When purchasing a property in Turkey, please be advised of the procedures that need to be followed:
Deciding on the property one wishes to buy;
Preparing the title deed (TAPU) of the property;
Obtaining tax number from State Tax Office;
Opening a bank account;
Applying to the Land Registry Office;
Registering the title deed (TAPU) into the buyer’s name(s)
The title deed (TAPU) is the only document that certifies the ownership of a property and is prepared by the Land Registry Office in each town/municipality. TAPU is registered in all the official books and state computer system. In case the TAPU is lost, it can be renewed at the Land Registry Offices at a cost of €10 EUR.
Unlike any other country, when a purchaser buys an apartment in Turkey, they also own a part of land according to the size of the apartment.
TAXES PAYABLE AT THE TIME OF TAPU TRANSACTION
A number of construction companies include sales tax in their sales price. However, according to the regulations in Turkey, both buyer and seller each pay 4% of the sales price as tax.
ANNUAL PROPERTY TAX
Every year a property tax must be paid to the local authorities. The volume of the tax is calculated according to the price registered on the title deed (tapu). However, local authorities have the right to change the value of the property based on any new regulations passed by the government which means such value changes may vary in accordance with the inflation rates in Turkey.
The property tax rates are as follows:
Apartment - 0.2% of the value
Shop and Office - 0.4% of the value
Lands - 0.2% - 0.6% of the value (depending on the location)
Due to the new regulation as of 29th June 2001, all the buildings must be approved by the Building Inspection Firms appointed by the state. In order to obtain building permissions, all the construction companies must have a mechanical engineer, an electric engineer, and architect and a civil engineer. A Building Inspection Firm checks if the building’s foundation and beams are strong enough and the construction has been completed with accordance to all building regulations which are approved by a number of tests. A building will get a legal permission (iskan) only if approved by the Building Inspection Firm.
CAPITAL GAINS TAX:
In Turkey if a property is sold within 5 years of ownership, the vendor does not have to pay any tax on their capital gain. In case the property is sold after 5 years of ownership, the vendor is obliged to pay tax on the capital gain starting from 9,400 TL.
The percentages of the tax on the sold after 5 years property are calculated as follows:
0,000 TL - 10,000 TL - 15%
10,001 TL - 25,000 TL - 20%
25,001 TL - 58,000 TL - 27%
58,001 TL - above - 35%
In case of death of the owner, all the rights of the property go to the legal heir. For this purpose application is made to the Land Registry Office together with the death certificate, where a new certificate will be approved by a notary or court.