Some Important Facts on Tax   


in Turkey...


Investment Property Abroad

Some Important Facts on Tax in TURKEY    

Transfer Tax is 3 % of the value noted by the municipal tax department (property tax).

Before May 2007, the amount on which Transfer Tax was paid was fairly arbitrary. It's preferable to pay tax on the amount actually paid.

        -  If you sell the property at a profit within 5 years, you need to pay capital gains tax on this.

        - VAT is charged on newly built properties if the residential floor area is more than 150 m2.

        - If you lease property and use it for commercial purposes, you will have to pay "stopaj", which is a withholding tax payment.

        - You will have to pay income tax on any income from renting out your house in Turkey. The rate varies from 5% to 35%.

        - There is also inheritance tax in Turkish law. In the event of death, the heirs should submit an application to the Turkish court (the district court) which
           decides who is entitled to whatever part of the inheritance is in Turkey ("veraset ilamı").

Inheritance tax is now 1 % to 10 %.

        - There is a treaty between the Republic of Turkey and many EU states to avoid double taxation.

        - EU pensions are not taxed in Turkey and that can be freely transferred to Turkey.

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