Property Sales Process | Selling Costs

Overview:
The costs involved in selling a property registered in your name are as follows:

Annual Real Estate Tax
Annual Property Tax rates for cultivated land; uncultivated (for building) land, non-residence-purpose buildings, and residential buildings are 0.1%, 0.3%, 0.2%, and %0.1, respectively. Tax is calculated on the basis of the declared value of the asset which can not be less than a threshold determined by tax authorities.

Tax payments are made in two equal installments in the period March-to-May and November each year and those are collected by the local governments (municipality). The tax base is annually updated by a coefficient determined by the Ministry of Finance taking into account the inflation rate.

Transfer tax
Transfers of real estate are subject to Deed Fee (Tapu Harcý), payable by both the seller and buyer assessed at 1.5% of the transaction amount (or 3% in total). However, the Deed Fee amount may be increased if the transaction amount is less than the latest property tax valuation.

Real estate valuation is performed by the Valuation Commission which established by tax departments dealing with real estate other than land plots and lands. A separate Valuation Commission for land plots is established by the relevant local municipality and for lands is established by the relevant governor’s office. The Valuation Commission sets the unit value for each street or avenue in accordance with the characteristic of the location.

Land Registry fee
All land is required to be registered with the Land Registry. However, some specific areas owned by the State or public institutions are registered in a special section of the Land Registry or are not registered. Land Registry fees usually amount to between £50 and £100

Income Tax
Income tax is levied on the difference between the purchase cost and sale amount. However, there is a full Income Tax exemption for gains of an individual on the sale of real estate that is owned by the seller for five years before its sale.

Stamp Duty
This may apply to sale agreements if the parties execute an agreement in addition to the official sale agreement made before the Land Registry officer.

In addition to taxes which apply to transfers, the buyer will held liable for property taxes on the real estate incurred prior to the sale. Therefore, buyer should request the copies of receipts of the property tax payments from the seller before consummating the acquisition.   

Legal Fees
Full legal fees, which are likely to be £1,000 - £1,500.

Estate Agent Fees
Whether or not you decide to sell your property before or after completion, you will have to pay agents fees for the marketing of your property. Depending on the agent, a seller would be looking at a fee of around 3%

Capital Gains Tax
In general, capital gains in Turkey, whether for an individual or for a company, is added to the regular tax.

• The rate of standard tax is identical to the rate of normal income tax on the income of an individual - that is from 15% - 40%.
  
  
• A capital gain from the sale of Turkish securities that were held by the vendor for at least 1 year before the date of sale is exempt from tax.

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