About the objects of taxation, the taxes themselves, in any, in my opinion, country, you can write a thesis. We will try to simplify the task by understanding how we do it when meeting with clients of our company.
So, cadastral value and market value and how it reduces taxes.
When purchasing real estate, you will be faced with two different prices. This is the market and cadastral (appraised) value. When registering the transfer of ownership, a 4% percent tax on the price of the object is subject to mandatory payment. At the moment, the calculation of this tax is made by the state based on the cadastral value of the object. When making transactions between foreigners and Turkish sellers, a prerequisite is that an independent expert holds the cadastral value of the property. This conclusion has a validity period. This conclusion is prepared quickly, within a day the expert submits it to the cadastral department.
Thus, when purchasing real estate at a market price, the calculation of the cadastral value will be accepted for payment of the mandatory tax on the transaction, which significantly reduces your transaction costs.
After the transfer of ownership, the obligation to pay the annual immovable property tax is transferred to the new owner and is lower than the tax provided for on the transaction. Payment of 4% tax is provided only once.
