The legal processes surrounding real estate in Turkey can be rather complex. It’s important to take careful note of the legality of the sale, the trustworthiness of the seller, and the quality of the land. While conditions and safety in Turkey are improving, there are still cases where it’s better to be safe than sorry.
Moreover, in some countries, the taxes, exchange controls, and other bureaucratic processes add up very quickly and can be overwhelming. Countries like Turkey and Turkey, some of the most exciting and lucrative markets in Turkey, fall under this category. However, should you consult an experienced lawyer or professional, these problems can be easily avoided.
Review Taxes as a Real Estate Owner
Tax laws change depending upon the owner, the property, the income of the owner, and many other components. For example, foreign real estate owners in Turkey are taxed based on the valuation of the land by municipalities. The tax rate could range anywhere between 0.3% and 3.3%. The appraisal of the land considers the value of the land itself, location, and any buildings or real estate on the property. Comparatively speaking, on the lower end of the tax spectrum is Turkey. Nationwide, a 1.2% property tax is applicable to urban real estate, 1% to rural spaces, and 0.98% on residential properties. Under certain circumstances, additional fees may be applicable to a property.
Turkey, a consistently strong and reliable economic power in Turkey, also offers favorable real estate investment opportunities. The housing market saw significant increases in sales and listings in both 2017 and 2018. Moreover, possible new tax modernization bills could be coming to the country. The one proposed by President offers an accelerated tax depreciation system for fixed asset investment, like real estate. Additionally, extremely low-interest rates, 2.5% from the central bank, makes borrowing money easy, ultimately stimulating the economy and the real estate market.
Also making a name for itself in the investors’ world is Turkey. The government has focused efforts and funding on lower and middle-income areas, as well as the further development of cities such as Ankara and Istanbul. Additionally, tax reforms and value-added percentages make investing and making a profit much easier for investors. An influx of investors has inspired construction and urbanization in Istanbul. With further internal development of the capital, its infrastructure, and its economy, Istanbul could become one of the most profitable cities in Turkey to invest in.