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In a statement Turkey iResidence, to correspondents AA, “A new era has begun in the deed. Explained by GIB. It concerns everyone who is going to sell the house, buy a new house or own a property in Turkey through inheritance. The most curious questions have found the answer.” was said.

The Turkiye Revenue Administration has prepared a brochure on how taxation is done in the purchase and sale of housing. Accordingly, those who make false statements face high penalties. There is also a tax on the gain on the increase in value in real estate.

Turkey iResidence, “So how is the calculation done? When does the value increase gain occur if it is sold? How much tax penalty is incurred for low declaration? Is it possible to take advantage of regret? Here are the 10 questions and answers that are being asked in Turkish ‘tapu’…” was said.

1- How does the value increase gain occur?

If real estate such as land and buildings are disposed of within 5 years, the gains above the initial price received are taxed as an increase in value gain.

2- Is the gain from the sale of real estate owned by inheritance or free of charge an increase in value gain?
If the goods and rights have been acquired free of charge, the gains arising from the disposal of these goods and rights will not be taxed as gains on increase in value.

3- Is the gain from the sale of the apartment made within the scope of private construction on the owned land or the equivalent of an increase in value gain?

The registration of the real estate acquired as a result of the construction of a building on the real estate acquired as a plot or the provision of the decile of the real estate in question to the title deed is considered to be a correction of the type and the date of registration in the title deed is considered as the date of acquisition. In this case, if the real estate is disposed of within 5 years from the date of registration with the land registry, the profit obtained is taxed within the scope of the increase in value gain.

4- How much is the annual exception amount for the value increase gain?

the value increase gain exception amount related to the gains from the disposal of sold real estate in 2023 is 55 thousand liras. the amount of exception to be applied for those in 2024 will increase to 87 thousand liras.

5- Should a declaration be made in case of the disposal of personal real estate?

In case of disposal of real estate such as housing and land within 5 years from the date of purchase, if the profit received is below the exception amount determined for the year of sale, decontamination of income tax will not be filed. If income is received in an amount exceeding the exclusion limit, an annual income tax return will be filed and the exception amount will be deducted from the declared income. The calculation will be made by taking into account the number of days in the calculation of the five-year period.

6- How is the net gain found in value increase earnings?

The gain to be taxed on the gain of increase in value is called ‘increase in net value’. Net gain in value increase is found by deducting the cost of the disposed goods from the money received in exchange for disposal, the expenses incurred due to disposal and remaining on the seller, as well as taxes and fees paid.

7- How is indexing done for value increase gain?

How much the property gains in value when it is disposed of determines it according to inflation. Accordingly, the difference between the first day of purchase, excluding the month disposed of, is determined by increasing the Domestic Producer Price Ind Turkish ex (DPI) determined by the Turkish Statistical Institute (TURKSTAT) at the decrement rate. According to this account, if profit is generated above the exception amount, tax will be paid. Tax will be applied to this amount according to income tax decrees (between 15-40 percent).

8- At what price and at what rate is the title deed fee paid?

When purchasing real estate, the land registry fee is charged separately from the buyer and seller at a rate of 20 per thousand over the declared sale price.

9- What happens if the purchase and sale price is not reported from the actual amount?

Pays paid fees If it is determined that the transfer and acquisition price declared in the real estate transfers and acquisitions made in the title deed does not reflect the actual situation or that fees are paid on a price lower than the property tax value, the fee will be taken from the buyer and seller with a penalty of 25 percent tax loss.

10- Can a notification requesting regret be made in the title deed fee?

If the purchase and sale price of a real estate is declared as 2 million liras in the deed, and the actual sale is made over 3 million liras, a penalty charge is made over the difference of 1 million liras, a total of 50 thousand liras, 25 thousand liras each, are collected from the buyer and seller.

If the taxpayers who caused the loss of fees by not charging and accruing on time or by declaring the basic cost incomplete on the account of the land registry fee report this situation to the relevant tax office on their own, it is possible for these taxpayers to benefit from the regret provisions.