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Let us support you with your Legal Consulatancy Issues in Turkey.
Consultancy in Preparing Purchasing Contracts
As per Private Laws in Turkey, a buyer or seller has the right to obtain legal advice from a lawyer while signing contracts.
We at Ideal Estates are happy to arrange this service for you. Our consulatancy professionals will introduce you to reputable, trustworthy lawyers with invaluable experience in this field.
You are, of course, free to seek advice from a lawyer of your choice for consultancy.
Fraud
To report fraud or fraudulent activity, you should seek legal advice from a lawyer. Generally, such complaints are reported to the local Prosecutor.
Preparing a Testament for Inheritance
To emphasize, Turkey is a prevalent business and holiday destination for people worldwide. Buying real estate in Turkey became relatively easy after new property laws were passed in 2003, which increased the number of foreign buyers who own real estate in Turkey. Our Consulatncy services guide you through every step.
In brief this reality raises the question: “how should overseas investors prepare a testament or deposition of properties in Turkey per Turkish Law”?
Indeed the testament allows you to control what happens to your properties after your death. For your testament to be issued and executed correctly, your testament must be in Turkish and prepared as per Turkish Laws and Regulations.
For Further information in this situation don’t hesitate to contact our Consultancy Lawyer.
There are two ways to prepare your testaments for foreign persons living in Turkey;
- Handwritten
- Court of Notary Issued
How to issue a Handwritten Testament?
- It should state in the title that this letter has been written as a testament.
- You have to indicate that you are physically and mentally healthy at the time of issuing the testatement.
- Make a list of your immovable properties, which will be the subject of the testament.
- Make a list of your successors.
- It must be indicated who will inherit what kind of property and the percentages of that property they will inherit.
- It should contain the date and hour.
- You should sign your testament letter.
- The letter must be delivered to a Turkish Notary or Turkish Court to be opened after the person’s death.
Attention: Please be mindful that only handwritten testaments will be deemed valid and accepted by the administration of the testatement. Any contents typed by computer and printed or written on a typewriter will be rejected by the administration of the Estate. The person who delivers the testament to a court or a notary may also renounce it partly or entirely at any time. Please contact our Consultancy Professionals for futher information.
Issuing a Testament before a Turkish Court or Notary?
Attesting before the court and notary formalizes testaments. A Testament before the court is the safest way for execution after passing away. For foreigners residing in Turkey, completing this process is possible if the testator appears before a court or a notary with two of their witnesses.
Foreign testators in Turkey should know that the state will claim properties without a successor. To complete these processes safely and soundly, always seek professional help from lawyers.
Preparation of Wills and the transfer of property to heirs
Wills prepared by foreign nationals in their own countries can be executed in Turkey to transfer property ownership to the individual(s) stated within the Will.
To carry out the property transfer according to a Will, an heir has to gather a court letter confirming the Will from the relevant Court of their own country and have it ratified at the Turkish Consulate General. Then they have to submit that letter to the relevant Court of the province in Turkey where the property is located. Then, the Turkish Court issues an official document that allows the transfer.
Finally, the heir presents the document granted by the Court to the Tapu (Land Registry) Office and other documents required for the transfer of ownership.
Please note that the transfer of property ownership to an heir is subject to inheritance tax. Thus, if the heir sells his inherited property, he is not subject to any personal income tax based on capital gains.
Inheritance
In Turkey, you have the right to inherit a person’s earnings, property, rights, and debts accumulated during their lifetime, like every other person in the country. Both men and women have equal inheritance rights, and if you are in Turkey under another status, International Law will be taken into consideration for matters related to inheritance. If you inherit real estate property in Turkey, provisions will apply concerning the acquisition of the property by foreigners in the country. You can seek the advice of a legal advisor or lawyer for further information on inheritance law.
The rights of inheritors in Turkey are protected on real estate acquired by foreign investors. Real estate may be inherited by foreign natural persons, but if it is inherited by a citizen of a country that is not on the list of specified countries, they will not be eligible to acquire the property in Turkey. The real estate must be sold or disposed of after the transfer, or it will be confiscated.
The Ministry of Treasury and Finance gives the real estate owner one year to sell or dispose of the property. If the owner fails to do so within this time period, the Ministry will acquire the property, an appropriate amount will be appraised, and that amount will be paid to the right holder.
For further information, please get in touch with our Lawyer
Funeral Procedures
Death is a painful but inevitable conclusion. The final duty of those left behind by the deceased is to facilitate the deceased last journey to the afterlife. In this case, applications to correct organizations for assistance will make the procedures easier for people in pain and sorrow. There are specific legal procedures to follow in case of death.
Procedures are listed below respectively:
- Obtaining a death certificate and a burial permit,
- Preparing the corpse for burial,
- Reporting the death to the civil registry office.
Municipalities are responsible for funeral procedures in Turkey. Therefore, funeral procedures are carried out after applying to the municipality of the deceased’s residence. Municipalities provide funeral services 24 hours a day.
- Deaths should be reported to the civil registry office within 10 days.
- This is done by the department that issues the burial permit.
Foreigners are also obliged to notify deaths to Provincial Directorates of Migration Management.
Funeral Services 188 HOTLINE
Several cities, including metropolitan municipalities, operate the 188 hotlines for Funeral Services. When you have a relative who has passed away, you can call the 188 hotlines first to get detailed information about what to do.
If such a service is unavailable, you can apply directly to the funeral services division of the municipality.The procedures applicable to the death of Turkish citizens also apply to the death of foreign nationals in Turkey. However, if a deceased foreign national in Turkey is non-Muslim, funeral ceremonies are carried out by a cleric of the religion to which the deceased belonged.
Other procedures are the responsibility of the municipality. The deceased is buried in special cemeteries reserved for adherents of other religions in the burial area, or a separate place may be secured in an appropriate part of the communal cemetery if such a cemetery is not present. Municipalities do not claim any charge other than a “cemetery utilization fee” for funeral procedures.
However, funeral procedures for the poor and kinless are free of charge.
Our realtors act in your best interest to protect the property, keep it occupied, collect payments, make budget improvements, and keep records. When negotiating on your behalf, our professionals are versatile and results-oriented, with extensive experience in real estate, including retail property asset and portfolio management. IDEAL Estates has created a business model focusing on customer satisfaction to create a long-term sustainable relationship with our clients. Our management board has a collaborative approach with the ability to develop a team-focused environment while teaching our real estate agents how to achieve results in your best interest. Our real estate agents demonstrate excellent customer service, business insight, and strategic planning. They also use various property sales techniques, including qualification, persuasion, strategy, bidding, and closing. They have solid communication and interpersonal skills to build and maintain relationships with clients, staff, and working partners.
TAXES AND INSURANCE CONSULTANCY
Basic property-related taxes
Concerning real estate in Turkey, the following taxes and insurance are compulsory:
- Real Estate Acquisition and Purchase Tax (at the time of purchase or sale)
- Earthquake insurance (a nationwide contribution rate is applied)
- Property tax
- Personal income tax (based on rental income and capital gains)
- Inheritance and Succession tax
- VAT (if a commercial delivery takes place)
- Corporate tax (for company business transactions)
More information about the Turkish Revenue Administration of taxation can be found in the booklet prepared by the Presidency of Turkey.
Real Estate Sale and Acquisition Levy
Each buyer and seller has to pay a real estate sale-and-acquisition levy of 2% based on the declared value of the asset (This value cannot be less than the threshold determined by authorities). It has to be paid before the transfer of ownership at the TAPU office.
Earthquake Insurance
Property has to be insured by the owner against earthquake risks. It is compulsory, and a national uniform tariff is applied. Other property insurance types are available, and they cover risks, including theft, fire, etc. For further information, please visit our insurance page.
Real Estate Tax Consultancy
Once we have registered the property under your name at the municipality, a yearly property tax must be paid. The tax is calculated based on the asset’s declared value, which cannot be less than the threshold determined by tax authorities.
Tax payments are made in two equal instalments in March-to-May and November each year to the local governments (municipality). The tax base is updated annually by a coefficient determined by the Ministry of Finance, adjusted to the inflation rate.
The seller pays the property’s real estate tax in the year of acquisition, whereas the consecutive years’ taxes are paid by the buyer (new owner).
You should contact your local council (Municipality) for more information and payment options. The tax is calculated based on the value of the property and is subject to thresholds set by the tax authorities as follows:
For real estate located outside of a metropolitan municipality:
Residences, Apartments 0.1%
Commercial Buildings 0.2%
Plots (Construction Purpose) 0.3%
Agricultural Land 0.1%
For real estate located inside of a metropolitan municipality:
Residences, Apartments 0.2%
Commercial Buildings 0.4%
Plots (Construction Purpose) 0.6%
Lands 0.2%
Personal Income and Capital Gains tax Consultancy:
What earnings are gained through property investment? Are those gains taxable?
There is no difference between foreign nationals and Turkish citizens in terms of taxes or fees. Tax rates are updated periodically. A real estate property may enable an individual to obtain two types of gains.
Firstly, you can rent it out and earn rental income. In that case, you need to pay a personal income tax. If you rent your property to a person or company, you must submit a tax return to the nearest tax office for your rental income for the previous calendar year from 1 to 25 March. Taxes are paid in two equal instalments, the first in March and the second in July.
Secondly, the market value of your asset may rise, and hence you can attain a capital gain. If you sell your property within five years following the acquisition date, you will be subject to a capital gains tax based on the difference between the selling price and the inflation- adjusted acquisition price. No capital gains tax applies for sales by individuals after 5-years following the purchase.
Inheritance and Succession Tax:
Turkish citizens and foreigners who inherit property held in Turkey must pay inheritance and transfer taxes. A taxpayer is a person who acquires property through inheritance or is gifted the property free of charge.
Inheritance and gift taxes are calculated on the return submitted by the taxpayer.
In the case of inheritance, you must submit the declaration within four months from the date of death. When a death occurs and the taxpayer is outside Turkey, the return period extends to six months. Declaration time, not pertaining to death, will still be four months if the taxpayer is not in Turkey. However, the declaration period is extended to eight months when the death occurs in a foreign country and the tax payer is in another country.
For transfers made free of charge as a gift, the declaration must be submitted within one month from the date of acquisition of the property.
The tax base is updated annually—some discounts for an inheritance to daughters, sons, and spouses are applied.
Please note that the transfer of property ownership to an heir is subject to inheritance tax. Thus, if the heir sells his inherited property, he is not subject to any personal income tax based on capital gains.
Corporate Tax:
A company based in Turkey must pay corporate tax calculated on its business transactions.
Corporations with legal or business centres in Turkey are qualified as residents, and taxation on their income in Turkey applies. Suppose both the legal and business centres are not located in Turkey. In that case, these corporations are qualified as non-residents and subjected to taxation only on their income derived in Turkey.
Corporate Tax Rate: In Turkey, the corporate tax rate levied on business profits is 20%. The corporate tax rate has increased to 22% for the tax periods 2018, 2019, and 2020. However, the President is authorized to reduce the 22% rate to 20%).
VAT Tax
In Turkey, deliveries of goods and services are subject to Value-Added Tax (VAT). The importation of such goods and services is also subject to VAT tax.
Liability for VAT arises when: A person or entity performs commercial, industrial, agricultural, or independent professional activities within Turkey.
VAT tax rates vary from 1% to 18%. The general rate is 18%.
The commercial sale of residential property with a net area of up to 150 m2 is subject to a VAT of 1%. Comparatively, commercial property sales with more than 150 m2 are subject to a VAT of 18%.
