Taxes and Duties in Real Estate Purchases and Sales
Although real estate purchases and sales are an exciting process, they also come with some financial obligations. In this article, we will examine the taxes and duties that must be paid in real estate purchases and sales in detail.
Title Deed Fee:
One of the most important fees is the title deed fee. The buyer and seller pay a title deed fee of 4% of the title deed price. For example, if you are buying a house for 1 million TL, you must pay a title deed fee of 40,000 TL.
The title deed fee is paid in two, 2% for the buyer and 2% for the seller.
In some cases, the duty rate may vary. For example, for those who are buying a house for the first time, the title deed fee is applied at a rate of 2%.
Stamp Duty
A stamp duty of 2.5 per thousand is paid in real estate purchases and sales. This tax is shared equally by the buyer and the seller.
Stamp duty, unlike the title deed fee, is not calculated based on the value of the real estate, but on 2.5 per thousand of the title deed price.
Value Added Tax (VAT)
As of January 01, 2023, VAT has been abolished on housing sales. Therefore, VAT is not paid when buying a house.
For real estate used for commercial purposes, VAT is applied at a rate of 18% of the title deed price.
Municipality Advertisement Fee
A municipality advertisement fee is also paid in real estate purchases and sales. The amount of this fee varies by municipality.
The municipality advertisement fee is generally applied at a rate of 1 per thousand of the title deed price.
Notary Fee
A notary is needed for title deed transactions in real estate purchases and sales. The notary fee is paid according to the tariff determined by notaries.
Other Expenses
There may be some additional expenses such as land registry cadastre fee, property tax, real estate value determination fee in real estate purchase and sale.
Payment of Taxes and Duties
Taxes and duties are paid during the title deed transactions.
You can get help from a real estate consultant in preparing the necessary documents for title deed transactions and making payments.
