There are couple of important things to be aware of when you wish to sell your property in Turkey.
CAPITAL GAINS TAX:
How long have you been the owner of the property? If you have owned it for 5 years or longer then you do not need to worry about Capital Gains Tax. If you have owned the property for less than 5 years than you need to do some calculations about how much tax you would need to pay. It is important to find out what the purchase price is on the title deed. It can a tricky subject as some of the property sellers advise us that they are selling the property for less than what they had paid for it. However, there have been many local builders or estate agents who have sometimes not provided the correct advice during the purchase process. Turkish Property purchase tax is 4% (used to be 3% up until 2014) and local Authorities have to give a ‘Minimum Property Value Document’ which is generally much lower than the actual market value of the property. It’s a bit like a council tax valuation.
Please contact us for more information about this subject.
What to pay: The tax amount payable will be calculated by subtracting the declared original purchase value of the property from the declared sales value of the property – the amount of profit made from the sale, is the amount which will be taxed.
If your capital gain is less than 6,000 Turkish Lira (TL) then you do not need to pay Capital Gains Tax. If it is higher than 6,000 TL then various rates apply;
Profit between 6,000 Lira and 7,000 Lira, the tax is 15%
Profit between 7,000 Lira and 18,000 Lira, the rate is 25%
Profit between 18,000 Lira and 40,000 Lira, the rate is 27%
Profit any amount over 40,000 Lira, the tax rate is 35%
If you send us a copy of your TAPU then we would be able to tell you more about your property in Turkey.
A Case Study:
You purchased an apartment in 2014 and paid 200,000 Turkish Lira for it. Now you found a buyer for 212,000 and your Capital Gain is 12,000 TL. You are now due to pay 25% tax based for the amount between 7,000 & 12,000 TL which is 5,000 TL x 25% = 1,250 TL. Please do not hesitate to contact us for further assistance.
MARKETING YOUR PROPERTY IN TURKEY:
It is important to appoint an agent who is registered with the correct professional bodies, regulated and official. In addition to this, make sure that they are proactive and know how to market a property in Turkey and outside of Turkey.
Keyholders International (KHI) is registered in the UK and works in Liaison with Keyholders Fethiye which is registered in Turkey, we are also members of the Turkish Estate Agency Authorities, TPO, National Associations of Estate Agents (UK), Trading Standards (UK & TR), Chambers of Commerce in Turkey and Estate Agencies Union in Turkey.
KHI Property Group advertise properties with two Keyholders owned Websites, Google, Rightmove Overseas, A Place in the Sun, Zoopla, Prime Location, Sahibinden, Milliyet, UK Based Office and Local Offices in Istanbul, Fethiye, Oludeniz, Antalya, Didim and Bodrum. We also attend international property exhibitions and have partners in the UAE.
We provide an efficient and professional estate agency service including providing legal advice via our approved legal practitioners, mortgage applications for the prospective buyers, surveying service for the sellers and buyers, airport pick up and drop of services for the prospective buyers, inspection trips, conveyancing service in Turkey, fully qualified and equipped sales consultants with English, Turkish, Russian and Arabic Languages.
We do not charge VAT for the exclusive clients and properties.
We are registered under the Anti Money Laundering regulations and regulated in the UK.