Tax exemption is one of the things that should be paid attention to when buying a property in Turkey. With the different areas and types of real estates, you find yourself obliged to pay the value of the real estate tax, but what is the value of this tax and how is it exempted?
The value of the real estate tax "added value "
When selling the property for the first time after its construction, the first person who will buy it will have to pay a real estate tax collected by the Turkish government, and the owners of construction or real estate developer companies include this value in the price of the property while selling it to you and then pay it to the tax department after collecting it from you, or the do not include it in the price and they inform you that the given price does not include the property tax and you pay it on your own.
In this regard, the views of the construction companies selling real estate differ, some of them believe that this value should not be included in the sale price so that the price appears lower from a marketing point of view, as well as some of them include it in the price so that the buyer of the property is not surprised by large expenses that have to be paid after purchasing the property.
In any case, the property purchase tax will be paid to the Turkish government in the end, and no party will benefit from it.
How much is the property purchase tax in Turkey?
In Turkey, the value of the property purchase tax for the first time in Turkey or VAT is one of the following values
1% or 18%, which is usually according to the real estate's area and is determined according to several conditions.
For newly established real estate, the value of the tax will be:
The value of the added tax is 1% if the property is an apartment with a net area of less than 150 square meters.
The value added tax is 18% if the property is an apartment with a net area of more than 150 square meters.
If the property is commercial, the value of the added tax will be 18%, regardless of the area.
Real estate tax exemption terms
In order to be able to obtain an exemption from paying the tax for the property you buy in Turkey, there are a set of conditions that must be met, and the origin of setting these conditions is to benefit everyone who comes to Turkey to invest for the first time, that is, to encourage real estate investments and purchasing real estates in Turkey.
Conditions for exemption from buying a property tax in Turkey are:
1- The property buyer should be a foreigner and does not have a valid residence permit in Turkey.
2- The property buyer has not previously purchased a property in Turkey.
3- The nationality of the real estate purchaser should not be one of the nationalities not allowed for tax exemption.
4- The purchased property shall not be a land, but only an apartment or an office and shall be sold for the first time after its establishment.
5- The value of the property must be paid in foreign currency.
6- The property must not be sold for a period of one year from the date of its purchase if the real estate exemption is applied to it.
Exemption from real estate tax, Turkish citizenship and a golden advice
If you want to obtain Turkish citizenship through a real estate investment with a value equal to or more than $250,000, then there is no objection to you benefiting from the exemption from real estate tax, but ... pay attention
The real price of the property that is registered in the Tapu Department, i.e. in your document of ownership of the property, and the price at which the real estate evaluation will be issued is the price of the property without the value of the real estate tax, and this may mean big problems if you do not understand its meaning and we will explain it through an example.
Someone sold you a new property and told you that its price with tax is $250,000, for example, and the tax value was 18%, and you bought and paid, and then you later found out that the price of the property registered in the Tapu is $205,000, and that you can get a tax exemption, but you cannot obtain Turkish citizenship.
For this matter, always try to know the value of the applicable tax, no matter how large or small, and know the value of the property without tax, which will be recorded on your Tapu document, and then obtaining tax exemption will be easy.
If you want tax exemption, do not rush to apply for residence in Turkey, but first obtain your tax exemption and then apply for residence.
Who can help me with real estate tax exemption in Turkey
You can use your lawyer if you have a lawyer in Turkey, and you can use Glovision Real Estate in Turkey to get your wish in facilitating all your real estate affairs, as our company will find the best real estate options for you, and provide you with an unparalleled real estate services, and this will be all your affairs are safe.
