Conditions for benefiting from tax exemption on real estate in Turkey

Created: 2022-05-01
Last Updated: 2024-04-26
Views: 1033

Content Index

Who gets tax exemption in Turkey?
Documents required to obtain tax exemption:
Value added tax on real estate in Turkey:
Other types of taxes in Turkey:

You can be one of the beneficiaries of the exemption to pay the value added tax in Turkey. This is one of the main advantages that attracted foreigners from different countries of the world. Turkey has surpassed many European countries in this aspect, which imposes harsh conditions that are not suitable for them.

Learn with us, through this article, the conditions that must be met to obtain an exemption from this tax, as well as we will refer to some types of taxes that real estate owners in Turkey must pay.

Who gets tax exemption in Turkey?

There are many cases in which you can obtain an exemption from paying the value added tax in Turkey, and through the following paragraph we review them in full.

The first case: all persons or foreigners who do not reside in Turkey or companies whose headquarters are outside Turkey, get the exemption very easily.

The second case: It can be obtained when the foreigner during the past year did not reside in Turkey for more than six months.

The third case: He must not have a residence permit in Turkey from the previous year.

Fourth case: He should not have an address in Turkey, and if he has one, he can cancel it.

The fifth case: You should know that the tax exemption is on new real estate only, while the old real estate is not covered by the exemption.

The sixth case: Also, the tax exemption is on real estate designated for housing only, while the real estate that is commercial is not covered by the exemption.

Seventh case: You must have paid the price of the property in foreign currency and have it transferred from outside Turkey to a Turkish bank.

The eighth case: Whoever obtains an exemption from paying the value added tax will not be able to sell the property again before the expiry of a full year.

The ninth case: A foreigner can also obtain it when this is the first time he buys real estate in Turkey.

Documents required to obtain tax exemption:

Check out the papers and documents that you must bring in order to obtain the exemption document.

- A copy of the buyer's passport.

- A document confirming that whoever wishes to obtain the exemption resides outside Turkey.

- Extracting the tax number from one of the tax departments in Turkey.

- The person concerned may not be able to come to Turkey personally by sending someone on his behalf under an official power of attorney.

Value added tax on real estate in Turkey:

Its value ranges from 1% to 18% and varies according to the different properties, i.e. the location - the area - the view - the city in which it is located - the number of rooms and other specifications.

1 - When the area of the property is less than 150 square meters, the value of the tax is 1%.

2 - If the real estate area is 150 square meters, the value added tax is 8%.

3 - When the real estate area exceeds 150 square meters, the value of the tax is 18%.

The third percentage is only for large, luxury and commercial properties.

Other types of taxes in Turkey:

Find out about some of the most important types of other taxes that you will incur when buying a property in Turkey.

1 - Fees for obtaining a title deed:

Also called ownership transfer fees or obtaining a title deed, the value of which is 4% of the total property value.

2 - Annual real estate tax:

Among the taxes that you must pay when owning real estate in Turkey is the annual tax, which is about 0.002% of the value of the property, and it is paid in two stages, the first in March and the second in October.

3 - Real estate profit tax:

As for this tax, you will not have to pay it except in one case, which is if you sold the property before five years have passed since the date of its purchase.

4 - Property tax in Turkey:

This tax is about 3.9% of the total value of the property and is paid upon transfer of ownership and taking the last steps.

5 - Legalization and translation fees:

There are also fees and costs for translating papers and documents into Turkish and attesting them with a notary, such as a passport and others. (The notary’s fee is about fifty dollars at most.)

6 - Earthquake insurance fees:

After the earthquake that struck Turkey in 1999, the Turkish government decided that an insurance policy must be issued for everyone who buys a property in Turkey. This is one of the taxes paid annually to an insurance company, amounting to $2 per square meter.

7 - Residential complex taxes:

If you choose to live within one of the residential complexes that are located in Turkey, this means that there are additional costs that you will have to pay, which amount to an average of about fifty US dollars, which is for the services that are provided such as: (cleaning services - maintenance - recreational facilities - security guards throughout the night and daylight).

This cost varies from one complex to another. It comes down to the type of services that are provided - the location of the complex - the view it supervises.

8 - Real estate appraisal report:

One of the essentials that cannot be canceled when buying a property in Turkey is to extract this report that accurately determines the value of the property and protects the buyer from being a victim of fraud (its value is about two hundred dollars maximum).

Now you can benefit from tax exemption when buying an apartment in Turkey, and this helps the investor to obtain high profits and also save money. If you have any questions about this field, you can contact us to provide you with the help and answers you need.

At Ramzy Real Estate Company, we are glad to accompany you on the journey of buying property in Turkey and to provide you with a range of services to make the process smooth and easy , as we are always keen to present a variety of options for residential and investment properties in addition to helping you obtain Turkish citizenship for those looking for it.
Our services:
- Legal advice .
- Property Management.
- After-sales services .
- Legal services and obtaining Turkish citizenship.
- Buying and selling real estate in Turkey.
- For more details, you can contact us via the communication platforms or via the WhatsApp attached on the site.

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