real estate – Muhasebe News https://www.muhasebenews.com Muhasebe News Mon, 18 May 2020 09:46:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.4 I want to buy a real estate in Turkey. What is my tax liability? https://www.muhasebenews.com/en/i-want-to-buy-a-real-estate-in-turkey-what-is-my-tax-liability/ https://www.muhasebenews.com/en/i-want-to-buy-a-real-estate-in-turkey-what-is-my-tax-liability/#respond Mon, 18 May 2020 11:00:40 +0000 https://www.muhasebenews.com/?p=84769 According to the Fees Code, the total rate of Title Deed Fee is 4 %. Both the purchaser and the seller are liable to pay the title deed fee as 2 % of the price of real estate (except Value Added Tax).

The amount of invoice arranged for real estate   and the amount of transfer from the bank should be the actual purchase price.

Following the procedures at the land office, you can pay your title deed fee to authorized tax offices or banks having a contract with Turkish Revenue Administration or PTT branches. Also, if you have a Turkish identification number not a foreigner identification number or a tax identification number and an e-collection serial no, you can pay your title deed fee on web and mobile applications of the Interactive Tax Office (ivd.gib.gov.tr).

After getting your title deed, you should inform the municipality affiliated to your real estate location about your property tax.

Source: Revenue Administration of Turkey
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/i-want-to-buy-a-real-estate-in-turkey-what-is-my-tax-liability/feed/ 0 Real Estate Sector in Turkey https://www.muhasebenews.com/en/real-estate-sector-in-turkey-2/ https://www.muhasebenews.com/en/real-estate-sector-in-turkey-2/#respond Fri, 06 Mar 2020 09:00:20 +0000 https://www.muhasebenews.com/?p=79128 Real Estate Sector in Turkey

Turkey is one of the most promising real estate markets in Europe, and the mantra “location, location, location” rings especially true for this country. Strategically situated at the crossroads of Europe, the Middle East, and Central Asia, and home to almost 82 million people, Turkey offers great opportunities for real estate developers and investors by combining a large construction sector with growing commercial and industrial output.

  • The real estate sector accounted for approximately 8.4 percent of GDP in the last decade. On the investment side, FDI inflows stood at USD 13 billion, with real estate and construction garnering USD 5.9 billion (45 percent) of total FDI in 2018.
  • Urban renewal and mega projects dominate the agenda for the foreseeable future, particularly in Istanbul. Some projects in the city include Marmaray, Canal Istanbul, Yavuz Sultan Selim Bridge, Eurasia Tunnel, 3-Storey Grand Istanbul Tunnel, and Istanbul’s 3rd airport.
  • The Urban Renewal and Development initiative will encompass 7.5 million housing units. The initiative has a budget of USD 400 billion, with a large contribution coming from the private sector.
  • ​The total number of homes sold in the Turkish property market reached 1.4 million units in 2018; likewise, sales of real estate to foreigners began to increase following the abolishment of the reciprocity law in 2012. In 2018, 39,663 homes were sold to foreigners in Turkey, marking a year-on-year increase of 78.3 percent. Regarding home sales to foreigners, Istanbul was the top-performing province with 14,270 sales in 2018, followed by Antalya with 7,938 sales, Bursa with 2,720 sales, and Ankara with 2,133 sales.
  • By 2019 year-end, the existing Grade A office stock in Istanbul will have surpassed 5.7 million square meters. Annual gross leasable area growth in the office market has been around 42 percent on average between 2010 and 2019. There is more than 1.7 million square meters of office supply under construction, and it is expected that the total grade A office supply will reach almost 7.4 million square meters gross leasable area by the end of 2023.
  • 433 shopping centers are operational in Turkey with a total gross leasable area of 13 million square meters. 126 shopping centers in Istanbul with a total gross leasable area of 4.8 million square meters represent 37 percent of the total leasable shopping center area in Turkey.
  • In spite of the growth in recent years, Turkey is still below the average of total leasable area per person compared to the European average. This indicates potential for further retail growth in Turkey.​​​

 

For further information, you can visit: https://www.invest.gov.tr/en/sectors/pages/real-estate.aspx

Source: Republic of Turkey Investment Office / link: https://www.invest.gov.tr/en/sectors/pages/real-estate.aspx
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/real-estate-sector-in-turkey-2/feed/ 0 Is it possible to benefit from the exemption of real estate sales income stated in the corporate tax law for the income earning from the sale of the building which has been started to be built on the land that has been in the company’s assets for more than two full years and has not been completed yet? (In Turkey) https://www.muhasebenews.com/en/is-it-possible-to-benefit-from-the-exemption-of-real-estate-sales-income-stated-in-the-corporate-tax-law-for-the-income-earning-from-the-sale-of-the-building-which-has-been-started-to-be-built-on-the/ https://www.muhasebenews.com/en/is-it-possible-to-benefit-from-the-exemption-of-real-estate-sales-income-stated-in-the-corporate-tax-law-for-the-income-earning-from-the-sale-of-the-building-which-has-been-started-to-be-built-on-the/#respond Tue, 17 Sep 2019 07:00:42 +0000 https://www.muhasebenews.com/?p=67153 Is it possible to benefit from the exemption of real estate sales income stated in the corporate tax law for the income earning from the sale of the building which has been started to be built on the land that has been in the company’s assets for more than two full years and has not been completed yet?

In the construction of the building, which has been built or is being built on the land registered in the Company’s assets for more than two years and which is being followed in the investments account, 50% of the income to be obtained from the sale of the land is exempt from corporate tax. The income from the sale of buildings under construction will not be subject to an exemption, in Turkey.

Source: GİB
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/is-it-possible-to-benefit-from-the-exemption-of-real-estate-sales-income-stated-in-the-corporate-tax-law-for-the-income-earning-from-the-sale-of-the-building-which-has-been-started-to-be-built-on-the/feed/ 0 What will be the status of the corporations in terms of VAT in Turkey, in the event of sale of the real estate registered in its asset for more than two years? https://www.muhasebenews.com/en/what-will-be-the-status-of-the-corporations-in-terms-of-vat-in-turkey-in-the-event-of-sale-of-the-real-estate-registered-in-its-asset-for-more-than-two-years/ https://www.muhasebenews.com/en/what-will-be-the-status-of-the-corporations-in-terms-of-vat-in-turkey-in-the-event-of-sale-of-the-real-estate-registered-in-its-asset-for-more-than-two-years/#respond Wed, 11 Sep 2019 14:30:29 +0000 https://www.muhasebenews.com/?p=66729 What will be the status of the corporations in terms of VAT, in the event of sale of the real estate registered in its asset for more than two years?

Pursuant to Article (17/4-r) of the Law No. 3065, handovers carried out by the sale of the shares of subsidiaries and the immovables which are in the assets of the corporation for at least two full years shall be exempted from VAT, in Turkey.

In order to be exempted from the sale of immovables (land, real property, buildings) to be sold and shares of subsidiaries, 2 full years (730 days) must have been registered in the corporation’s assets.

Exemption clause shall not be applied in the delivery of immovables in the assets of corporations, which trade assets within the scope of exception (trading or renting of immovables customarily).

Source: Revenue Administration
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/what-will-be-the-status-of-the-corporations-in-terms-of-vat-in-turkey-in-the-event-of-sale-of-the-real-estate-registered-in-its-asset-for-more-than-two-years/feed/ 0 What Are Your Tax Liabilities When You Buy a Real Estate in Turkey? https://www.muhasebenews.com/en/what-are-your-tax-liabilities-when-you-buy-a-real-estate-in-turkey/ https://www.muhasebenews.com/en/what-are-your-tax-liabilities-when-you-buy-a-real-estate-in-turkey/#respond Tue, 30 Oct 2018 10:00:49 +0000 https://www.muhasebenews.com/?p=12679 According to the Fees Code, the total rate of Title Deed Fee is 4%. Both the purchaser and the seller are liable to pay the title deed fee as 2% of the price of real estate (except Value Added Tax).

The amount of invoice arranged for real estate and the amount of transfer from the bank should be the actual purchase price.

Following the procedures at the land office, you can pay your title deed fee to authorized tax offices or banks having a contract with Turkish Revenue Administration.

After getting your title deed, you should inform the municipality affiliated to your real estate location about your property tax.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/what-are-your-tax-liabilities-when-you-buy-a-real-estate-in-turkey/feed/ 0 Do You Know The Estate Tax Rate? https://www.muhasebenews.com/en/do-you-know-the-estate-tax-rate/ https://www.muhasebenews.com/en/do-you-know-the-estate-tax-rate/#respond Fri, 26 Oct 2018 06:00:02 +0000 http://www.muhasebenews.com/?p=9318 The current estate tax rates are stated below:As one can see in the table, the rate of the dwellings in Metropolitan Municipalities is 2 per thousand. (Such as; İstanbul-Ankara-İzmir-Eskisehir-Adana) The rate of the dwellings out of Metropolitan Municipalities is one per thousand.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/do-you-know-the-estate-tax-rate/feed/ 0 How Tax deduction is made from rental payments? https://www.muhasebenews.com/en/how-tax-deduction-is-made-from-rental-payments/ https://www.muhasebenews.com/en/how-tax-deduction-is-made-from-rental-payments/#respond Wed, 25 Apr 2018 10:59:23 +0000 https://www.muhasebenews.com/?p=28534 How tax deduction is made from rental payments?
The person renting goods and services according to the Income Tax Law, article no.94, has to deduce income tax from rental payments.

1- Renters or rental institutions have to deduce %20 amount of income tax from rental payments on the basis of gross value.

2- Tax deduction will be made on the basis of annual paid rental amount.
Example: When 3 months or annual rental payment is collected, rent will be liable to tax deduction.

***If renter is liable to simple entry taxation, he/she does not have to deduce tax from rental payment since he/she does not have liability to deduce tax.

3- If real property is used as both a home and a workplace; the whole amount of rental payment will be liable to tax deduction.

Source:Tax Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/how-tax-deduction-is-made-from-rental-payments/feed/ 0 FDI In Turkey https://www.muhasebenews.com/en/fdi-in-turkey/ https://www.muhasebenews.com/en/fdi-in-turkey/#respond Mon, 13 Mar 2017 12:33:09 +0000 http://www.muhasebenews.com/?p=10299 FDI Inflow to Turkey (USD billion)

Source: Central Bank of the Republic of Turkey

FDI Inflow to Turkey by Year

*Loans those companies with foreign capital are given by foreign partners
Source: Central Bank of the Republic of Turkey

FDI Inflow to Turkey by Sector
During the last five years, the intermediation and manufacturing sectors have attracted the highest amount of FDI.

(*) Provisional
Source: Central Bank of the Republic of Turkey

 Geographic Breakdown of FDI Inflow to Turkey
The majority of FDI inflows to Turkey come from Europe, North America, and the Gulf countries.

(*) Provisional
Source: Central Bank of the Republic of Turkey

Companies with International Capital
 As of June 2016, around 50,000 companies with foreign capital operate in Turkey.

Number of Companies with International Capital(Cumulative, in thousands)

Source: Ministry of Economy
*as of June 2016

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

]]> https://www.muhasebenews.com/en/fdi-in-turkey/feed/ 0 Real Estate Sector in Turkey https://www.muhasebenews.com/en/real-estate-sector-in-turkey/ https://www.muhasebenews.com/en/real-estate-sector-in-turkey/#respond Mon, 13 Mar 2017 08:16:06 +0000 http://www.muhasebenews.com/?p=10423 Turkey is one of the most promising real estate markets in Europe, and the mantra “location, location, location” rings especially true for this country. Strategically situated at the crossroads of Europe, the Middle East, and Central Asia, and home to almost 78 million people, Turkey offers great opportunities for real estate developers and investors by combining a large construction sector with growing commercial and industrial output.

Some key facts and figures in the Turkish real estate sector include:

  • The real estate sector accounted for approximately 5 percent of GDP in the last decade. On the investment side, FDI inflow rose to USD 16.5 billion, with real estate and construction garnering USD 4.1 billion (24.8 percent) of total FDI in 2015.
  • Urban renewal and mega projects dominate the agenda for the foreseeable future, particularly in Istanbul. Some projects in the city include the Marmaray, Canal Istanbul, the third Bosporus Bridge, and Istanbul’s third airport.
  • It is estimated that around 6.7 million residential units nationwide will be demolished and rebuilt over the next 20 years, meaning an average of 334,000 units per year. Around USD 15 billion of financing will be required each year for urban renewal projects. In total, a budget of USD 400 billion has been allocated for this initiative, with the private sector taking the lead role.
  • According to the Knight Frank Global House Price Index, Turkey ranked first in the 55-location index in Q4 of 2015 in terms of annual price growth index. Turkey saw a year-on-year increase of 18.4 percent and thus emerged as the top-performing housing market in the world, ahead of New Zealand, Sweden, and Australia.
  • The total number of houses sold in the Turkish property market reached 1,289,320 units in 2015; likewise sales of real estate to foreigners began to increase following the abolishment of the reciprocity law in 2012. In 2015, 22,830 houses were sold to foreigners in Turkey, marking a year-on-year increase of 20.4 percent. With regard to house sales to foreigners, Istanbul was the top-performing province with 7,493 sales in 2015, followed by Antalya with 6,072 sales, Bursa with 1,501 sales, and Yalova with 1,425 sales.
  • Office construction licenses obtained throughout Turkey increased by 27 percent, and together totaled 7 million square meters of additional planned office space in 2013. Class-A office space supply is expected to reach 6.5 million square meters by the end of 2017 with the completion of projects such as the Istanbul Finance Center, which, according to projections, will provide employment for 30,000 people.
  • 368 shopping centers are operational in Turkey with a total gross leasable area of 10.89 million square meters. 108 shopping centers in Istanbul with a total gross leasable area of 4 million square meters represent 37 percent of the total leasable shopping center area in Turkey.
  • According to JLL’s Cross Border Retailer Attractiveness Index 2015, Istanbul is the 7th most attractive market in Europe after London, Paris, Moscow, Milan, Madrid and Rome.
  • In spite of the growth in recent years, Turkey is still below the average of total leasable area per person compared to the European average. This indicates potential for further retail growth in Turkey.
  • By the end of 2015, there were 13,615 registered accommodation facilities. 9,188 of these facilities were licensed by their respective municipalities, while the remaining 4,427 held tourism operation licenses. The combined total bed capacity of these facilities exceeds 1,250,000, although there is still a gap between supply and demand, particularly in Istanbul.
  • There are currently 281 projects in the pipeline that would add 74,130 much-needed beds to Turkey’s short supply.

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

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