Jump to content
Fada

Taxes about a Turkish property

Rate this topic

Recommended Posts

Hi everyone,

Please I need a serious advice regarding the tax I should pay after purchasing a property in Istanbul.

I got a website to see if I should pay tax, but when I login , always says there is no tax to be paid!!!

I bought an apartment in Istanbul on the 03. October 2018, I bank transfer the money from outside to buy this property.

1- Recently  I read that a foreigner could get back the 18% VAT for the first property !! Is it true and if so how I get it back?

2- I know I should pay some tax to the Turkish authority after buying my apartment (I have been to belediye but they could not understand me):

    - How I know correct how much I should pay?

   - I bought the apartment on 03.10.2018 from  building company which is build it on 2017,

     How I can be sure that the building company has paid all the taxes regarding my apartment till the purchasing date which is 03.10.2018?

I appreciate very much your quick answer. 

Share this post


Link to post
Share on other sites

Hi Fada, 

3 hours ago, Fada said:

1- Recently  I read that a foreigner could get back the 18% VAT for the first property !! Is it true and if so how I get it back?

That is correct if you fulfill certain conditions. Turkish on Non-Turkish citizens who live abroad (at least 6 months for the past 12 months) is free from paying VAT (VAT rate varies from %1 to %18 depends on the value of the property) since 5th May 2017 and so on. One of the most important criteria is that fund has to be transferred from a bank located out of Turkey and deposited into a bank in Turkey as a foreign currency (USD, EUR etc.).

However, there is an hesitation here, as VAT is normally has to be an extra to the purchase price, but contractors usually give buyers a flat fee without making any reference to VAT. In the absence of a cost breakdown you are not aware of how much VAT you have actually paid to the contractor.  To find it out, I recommend you to contact with the seller and ask if they claimed a VAT refund which actually you should have benefit. 

 

3 hours ago, Fada said:

2- I know I should pay some tax to the Turkish authority after buying my apartment (I have been to belediye but they could not understand me):

    - How I know correct how much I should pay?

   - I bought the apartment on 03.10.2018 from  building company which is build it on 2017,

     How I can be sure that the building company has paid all the taxes regarding my apartment till the purchasing date which is 03.10.2018?

 

This is another tax, so called Building Tax, apart from the VAT which is only due at the first purchase. Building tax needs to be paid once in a year (could be in 2 equal installment) to the municipality where your property is located . You are only responsible of paying Building Tax once and if you get the title of deed. Therefore, you do not need to take the previous terms into consideration. That was obviously previous owners debt and you can't be jointly responsible of that. Fyi.. 

Regards, 

 

 

Share this post


Link to post
Share on other sites

Hi Eglegal,

(In the absence of a cost breakdown you are not aware of how much VAT you have actually paid to the contractor.)

- Indeed I bought the apartment directly from a contractor, and I have an invoice which shows how much VAT in that invoice  , it was 1% and also written how much in TL.

But where I should start to reclaim the VAT?

What I need to show the authorities beside the invoice? 

And is the process easy or I should get some help, especially I do not speak Turkish yet?

BR 

 

 

 

Share this post


Link to post
Share on other sites

Hi Fada, 

In respect of VAT, not you but the contractor is responsible of paying that to the government. For this reason, if any VAT return is applicable then contractor would be able to claim it.

However, for this particular transaction, VAT needs to be claimed within a 1 year deadline period after the title of deed has been transferred. I doubt that contractor has made it on time. Still, best way is to contact with the seller (and/or its accountant) to figure that out. 

Regards,      

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...