When you are buying property in Turkey you are obliged to pay property tax.
The cost of property purchase tax is 4% of the cadastral value. Lately, as real estate agents, we've been asked to show in Land Registry Office full selling price. So the taxation supposes to be 4% of the selling price. Which is more logical but it will take some time to integrate into the system fully.
Yearly property tax.
The property tax shall be calculated every year according to the current cadastral value of the property. The taxes for residential units in the big cities will cost you 0.2% of the cadastral price per year. The rate for suburbs and villages is 0.1%. The land has the most expensive tax rate of 0.6% and commercial property in Turkey has a tax rate of 0.4%.
Since Turkey is a place with a huge history, the cultural contribution (kültür payı) is included in the annual property tax.
How to pay property tax in Turkey?
Payment shall be made twice a year at the district municipality: the first payment is until May, the second is until November. As a rule, this fee is paid twice a year, dividing the entire amount into two equal parts, but you can choose to pay for the whole year at once if it is more convenient for you.
The municipality in Turkish is "BELEDIYE". So you shall go there together with your TAPU (title deed). If you are standing in front of the building, you will see an entrance door, and on the right side of the door, there are small windows. These are cashiers. You just show them your TAPU and they will tell you how much you have to pay.
Serik municipality @36.9149354,31.1041719
Earlier, when Belek was a village, our Belediye was located in Belek. But after we became a district of the city of Serik, we have to do all the legal procedures in Serik. But I believe that soon all the payments will be moved online. Like in Alanya for example. There the property tax payments can be made online on the website of the city municipality. We are waiting.
IMPORTANT! After purchasing a property in Turkey you (together with your agent) must go to the municipality to register your TAPU (title deed) in their system.
Sometimes, when I go to the municipality to get the cadastral evaluation of the property, the property turned to be unregistered. So the taxes haven't been paid. That property is impossible to sell. To be able to prepare the documents for sale you need to register that property and pay all the missing taxes.
By the way, the tax on real estate in Turkey for foreigners is absolutely the same as taxes for Turkish citizens. I think that is a big plus for foreign investors!
If you still have some questions please don't hesitate to ask. You can always call us to drop us a message.