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.

After the procedures in title deed:
The client and the seller should pay underpaid fee with tax loss penalty in the ratio of 25%, if
1- Registered purchase and sale prices does not reflect the truth;
2- It is determined that one pays the fee through less amount than the value of real estate tax.

Source: Act of Fees – Revenue Administration

Date: 21 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.

2- WHAT IS THE MEASURE OF TITLE DEED FEE?
Title deed fee is proportional to ad volarem basis and fixed according to the sort and the quality of the procedures. 

3- WHO PAYS TITLE DEED FEES?
The people who are indicated in article 4 of the Act of Fees should pay. If the procedure is not indicated in the law, unless indicated otherwise, the people listed below are liable to pay:
3.1) The person acquiring real rights for property and limited rights in rem (if the acquiring persons are more than one, the fee should be paid in proportion to their shares),
3.2) People giving a mortgage in hypothec,
3.3) Registrants in cadasters,
3.4) People who have nuda proprietas while registering bare ownership because of heritage on behalf of the heir,
3.5) People who recede in recourse,
3.6) The buyer (except from the procedures listed above).

4- HOW IS THE TITLE DEED FEE CALCULATED?
Title deed fee paid for the transference and acquisition of real estates is calculated through declared transference and the amount of acquisition and it shouldn’t be less than real estate tax value.

“Real estate tax value” refers to the tax value determined according to article 29 of the Real Estate Tax Law no. 1319.

As a result of that, title deed fee paid for the transference and acquisition of real estates should be declared on the basis of the actual value that is paid by the transferee of the real estate to the transferor and it shouldn’t be less than real estate tax value.

This price can be the real estate tax value of the transferred real estate as a minimum; however, if the actual value of the transfer is more than the real estate tax value, title deed fee should be paid by calculating through this actual value of the transfer.

5- WHAT IS THE RATIO OF THE TITLE DEED FEE?
The ratio of the fee is 2 per thousand when calculated through the cost of the transfer for the transferee and the transferor on an individual basis. In other words,

• Transferor will pay % 2
• Transferee will pay % 2 of title deed fee respectively, during the process of transference and acquisition of real estates and it shouldn’t be less than real estate tax value.

6- WHERE SHOULD THE TITLE DEED FEE BE PAID?
Title deed fees are paid in the tax office in where the transaction is done. It might also be received by related institutions (like banks) in the event of conferring of power by the Ministry of Finance.

Furthermore, the application called ‘’e-tahsilat’’ has been initiated in the Directorate of Land Registry. Thanks to that application, title deed fees can be accrued, collected and controlled from branch banks including the branches from the other cities, ATM’s and Video Bank Branch electronically.

7- HOW MUCH IS THE PENALTY OF TITLE DEED FEE IF IT IS NOT PAID THE FULL AMOUNT?
After the procedure in the Directorate of Land Registry, if it is detected that title deed fee has been paid at a price lower than the value of the real estate tax or the cost of its transfer and acquisition does not reflect the reality (in other words, if the value of the fee is presented less than the net value), the fee that is calculated on the basis of the difference will be collected from both the transferor and the transferee by assessing the replenishment and ex officio.
Moreover, both the transferee and the transferor should pay tax loss in the ratio of 25 % as a penalty for additional title deed fee.

8- HOW IS THE TITLE DEED FEE CALCULATED FOR THE REAL ESTATES BOUGHT BY BANK CREDIT?
You should pay your title deed fee through the actual transfer cost even if you buy your real estate with bank credit.
If one part of the amount is paid with bank credit and the other part is paid in cash or with bank transfer, all of the amounts will be aggregated and the fee should be paid through that amount.

9- HOW SHOULD I PAY FOR THE TITLE DEED FEE IF THE CONTRACTOR MAKES OUT A MISSING INVIOCE?
Even is the contractors make out a missing invoice, the title deed fee should be paid by calculating through the actual sale price.

10- ATTENTION! DO NOT SELL YOUR REAL ESTATE WITHIN 5 YEARS, BECAUSE IT IS SUBJECT TO TAX!
If you sell your real estate within 5 years (from the date your purchased)and if the income received exceeds the exemption limit for the related year, you should file income tax return.

11- CAN I SELL MY REAL ESTATE, WHICH IS IN ANTALYA,  FROM THE DIRECTORATE OF LAND REGISTRY IN ISTANBUL?
YES, IT IS POSSIBLE.
You can do the transaction of your real estate in the Directorate of Land Registry in in the district in where you live and if you live in another city, you may go to the nearest Directorate of Land Registry. All the Directorates of Land Registries are entitled to transact on behalf of each other. Furthermore, you may do transaction in Berlin Consulate General Directorate General of Land Registry and Cadastral Representative.

12- HOW CAN I APPLY TO TITLE DEED TRANSACTIONS?
You can make an appointment by calling 181 Land Registry and Cadastral Line or with online application from (https://randevu.tkgm.gov.tr) and you can make the transactions at the specified date and time in the direction of short message service (SMS).

13- CAN MY REAL ESTATE BE SOLD SPURIOUSLY WITHOUT MY KNOWING?
you will be informed about the request of dispositionary transaction (Whether it is within the knowledge or not) by recording your mobile phone number into the system via E-State (https://www.turkiye.gov.tr).

Therefore, primarily you should get e-state password and sign in the system indicated below.

Source: Revenue Administration
Date: 26 January 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.