) in Turkey is 18 percent and VAT is levied on the import, sale and rental of goods and services and VAT is also levied on the provision of certain services related to real estate.
3 - Real estate property taxes:
Turkey has a real property tax, which is imposed on the registered value of all buildings and lands in the country and the tax is paid by the property owner. The amount varies depending on the location and type of property. The tax is calculated as a percentage of the registered value of the property and paid annually.
The rate ranges from 0.1% to 0.6%, depending on the municipality in which the property is located and there are some exemptions from property tax, such as properties used for agricultural or forestry purposes, or properties owned by some charitable organizations.
4 - Car Ownership Taxes:
Car ownership tax in Turkey is a bit complicated. The main taxes are purchase tax, luxury tax and annual vehicle tax.
Purchase tax is a one-time tax levied on the purchase price of a car, luxury tax is an annual tax that depends on the size of the car's engine, and annual car tax is an annual tax that depends on the value of the car.
5 - Special consumption taxes:
The Turkish government has imposed a Special Consumption Tax (SCT) on certain goods and services that are considered harmful to human health or the environment.
Where are taxes paid in Turkey?
Taxes in Turkey are paid to the central government and local municipalities. Central government taxes include income tax, social security contributions, value-added tax (VAT), and customs duties. Real estate taxes are also collected by local municipalities.
Tax Incentives in Turkey:
The Turkish government offers many tax incentives to encourage foreign investment in the country. These incentives are available to both domestic and foreign investors, and are usually offered in the form of reduced corporate income tax rates, exemptions from certain taxes, and accelerated depreciation allowances and to be eligible for these incentives. Usually, investors must meet certain criteria such as investing a minimum amount of money, creating a certain number of jobs, or locating their business in a particular development area.
The most important types of real estate taxes in Turkey:
Since the largest trend by foreigners towards the real estate sector in Turkey, we should note in particular some details and taxes related to the Turkish real estate sector, the most important of which are:
1 - Title Deed Tax in Turkey is a tax levied on the sale of real estate and the tax rate varies depending on the type of property being sold, but generally ranges between 2-4% of the sale price.
2 - Income from the sale of apartments in an apartment complex is subject to tax in Turkey and the tax rate is 3%, and the tax is levied on the total value of the sale. Tax is payable by the seller and must be paid within 30 days of the sale.
3 - The annual real estate tax in Turkey is 0.3% of the cadastral value of the property.
4 - The cost of obtaining a real estate valuation document in Turkey may vary depending on the appraiser, property type, location and other factors, however, on average, the cost ranges between $150 and $350.
5 - In order to be able to purchase an earthquake insurance policy in Turkey, the buyer must first obtain an insurance certificate from the Turkish Catastrophe Insurance Pool (TCIP). The cost of this certificate is 1% of the security deposit, with a minimum of 30,000 TL (about 17,500 USD) and a maximum of 60,000 TL (about 35,000 USD).
6- In general, the real estate agent's commission when buying a property in Turkey is about 3% of the purchase price plus VAT.
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-Extensive knowledge and close relationships within the Istanbul real estate market.
–Cheap apartments for sale in Istanbul that satisfy all tastes.
–Buying an apartment in Istanbul in convenient installments.
-Choose an apartment suitable for obtaining Turkish citizenship and enjoying its advantages.
– Taking care of all the necessary procedures and papers for you.
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