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The fiscal aspects of a second home in Turkey

The fiscal aspects of a second home in Turkey

(Fiscal) costs when purchasing a home:
•                   4% registration rights on the Tapu value
•                   +/-1800 euros of operational expenses (similar to our notary expenses)

(these expenses include: costs for proxies, sworn translator, translation of legal documents, preparation of the file at the Tapu office, research work, request of military approval if necessary, costs for adjusting the contracts for water and electricity, taking out a compulsory DASK insurance … Once you as a buyer have granted a mandate to a proxy (which can be easily done at the Turkish consulate in Belgium) everything is done for you on your behalf by your representative.)

(fiscal) annually recurring expenses when owning a property in Turkey – in Turkey and Belgium

Property tax:

This amounts to up to 65 euros per year for a 2-bedroom apartment, to be paid in the town or city where your property is located.
In Turkey you will have to pay capital gains tax if you make a profit when selling your house within 5 years of purchasing it. In principle this tax is levied on the indexed difference between the selling price and the purchase price.

Furthermore, every Belgian living in Belgium is obliged to declare the value of his or her property purchase in Turkey to the Belgian tax authorities via the Belgian annual tax return. Since 2 June 1987 however, Belgium has had a double tax treaty with Turkey. Thanks to this treaty a double taxation is avoided. This means that Belgian people who own a home have to declare it to the Belgian tax authorities, but can immediately request a tax exemption in accordance with the treaty.

Thanks to the double tax treaty rental income from Turkish properties is not taxed, but is taken into account in order to determine the Belgian personal income tax. This is called the ‘progressivity principle’.

Are there local differences regarding costs and taxability?
To my knowledge there are no such differences. For the time being I do not work in the region of Istanbul yet, and I suspect that other rules and costs apply there. But the costs described above (4% registration rights etc.) are valid in the whole country.

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