Turkish Stamp Duty on Property to Increase to 4% in January
Property buyers in Turkey should bring purchasing plans forward if they want to take advantage of the current reduced stamp duty incentives that will help them save money. Introduced by the government, to encourage house sales, the incentive will finish on 31st December, and to date, there is no news of an extension. Previously, set at 4%, buyers and sellers currently enjoy a reduced rate of 3% until 1st January 2020, when the 4% rate will return and end incentives introduced in 2018.
What is Turkish Stamp Duty on Property?
By law, whenever a house sale takes place in Turkey, stamp duty is paid. On some occasions, the buyer and seller split this, although negotiations are allowed. Most times, the buyer pays the full percentage. The amount is calculated as a percentage of the selling price.
How Much Money Can Buyers Save?
All houses sales are completed in Turkish lira, but using foreign currency as an example, if the house is valued at £100,000, the buyer will save a staggering £1000, or 7460 Turkish lira at the current exchange rate. In areas, where there is a surplus of properties keeping prices down, this is a lucrative opportunity for buyers looking at a mid to long-term real estate investment.
How is the Turkish Real Estate Market Performing?
Although domestic sales have slowed down because of high-interest rates, house sales to foreigners have been a record-breaking year. The first half of 2019 showed a staggering increase year on year, with areas like Istanbul and Antalya leading the way.
The Antalya region of Mediterranean Turkey, that includes the city centre and smaller beach resorts, is proving to be an all-rounder, attracting many nationalities looking for holiday homes, permanent residences, and long-term real estate investments. While the outskirt areas of European Istanbul attract investors looking to capitalise on current development projects.
As well as reduced stamp duty, another incentive that worked in Turkey’s favour was reducing the entry-level for the citizenship by investment scheme, where house buyers can apply for citizenship upon investing in the Turkish real estate. More information on that here.
If you want to buy property in Turkey and would like to talk to a real estate agent about stamp duty and other applicable taxes, call or email using the contact details here. Our app also includes detailed information on the buying process and features a wide range of apartments and villas for sale in many areas of Turkey, including Istanbul, Antalya, Bodrum, Fethiye and more. Download it on Apple, or Google Play.