TAX AND INSURANCE

Taxes

• Personal income tax (based on rental income and capital gains)
• Inheritance and succession tax
• VAT (if a commercial transaction takes place)
• Annual Real Estate Tax (a tax similar to the Council Tax in the UK) rates for cultivated land, uncultivated (for building) land, non-residence-purpose buildings, and residential buildings are 0,1%, 0,3%, 0,2%, and 0,1%, respectively
• Real Estate Acquisition and Purchase Levy (at the time of purchase or sale)
• Stamp Duty (if a contract with a monetary clause exists)
• Environmental Tax (collected through water utility bills)
• Corporate tax (in case of a commercial transaction of a company)
• Earthquake insurance (a nationwide contribution rate is applied)

Property Insurances

Compulsory: DASK (The Turkish Catastrophic Insurance Pool- TCIP) In Turkey, Compulsory Earthquake Insurance is mandatory for all houses except for the buildings which belong to public establishments and the buildings constructed on village settlement areas.

Non-compulsory: Other property insurances cover some risks including theft, fire and flood and they can be freely bought from the market. There are no restrictions legally for foreigners to buy any insurance types.