Investment Guide
REAL ESTATE ACQUISITION AND INVESTMENT GUIDE IN TURKEY
Turkey, noting significant progress with its developing economy in recent years, investments in construction and real estate sectors, is becoming a center of attraction for institutional and individual investors. In this process, the country offers significant opportunities to foreign investors who need to master local dynamics to make successful investment decisions. As Trem Global team, we are closely following developments in order to provide support to investors in real estate acquisition and investment issues, which are highly dependent on internal and external factors and have unique problems, with our experienced and industry-dominated staff. In order to meet the needs of our customers in Turkey, and to help them achieve successful results in investment decisions we present Real Estate Acquisition and Investment Guide in Turkey to the investors, where we provide sector-specific knowledge. The information in this guide is general, not social, tax or legal advice.
Rate of Real Estate Tax
The rate of real estate tax is determined as different, normal, incremental and discounted rates according to the purpose of use of the various buildings, their location and some properties of the owners.
The rates in the property tax are determined as one-thousandth for dwellings and two-thousandths for other buildings and businesses. The Council of Ministers is authorized to reduce these rates by half and increase them threefold. For buildings within the boundaries of metropolitan municipalities, these rates are increased by 100%, in other words, two-thousandths in residential buildings and four-thousandths in other buildings. On the other hand, it is foreseen that the land tax, which is significant in urbanization and generally subject to a higher rate of tax than the buildings, cannot be less than the tax to be collected from the land in order to prevent the sanitary objections to be filled with makeshift or unlicensed buildings.
Property tax rate for retirees, housewives, disabled people, veterans, martyrs, widows, orphans and those who have no income, reduced to zero and not received since 2007, provided that they have a single dwelling whose gross area does not exceed 200 m2.
The discounted rate is applied to the portion of the tax value that hits the share. It is not deemed necessary to live in the residence of the taxpayer himself. However, those who have shares in more than one dwelling cannot benefit from the discount in dwellings. In order to benefit from the reduced rate, an application must be made to the municipality. Proof of documents clearly demonstrating the situation must be submitted together. If any of the conditions to benefit from the reduced rate is lost, the change is notified.
Rate Type
Building Type
Location of Building
Taxpayer Status
Rate (per thousand)
Normal
Residential
-
-
1
Non-Residential
-
-
2
Incremental
Residential
Metropolitan borders and their adjacent areas
-
2
Non-Residential
Metropolitan borders and their adjacent areas
-
4
Reduced
Residential
(In case of having a single house not exceeding 200 m2)
-
People with no income.
0
-
Only persons who receive monthly Social Security Authority.
0
-
Veterans, widows and orphans of martyrs
0
