In Turkey according to the current tax regulations, foreign nationals and Turkish citizens are no different in terms of taxes or levies to be charged.
The description of the Turkish direct taxation system, which consists of two main taxes: income tax and corporate tax, are provided in the Income Tax Law 1960 (ITL) and the Corporation Tax Law 1949 (CTL).
For those individuals — the term “individuals” mean natural persons — involved in the Turkish real estate industry, the following taxes and insurances are required: Inheritance and succession tax, VAT (if a commercial delivery takes place), real estate tax, personal income tax (based on rental income and capital gains), earthquake insurance, real estate acquisition and purchase levy (at the time of purchase or sale).
Stamp Duty, environmental tax, corporate tax (in case of a commercial transaction of a company).
The Tax Liabilities Concerning Real Estate
Real Estate Tax
Real estate Tax is accrued in accordance with the official sale value of the property. Annual taxes are paid in two equal installments. Sale & Acquisition Levy
Each buyer and seller is to pay sale & acquisition levy. It is collected prior to the transfer of ownership at Land Registry Office.
Taxpayer is the person who acquires property in inheritance or gratis.
Corporate Income Tax
Sale of real estate owned by Corporate Entities (tax payer)
Income Tax (Individual)
Fixed Tax Amount
Value Added Tax
For a general overview of taxation in Turkey please click here.
The content of this article is intended to provide a general guide to the subject matter. Legal advice should be sought based on specific cases or circumstances.