- Property tax rates:
– The annual property tax is 0.1% of the cadastral value of the property.
– In major cities, provincial centers, and tourist areas, there is an additional coefficient that increases the rate to 0.2%.
– On average, the annual property tax does not exceed $150.
– Commercial properties and development plots have higher tax rates.
- Commercial real estate and land tax:
– The tax rate for commercial real estate is 0.4% of the cadastral value.
– The tax rate for agricultural plots is 0.2%.
– Land plots granted permission for the construction of commercial properties are taxed at a rate of 0.6%.
- Luxury property taxes:
– Increased tax rates ranging from 0.3% to 0.6% (depending on the cadastral value) apply to properties worth over $285,500.
- Rental income tax:
– Individuals are allowed to lease their properties for long-term rental.
– The minimum tax-exempt amount for apartment rentals is $512, while for commercial properties it is around $2,700.
– Short-term rentals during the tourist season are only available for legal entities with a license. It is recommended that the property has apart-hotel status.
- Progressive tax scale:
– Turkey uses a progressive tax scale where the rate depends on the total income.
– Rental income is considered for individual tax calculation, and the tax rate ranges from 15% to 40%.
- Taxes on property sales:
– The seller pays a tax on the profit made from selling the property.
– The tax is only paid on the difference between the purchase price and the selling price.
– If the seller owned the property for more than 5 years, they are exempt from paying taxes.
– Additionally, tax expenses can be reduced by providing receipts for repairs, which are considered property improvements.
