|Annual Real Estate Tax:
For Apartments,Villas and Penthouses: 0.1% of the declared value on the title deed. This amount is paid in two payments. ( May and November)
Declared Value: 40.000
Tax to be paid: 40.000 * 0.001= 40 lira annualy
Rental Income Tax:
The declared rental income can not be less than 5% of the declared value of the property. For 2006, the first 2.200 Lira is tax free. Above this amount , 20% tax is compulsory to be paid.
Rental Income: 5000 lira
Tax free portion: 2200 Lira
Taxed portion: 3800 Lira
Taxed amount: 3800 * 0.2= 760 Lira
When the property is re-sold:
If a property is owned for 4 years and sold after this period, the capital gain is tax free. If the property is sold within the first 4 years of the ownership., capital gain has to be declared. For 2006, the first 14.000 lira of the capital gain is tax free. Above this amount 20% tax is compulsory to be paid.
Declared Value at the purchase 40.000 lira
Declared Value at the re-sale: 60.000 lira
Capital Gain : 20.000 lira
Tax free portion: 14.000 lira
Taxed portion: 6.000 lira
Tax to be paid: 6.000 * 0.2= 1200 lira
>>>In Turkey the declared value is much less than the actual sales value. The government set minimum declared value for each district.
>>> As an example, an apartment that we sold for 91.000 euro last year in Alanya ( 100 m2 ) is declared as 22.000 Euro in the land registry office.
>>> An apartment that we sold for 75.000 Euro in Mahmutlar is declared as 13.000 Euro in the land registry office.