In the Real Estate Disposal Phase, There is not any differentiation or exception in terms of the sale of real estate to foreign citizens in the Republic of Turkey or the sale of real estate to the citizens of the Republic of Turkey. Once the answer to the question is given, it is useful to give examples of some countries where real estate can be sold, except for foreign natural individuals who are citizens of Cyprus, Israel, Cuba, Armenia and Syria. In this article, we will talk about the work and transactions that need to be done during the sale of real estate.
Revenue Tax on Disposal of Real Estate
Individuals, who make the sale pro income after the real estate disposal phase, must pay revenue tax. If the real estate has been retained for less than 5 years, then there will be an increase in value that will occur during the disposal of the real estate and this will be reflected in the revenue tax.
Value increases of real estate not acquired in return for income, acquired by inheritance or donation or after the disposal of the real estate after the acquisition period for 5 years, even if it is acquired in return for a value, are not subject to tax.
Title Deed Fee Paid during Sale
A 2% title deed fee is paid with the disposal of the real estate in the same way as it is paid during the real estate purchase process in Turkey, especially during the real estate disposal phase. This rate is applied by reducing it to 1.15 percent in business and residential workplace deliveries until 31 December 2019.
VAT in Real Estate Sale
If the person acquiring the real estate is constantly dealing with real estate buying and selling, s/he will gain a commercial profit and therefore VAT is applied to the sales price. Value added tax is not applied to real persons who have purchased the real estate for their own use and do not make commercial gains by constantly trading. If the Republic of Turkey Ministry of Treasury and Finance determines that more than one sale has been made in a calendar year or that one sale has been made in successive years, the real persons will be considered merchants and VAT will be applied to the sales to be made by the merchants.