- Due diligence costs for the purchase of real estate
- Costs associated with a contract for purchase of real estate and registering title
- Tax or duty on the acquisition of shares in a company owning real estate
- Capital gain taxation on future disposal of real estate or shares in a company owning real estate
jurisdiction
1. Due diligence costs for the purchase of real estate
1.1 Municipal search
Cost
Free of charge (to verify payment of real estate taxes and identify current value). Variable depending on the municipality (for zoning status search).
VAT
Nil
1.2 Utility search (each service)
Cost
Negotiable
VAT
Nil
1.3 Land registry search (per search)
VAT
Nil
1.4 Company search, per company
VAT
Nil
1.5 Survey/Valuation fee, approx
VAT
18%
1.6 Phase 1 Environmental survey
VAT
18%
Land Registry Registration Fees
Notary Fees
VAT
Nil
Legal Fees
VAT
18%**
**Legal services rendered to Turkish parties are also subject to withholding tax at the rate of 20%.
2. Costs associated with a contract for purchase of real estate and registering title
2.1 VAT on price
Cost
4% of the purchase price declared to the land registry (payable by each of the seller and the purchaser equally).
VAT
- 18% if net area is larger than 150 m2/1% to 18% if net area is smaller than 150 m2 (depending on the location of the property value of the land per m2)
- 18%
2.2 Transfer duty
3. Tax or duty on the acquisition of shares in a company owning real estate
No transfer duty and transfer tax, stamp duty at the rate of 0.948% of the highest amount under the share purchase agreement (capped at approx. EUR 496,000 as of 14 January 2020.)
4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate
4.1 Tax on capital gains on the disposal of the real estate itself
Individuals: Income tax at the rate of from 15% to 40% depending on the amount gained. No taxation if the individual owned the real estate for more than five years.
Legal Entities: Corporate tax at the rate of 20%. In general, 75% of the capital gain is deductible from corporate tax if the entity owned the real estate for more than two years. Certain companies (e.g. financial leasing companies, asset management companies) may fully deduct without the need to hold the real estate in their assets for two years if certain conditions are met.
4.2 Tax on capital gains on the disposal of shares in a company owning real estate
Individuals: Income tax at the rate of from 15% to 40% depending on the amount gained. No taxation if the individual owned the shares (except partnership shares) for more than two years. Legal Entities: Corporate tax at the rate of 20%. 75% of the capital gain is deductible from corporate tax if the entity owned the shares for more than two years.
