Property Tax in Turkey

  1. 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.

 

  1. 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%.

 

  1. 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.

 

  1. 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.

 

  1. 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%.

 

  1. 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.

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