IF I HAVE PROPERTY IN TURKEY WHAT I SHOULD PAY MORE? WHAT CAN I EXEMPT
There is a lot of foreign nationals buying a Property in Turkey. Almost in 7 regions of Turkey is investing for the real estate by foreign investors. The main reason is that Turkey’s developing and reaches a self-sufficient structure. Even though the fluctuation in foreign currency and economic activity are very high, markets will become more stable over time. Currently Turkey is trying to get rid of dependence on foreign sources came several years. Features striving to make a breakthrough in technological production. There is a fluctuation in the economy as other countries do not want to use their trumps. Such problems are normal and temporary. Turkey is not a country so poor that no country can afford to lose. In particular, recent military supplies from Russia and joint business plans show that both countries are aware of the need for each other in the region.
The number of foreigners in residential area of Turkey is increasing every year. I would like to summarize the news on the website of NTV on 23.07.2018. In this news they provide you with statistical information.
In Turkey, a record increase in tourism also positively reflected in the housing sector. In the first six months of 2017, the number of foreigners, who received approximately 9,595 housing units, increased by 18.8 percent in the same period of 2018 and reached 11,816. These figures are taken from the Turkey Statistical Institute data. Istanbul had the largest share in total sales of the province, which increased by 18.8% compared to a year ago.
In the first six months of 2017, foreigners bought 3482 houses in Istanbul and reached 3999 in 2018 with a 13% growth. Turkey’s largest and most beautiful city in the number of people who want to live in Istanbul increasing every day. Istanbul maintains its first place in housing sales to foreigners this year.
As you expect, Antalya comes in the second place of the provinces where foreigners buy the most housing. In the first six months of 2017 in Antalya, the purchase of foreign housing, which was 2091, reached 2883 in the same period of 2018. The average increase was 27.5%. This number increases every year.
Bursa is the third province where foreigners buy the most housing. Investors from the Gulf and Arab countries generally buy housing from Bursa. In the first six months of 2018, the number of houses increased from 702 in six months of 2017 to 812, an increase of 13.6%.
Yalova ranks fourth. While 432 houses were sold in Yalova in the first 6 months of 2017, this number increased to 558 in 2018 with an increase of 22.6%. Fifth Trabzon In the first six months of 2017, 424 houses were sold to foreigners and 540 houses were sold to foreigners in the first 6 months of 2018. 21.5% increase. The number of houses sold to foreigners in Ankara, which was 392 in 2017, increased by 9.3% to 432 in the first six months of 2018. Mersin ranks seventh in Mersin In 2017, 278 houses were sold to foreigners in the first six months of 2017, while this number increased by 16.6% to 333 houses.
Sakarya, which ranks eighth, is the only city in the top ten to experience a decline in housing sales to foreigners. In the first six months of 2017, the sales of housing to foreigners decreased from 337% to 330 in 2018. The number of dwellings in the ninth place Aydın 291 increased by 5.3% to 307. Housing sales to the foreigner, which is the tenth place in Muğla 905, increased by 31.8% to 1326. When we look at the ratio, we see that the highest increase is done by Muğla.
During these periods, the nation receiving the most housing was Iraq with 1987. These are Saudi Arabia 1087, Iran 944, Russia 815, Afghanistan 719, Kuwait 606, Germany542, Azerbaijan 414, United Kingdom 412, Jordan 373, Egypt 268, Yemen 263, Ukraine 259, Qatar 231, Sweden 226, Kazakhstan 188, Palestine 178 respectively. , The Netherlands 176, Norway 121, sold housing to citizens of the United Arab Emirates. In 2017, 22,234 houses were sold to foreigners.
There are so many foreign investors prefer Turkey. So what kind of invoices will they get after they get an apartment? First of all, I will present them to you in titles. Then I will explain each of them.
- Electricity Bill
- Water bill
- Property tax
- Income tax on house sales
In Turkey, the electricity bill comes each month and must be paid at the end of each month. If you do not pay you will be warned again. If you still have not paid, your apartment will be cut off. However, if you do not pay and turn on your electricity, the electricity company cancels your subscription and collects your debt from the money they hold as a deposit. In this case, you have to go back to the electricity office and have a subscription.
This is also an expense for you. This money comes to you on a raise with the cost of opening and closing. This is the easiest part of the job is Turkey to open an account and give instructions to debit your electricity bill. When the bill arrives, they are charged automatically from the bank and you will not be surprised when you come on holiday.
water bills, such as electricity bill comes in each month in Turkey. Payable at the end of each month. If you do not pay you will be warned again. If you still haven’t paid, your apartment’s water is cut off. This situation is different in every municipality. The same rules everywhere in Turkey, such as water and electricity subscriptions made by municipalities are not available. There may be differences in each region. For example, in Alanya, the water hours of debts below 70 pounds are not removed. But if the price rises above this figure, the transaction is made. Turkey is the easiest part of this job is to open an account and give instructions to debit your water bill. When the bill arrives, they are charged automatically from the bank and you will not be surprised when you come on holiday.
If you have a residence in the Republic of Turkey must pay the estate tax each year. You can forget it, or even if you don’t willingly pay, the state doesn’t forget it will get it from you in some way. For example, you wanted to sell your apartment. Deed asks you to bring a document from the municipality. If you owe it to the municipality, it will not give you this document without receiving it. You have to pay. Or you’re dead owed! The heirs must pay all your remaining debts in order to proceed.
If this debt is not paid for a long time in another matter that should be considered, municipalities will initiate execution by court order and collect it from you through execution. Below I will give you information about the law section and its calculations. In fact, if paid on time you will find that it does not hold much money.
Property Tax Law
Article 1 Turkey borders all buildings and structures located within the building is subject to tax under the provisions of this law.
Article 2 The term ‘building daki in this law covers all fixed structures, both on land and in water, regardless of which substance it is made of. In the implementation of this law, the concepts of buildings written in the Tax Procedure Law are also included in the definition of buildings in this law. Floating pools, floating structures, tents and caravans are not considered buildings.
Article 3 The building tax shall be paid by the owner, or by the heirs if his partners do not have a room. If the building is owned by more than one person, everyone owes the share.
Here I tried to summarize you only with short titles. Property tax is paid in two installments. The first six months and the second six months. 1. You must pay the term by the end of May and the second period by the end of November. Of course you can pay them together at the beginning of the year. You can make these tax payments to the cashiers of the municipality, to the payment points opened by the municipalities and to the contracted banks. You can also make payments from the internet.
Since I’m going to pay real estate tax every year, I’ll be asking more or less how I calculate it. There are some things you need to pay attention to. What is your property type before you calculate? An apartment? Shop? Take this into account. Remember to take into account that the value of your property in the municipality is updated every year. Another thing is whether the house you own is in the big city or outside.
If the big city is within the boundaries of the municipality, it is 2 per thousand in housing, 2 per thousand in land and 6 per thousand in land based on the values in the municipality. It is 1 per thousand in areas outside the boundaries of the big city municipality, 1 per thousand in lands and 3 per thousand in lands.
Income tax on property sales
Here, I will give you information about the full fulfillment of the tax obligations in the sale of real estate. Thus, we want to ensure that you complete the transactions and avoid problems. For this purpose, we especially want to emphasize that the realization of the tax liability and the increase in value gains in real estate sales is fulfilled.
Increase in value obtained from the sale of housing; The two priorities taken into consideration in taxing the income obtained from the sale of housing are whether the house was sold for the date of purchase and for money.
If a house is sold within five years from the date of purchase and a gain is obtained, a tax must be paid at that rate. If it is sold 5 years after the date of receipt, no tax is payable. In addition, no tax shall be paid from the profits obtained from the sale of places purchased free of charge.
Buy / sell continuously; the gain of those who buy and sell real estate is not considered as an increase in value, but as a commercial gain. Sales made in a commercial organization will be considered as letting even if a single sale has been made. If more than one sale has been made without a commercial purpose, it should be determined for what purpose. In this case, the sales made for commercial purposes should be calculated within the scope of commercial gain, sales made for the purpose of protecting the personal needs or assets within the scope of the gain of value increase. furthermore, if these gains are obtained by a business enterprise, this is taxed as commercial gain.
Declaration of income tax
Whether or not the income tax is paid depends on whether the income obtained exceeds the minimum value. This is the difference between the price when buying the apartment and the price when selling the apartment. The taxes in the residence are paid according to this calculation.
In short, the difference between the price you specify when buying and the price you specify when selling is the amount you will calculate the tax you have to pay