Property Purchase Tax & Real Estate Valuation report
Property Purchase Tax in Turkey / Turkish Stamp Duty
What is Turkish stamp duty on property?
At whatever point a property sale occurs in Turkey, stamp duty obligation is paid. On most instances the property buyer pays the full rate. On specific occasions however the buyer and seller can split the full percentage. The total sum is determined as a calculated amount of the selling cost.
The current property purchase Tax in Turkey is 4% this was introduced by the government authority in 2020 alongside the incentive of becoming a Turkish citizen when you own 250.000 USD worth of property in Turkey. The stamp duty current rate as in accordance with prevous years is set at 4 %.
Real Estate Valuation report
Foreigners and locals alike who are wanting to purchase property in Turkey need to acquire a real estate valuation report prior to getting paperwork done for their title deeds. The change in regulations, announced by the Turkish General Directorate of Land Registry and Cadastre (TKGM), came about after a pilot scheme in Istanbul successfully trialed the procedure.
Why Has Turkey Introduced This New Regulation?
At first expected to be carried out by 2022, Turkey presented the plan forward to combat tax fraud and irregular valuing insistences. In Turkey the selling price of a property is declared on the title deeds, and beginning now and onto the not so distant future, that price will be the comparable as the real estate valuation.
Apartment complexes are normal in Turkey and consistantly sold with 30 units or more units in a solitary structure. In the case the development construction company has articulated lower prices for apartments previously sold, the new system will signal irregularities leaving the construction company to confront enquires by the tax man.
The new law in a like manner intends to ensure foreign real estate investors who are unimformed of Turkey’s housing market tax system and could fall foul of large tax bills when they later sell the property on or buy property for more than they are worth.
The government is certain this new report will forestall irregularities in the housing pricing market, and increase Turkey’s image for foreign real estate investors.
Valuation Department and SPK Validated Experts
The official division responsible for giving the reports is the Tasinmaz Degerleme Daire Baskanligi. For a resonable countrywide framework to be realized, they are using the same practices as utilized in different countries and will reliably publish reports and studies about the real estate valuation industry. Evaluations will be completed by SPK Validated experts who consent to terms, conditions, and standards as outlined by the Capital Market Board of Turkey.
About the Real Estate Valuation Reports
Real estate valuation reports have a three-month authenticity period in which if the buyer cancels a sale, the seller can utilize the same appraisal report for another sale. With off-plan properties or homes in the construction stage, the valuation team will estimate the value at the time of completion.
Information recorded on a valuation report will coordinate with those recorded on title deeds, and incorporate however are not restricted to area coordinates, prices of property within a certain radius, photos, any obligation associated to the home, and affirmation acknowledgment by the Land Registry and Cadastre Directorate.
Need to Know for Turkey Property Buyers
The cost of the real estate valuation report is between 1500 to 2000TL, and payment must be made legitimatley to the real estate valuation department with the TKGM. Estate agents are not permitted to take a commission on this payment or to promote themselves as independent valuators.
To forestall a conflict of interest, anyperson engaged with the official procedure of valuing property or giving the report is not allowed to own or be employed by an estate agent. The typical time span for a report to be generated is six days for Istanbul provinces and three-four days for all other regions in Turkey.
At the time of lawfully taking ownership for the property, the title deeds office will moreover enter the real estate valuation report into their system, prior to returning it to the buyer. Across Turkey, there are around 140 officially verified SPK valuators, and we or your lawyer can provide you with a list of choices in the region you want to purchase in.