Property Tax In Turkey

VAT applied to the purchase of a property in Turkey.

Income from renting a property in Turkey is subject to taxation in this country. And those who buy a property, whether they are foreigners or not, must consider paying the required taxes.

The legislation on taxes imposed in Turkey can be explained in detail by one of our Turkish lawyers. Our specialists can also provide the necessary legal advice for those who want to invest in Turkey and open various businesses.

What are the annual property taxes in Turkey?

The property tax in Turkey varies between 0.1% and 0.6% rate, depending on the type of property, but also on the city where it is located. Thus, a tax of 0.2% rate is imposed for ordinary properties such as apartments or buildings near large cities. Regarding the properties owned in big municipalities, the property tax rate is set at 0.4% per year. Residences in large cities are subject to a property tax in Turkey of 0.2% rate per year, while those in the surrounding area are taxed at a rate of 0.1%.

Commercial properties in Turkey are taxed at 0.4% rate, while a 0.6% tax rate is applied to land.

We remind you that these rates are calculated according to the price of the property.

VAT applied to the purchase of a property in Turkey.

The acquisition of properties in Turkey cannot be done without paying the VAT, with few exceptions. Thus, an 18% VAT is imposed on commercial properties, but this tax varies when we talk about residential properties. Here are two examples in this case:

VAT for apartments with an area of more than 150 sq. M is 18% rate. VAT for apartments with an area of less than 150 sq. M is 1% rate.

It is important to note that rented properties are exempt from VAT in Turkey. Individuals who sell their properties have the same benefit, but the situation changes in the case of real estate agencies if the sale and purchase are made with their help. Here, the VAT is set at 1% rate.

GreenMavi worldwide investment propery consultancy team offer the necessary investment consultacy support to those who want to open a business in the real estate sector in Turkey.

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