Turkey, well known for its beautiful landscapes, is a country with important perspectives for foreign investors, but also for individuals. If you are interested in the commercial or real estate property market in Turkey, our Turkish lawyers can offer you information about legal and financial practices applied when a property is sold.
Property Market in Turkey
Foreign investors are allowed to purchase a property in Turkey, and only few nationalities are not eligible. Until 2012, property market worked under the Reciprocity Principle Law, which stated that a person of a certain nationality could own a property in Turkey only if his or her country of origin offered the same right the Turkish citizens. At the moment, 183 nationalities can benefit of the right of buying/selling a property in Turkey. Our attorneys in Turkey can give further information about this particular law.
Property Sale Taxes in Turkey
Turkish legislation requires a seller to pay several taxes at the moment when the property changes ownership.
•Stamp Duty – a tax paid when the ownership of the property is changed. Usually, both the seller and the buyer must pay the tax, each at the rate of 2.2% of the transaction value, but it is a common practice that the payment liability, at the rate of 4.4%, to be sustained only by the buyer. Our law firm in Turkey can explain you the legal background on which this practice functions.
•Capital Gains Tax – the tax is paid by the seller at the moment when he or she decides to sell a property. The tax is applied to the difference between the price of the purchase and the sale value of the property. If the profit on the sale is less than 6.000 TRY (Turkish lira), no capital gains tax will be retained. For profits between 6.000 TRY and 40.000 TRY, the capital gain tax varies from 15% to 35%. You can find out more details from our lawyers in Turkey on how the capital gains tax is applied at the sale of the property.
•value added tax – applicable only at the sale of a property with a surface of over 150 square meters, at the rate of 1%.
•property transfer tax – paid at Land Registry, when the transaction is completed.
•circulating capital fee – determined locally.
Our lawyers invite you to watch a video about the process of selling property in Turkey:
Interested in residency in Turkey? You can opt for the legal services offered by our Turkish lawyers. Such a permit can be issued for those who want to relocate to this country and reunite with their family. Also, those who want to do training in different fields or benefit from medical treatments can apply for a residence permit. It is important to consider the formalities and documents involved. Thus, in addition to a valid passport, you will also need to present a clear criminal record. Contact us for the evaluation of your case.
Cagatay Altunsoy is the the co-founder and coordinator of CS Yonetim ve Destek Hizmetleri and he is an experienced specialist in company formation and business consulting services provided for foreign investors all over the world.