Fees and taxes

Fees and taxes

Taxation and real estate fees in Turkey are divided into the following:

1– Value Added Tax (VAT):

This tax shall be paid to the government, and is calculated from the market value during the receipt of the property, but shall be calculated from the net area not the total area.
It is divided into three sections:

  • VAT on commercial property (18%).
  • VAT on residential property, if the net area of the housing unit is more than 150 M2: VAT (18%).
  • VAT on residential property, if the net area of the housing unit is less than 150 M2: VAT ranges between 01% and 18%.

This tax varies according to the area of the property, the level of construction and the price per square meter of the land on which the property is built.

2– Tax of title deed registry ((Tapu)) :

The 4% tax is paid to the real estate documentation office, and it is calculated from the actual value of the real estate while writing the title deed with the name of the new owner.

3– One-Time fees:

  • Fees of translating the buyer’s passport to Turkish and attesting it.
  • Fees of obtaining the title deed (Tapu) with the name of the new owner.
  • Fees of certified translator (registered in the Translators Syndicate in Turkey).
  • Fees of submitting a title deed transfer request (paid for the Map Office at the Department of Land Registry).
  • Fees of water meter registry in the name of the new owner.
  • Fees of electricity meter registry the name of the new owner.

4– Annual fees:

  • Property ownership tax:

    This tax is paid for the municipality, and its value varies between 1% to 6% of the declared value (the tax authority announces the least value for these taxes.

    • Residential real estate : 1% VAT added to the real estate value.
    • Other real estate : it varies from a real estate to another within a reasonable range. The municipality will inform the buyer about it before the end of December of every year.
  • Earthquake insurance:

    Earthquake insurance is compulsory for real estate owners, where a fixed tax rate is imposed for this type of insurance. Typically, it does not exceed 0.1% of the property value, and it is paid to an insurance company.

5 – Monthly services fees:

These fees are paid for the privileged services in the housing units, like sports fields, gardens, swimming pools, workers and other services which all property owners share. This sort of fees is monthly and fixed, and is paid to the company that offers the services to clean and maintain them so you always find them at their best.
These fees vary from one project to another, ranging from $1.0 to $1.5 per square meter at a maximum.

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