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May 26, 2012
 
 
 
 
 
 
Columnists 06 September 2010, Monday 1 0 0 0
BERK ÇEKTİR
b.cektir@todayszaman.com

Municipal tax on Turkish property

Before going into the subject matter at hand, I should talk about Ramadan since all the other columnists have something to say about it regardless of whether their topics are relevant or irrelevant to this holy month and its social aspects.
Speaking to a friend who is involved in criminology and forensic science, I learned that the level of crime goes down during Ramadan as compared to the other months of the year. I am not sure whether this information is correct, but what I know is this: This has been a well-accepted generalization by practicing law enforcement officials and police officers for years now. Before I see this study as “news” in Today’s Zaman, I would like to suggest to any statisticians reading this that they make a comparison of the level of crime committed during Ramadan with that at other times of the year. Does it go down as compared to other periods? The researcher should probably not limit his study to Turkey or Muslim countries but could expand his research to include non-Muslim countries. A decrease in the level of crime at this time may of year be considered normal in a Muslim country, and although criminals may be “true believers”of Islam, it may not be their religious convictions that stop them from committing crimes, but rather an overall social consensus and agreement during this holy month.

“Dear Berk,

I found your excellent column while searching for information on taxes payable in Turkey for property purchases. Could you tell me if the below bill I received on completion is correct? How is municipality tax different from purchase tax? Should it be payable in the first year?

Kind regards,

Mahesh”

Dear Mahesh, I take the word “excellent” as a compliment, anyway, many thanks for this. Driven by this motivation, I have made a comprehensive search for information on this matter. I hope that the following information is satisfactory enough; the information provided in your e-mail was quite brief.

1. According to current regulations, property purchases are subject to a purchase tax rate of 3.3 percent, over the purchase value. (Theoretically, the payment of 1.65 percent of said tax rate falls on the purchaser, whereas the remaining 1.65 percent falls on the seller; however, in practice, the purchase tax is generally paid wholly by the purchaser.) Please note that the purchase tax should be based on the declared value of the property. Please also be advised that the rate can vary according to the year in which the purchase took place. For instance, in the year 2009, the purchase tax rate was 3 percent of the purchase value.

As per the information provided in your e-mail, the purchase tax “to be paid by the buyer [is] 1.5 percent.” Presumably, this transaction took place before 2010. Therefore, considering that the sales price is TL 118,150, as mentioned in your e-mail, the purchase tax can be calculated as TL 1,772, in proportion to such a rate.

The second part of this article will be published on Wednesday, if not earlier or later due to Eid Mubarak.


NOTE: Berk Çektir is a licensed attorney at law and available to answer questions on the legal aspects of living in Turkey. Send enquiries to b.cektir@todayszaman.com The names of the readers are disclosed only upon written approval of the sender.

DISCLAIMER: The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this column.

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