Understanding Taxes and Fees for Real Estate Transactions in Turkey
When purchasing property in Turkey, it's essential to be aware of the various taxes and legal fees involved in the transaction. Here’s a breakdown of the main costs:
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Value Added Tax (VAT):
- In Turkey, VAT rates for real estate are set at 1%, 10%, and 20%. The standard VAT rate for purchasing real estate is generally 20%.
- Investors may qualify for a VAT exemption under specific conditions as outlined by law.
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Title Deed Fee:
- The title deed fee is 4% of the property’s sales price and is typically split between the Buyer and Seller.
- The terms can vary; some sellers may require the Buyer to cover the entire fee, while others may agree to share the cost equally.
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Additional Legal Fees:
- While this does not include specific amounts, potential legal fees could arise from hiring a lawyer to assist with the property purchase process, including contract review and documentation preparation.
Being informed about these taxes and fees will help you plan your budget effectively and ensure a smoother purchasing experience.