Turkey is one of the best countries to have a property. The country consists of many historical monuments and architecture examples. It's culture, especially in rural areas, is still alive and astonishing. With that being said, its culture and history aside, properties for sale in Turkey has many economical advantages for buyers.
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Titles
Checking for The Previous Taxation Payments
First thing you must do when buying a property from any country is to check for the previous payments. In some countries, previous payments that are not paid can be transferred to you. Since Turkey is one of those countries you must check the previous payments.
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Real Estate Taxes In Turkey
Property tax in Turkey is quite low when it is compared with the other European countries. This is one of the reasons for investing in real estate in Turkey. The first thing to know about property taxation in Turkey is that both residents and non-residents of Turkey are paying the same percentage in terms of real estate taxation.
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Purchase Value and Declared Amount
Another important thing you must be informed about property tax in Turkey is the difference between purchase value and declared amount. Purchase value is the amount of money you paid for the property. Declared amount, on the other hand, is the declared value of the property. Turkish Estate Agents most of the time under-value the property to lesser the taxations that will be paid by the buyer.
Does Declared Amount Lower than Actual Price Cause Problems?
The Turkish government is well aware of this situation, Yet as long as the declared amount is not less then %60-%70 of the purchase value, it does not cause any problem both fort the seller and the buyer. If the declared amount is below %40 of the purchase value you may console a lawyer and be sure of the problems that may occur.
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Stamp Duty
When choosing a property for sale in Turkey, First thing to handle is to stamp duty taxation. Stamp duty taxation is taxation for the change of the ownership of a property. This taxation is valued between %4-%5 of the declared amount of the property.
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Annual Property Tax
Annual property tax in Turkey is similar to council taxes which are paid in the UK and US. But the amounts of the taxes are fairly lower than those taxes. Annual property taxes are based upon notional value rather than the declared amount. The municipality which your property is connected determines the notional values, Yet this shouldn’t make you concerned since the municipalities are more than fair about notional value determination. the annual property taxes are lower than %1 of the declared amount of a property
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Income From Real Estate.
In terms of property tax in Turkey, If the buyer is planning to gain income from the property they must know that there is taxation for income from real estate. If the real estate is sold (a capital gain) taxation is determined by the difference between the declared amounts of buying and selling of the property and can go up to %35 of the declared amount. If the buyer decides to rent the property(tax on rental income) the taxation can be between %15-35% according to the income’s value. These percentages are only to inform the highest possible values. In Turkey, an average capital gain taxation and rental income taxation are around %15-%20.
