Tax And Costs To Buy Real Estate In Turkey
In general terms, allow about 4% to 10% extra to cover your tax liabilities and miscellaneous costs to buy any property in Turkey. This will cover a one-time stamp duty tax of 4% of the property price (paid once whether a car, boat, house or land) that has to be paid to the Turkish government bank via the land registry office; 1% charge for obtaining copies of the 'Tapu'; and for connections to local utilities, and 2% fee for lawyer and legal services.
You can also expect to pay your Turkish estate agent a commission of 3% of the property sale for the finders fee.
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Additional Yearly Turkish Real Estate Tax
Once you own the property, whether you are a foreigner citizen or Turkish citizen there is a yearly property tax 'emlak vergi' that must be paid to the local municipality, that equals to 0.003% of the property value 'rayic' on the tapu copy. For example you own a real estate value worth 'rayic' for 100.000 Euro, you would pay only 300 Euro emlak vergisi. Any sanitary tax is paid within the water bill.
Capital Gains Tax On Real Estate Sold In Turkey
Capital gains tax, or 'gelir vergi' must be paid when the property is sold, if you sell within the first 5 years of purchase. It is calculated as 35% of the difference between the present value of the property and it's value when last sold. Turkish law does not specify who is liable for this tax so it's very important to include this in your negotiations and to have the agreement documented by a lawyer.
If any property is sold after 5 years after purchased by law you are tax free, no questions asked. So for example should one buy a real estate for 100.000 Euro and sell it for 200.000 Euro after 5 years, there is no tax applicable to the gains.