Do You Know Which Taxes You Have to Pay When Buying Land?

Do You Know Which Taxes You Have to Pay When Buying Land?

In almost every country in the world, every citizen is obliged to pay taxes. Tax payments, which are necessary for the state to finance public services and ensure social order, contribute to the development of society.

There are many types of taxes in different branches within the tax systems shaped according to the economic structure, social policies and financial needs of the countries.

We have scrutinised the curiosities about tax payments, property-housing tax in our previous blog posts.

In this article, we will examine which taxes landowners are obliged to pay.

Types of Taxes in Turkey

State,

- Education, health care, security, infrastructure, social assistance, different public services,

- Fulfilment of basic duties and responsibilities,

- Protection and sustainability of public assets,

- Taxes are used to protect citizens and their property and to ensure public security.

Among the most common types of taxes;

- Income Tax

- Value Added Tax (VAT)

- Corporate Tax

- Property Tax

- Special Consumption Tax

- There are fees and stamp tax.

Which Taxes are Landowners Liable for?

Another purpose of the tax system is to keep goods and services under control. Citizens pay taxes on the goods they own/purchase in accordance with the procedures.

You are likely to encounter various tax payments when buying land in Turkey.

However, if you do not have any information about this process, it will be useful to learn which tax payments you are responsible for before the sale process.

Title Deed Fee:

Firstly, the title deed fee payment. The title deed fee, which is a type of tax paid during the title deed transfer of the land, is calculated at a rate determined over the purchase and sale price.

VAT (Value Added Tax):

Whether or not you will pay VAT on the land you buy is related to the previous owner of the land you bought/will buy. If the previous land owner was a taxpayer, VAT may not be paid, but if the previous owner was not a taxpayer, VAT may have to be paid.

Property Tax:

After the purchase is realised and you own a land, you are required to pay property tax on that land.

Property tax is calculated on a tariff determined by the municipalities. If you want to get more detailed information about property taxes, you can access the relevant content here.

Environmental Cleaning Tax:

"Environmental and Cleaning Tax", which is demanded by municipalities, is paid for environmental cleaning services and is collected together with property tax.

Zoning Share:

This tax, which is determined depending on the zoning status of the land, is calculated by determining a rate according to the intended use of the land.

Stamp Tax: Stamp tax must be paid during some title deed transactions. Stamp tax is determined and collected according to the contract price or title deed value.

It should be noted that tax applications and payment amounts may change over time.

In order to get the most up-to-date information, it would be best to contact the local tax offices or get help from an expert.

If you want to get help from an expert in matters such as real estate and investment, you can contact Proturk Property with more than 25 years of experience in the sector.

You can visit Proturk Property's blog page to learn the most up-to-date information in the property sector.