1 / 10

THE LEGAL AND TAX DIMENSION OF THE ACQUISITION OF REAL PROPERTY IN TURKEY BY THE FOREIGN NATIONALS Şaban Erdikler

THE LEGAL AND TAX DIMENSION OF THE ACQUISITION OF REAL PROPERTY IN TURKEY BY THE FOREIGN NATIONALS Şaban Erdikler. ACQUISITION OF REAL PROPERTY BY FOREIGN NATIONALS - 1. ACQUISITION OF REAL PROPERTY BY FOREIGN NATIONALS (Law No. 2644 Article 35). FOREIGN NATIONALS.

remy
Télécharger la présentation

THE LEGAL AND TAX DIMENSION OF THE ACQUISITION OF REAL PROPERTY IN TURKEY BY THE FOREIGN NATIONALS Şaban Erdikler

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE LEGAL AND TAX DIMENSION OF THE ACQUISITION OF REAL PROPERTY IN TURKEY BY THE FOREIGN NATIONALSŞaban Erdikler

  2. ACQUISITION OF REAL PROPERTY BY FOREIGN NATIONALS - 1 • ACQUISITION OF REAL PROPERTY BY FOREIGN NATIONALS • (Law No. 2644 Article 35) • FOREIGN NATIONALS • REAL PERSONS WHO ARE NOT TURKISH NATIONALS • TRADE COMPANIES ESTABLISHED OUTSIDE TURKEY • (Excluding foundations, associations, public enterprises ) • CONDITIONS • Legal and actual reciprocity • Utilization of the property as work place or residence • In areas where there is an application zoning plan or location zoning plan • In areas other than the places that are determined as areas of protection by the Council of Ministers (such areas include the areas of irrigation, energy, places of protection, belief and cultural featured areas, strategic areas and prohibited areas for purposes of national security.)

  3. ACQUISITION OF REAL PROPERTY BY FOREIGN NATIONALS - 2 • REAL PERSONS WHO ARE NOT TURKISH NATIONALS • On the basis of central district or districts, up to 10% of the application zoning plan or location zoning plan (The Council of Ministers is authorized to reduce this ratio) • The total area that a real person is allowed to acquire cannot exceed 25.000 m² • TRADE COMPANIES ESTABLISHED OUTSIDE TURKEY • They may acquire real property pursuant to the following private laws: • Petroleum Law • Law Concerning the Encouragement of Tourism • Law Concerning Industrial Zones

  4. ACQUISITION OF REAL PROPERTY BY FOREIGN NATIONALS - 3 • ACQUISITION OF COMPANIES WITH JUDICIAL PERSONALITY ESTABLISHED IN TURKEY WITH THE PARTICIPATION OF FOREIGN CAPITAL • (Law Numbered 2644 article 36) • They may acquire real property to conduct the activities specified in their articles of association • In areas other than the Prohibited Military Zones, Zones of National Security and Strategic Areas • (Acquisition of real property in strategic areas are subject to permission of the Chief of General Staff, or the commanderie to be duly authorized by the Chief of General Staff) • Acquisition of real property in zones of private security are subject to the permission of the Office of the Governor) • These principles are also applicable in the following cases: • The acquisition of a new foreign partner to the company • When the sharesof a company with domestic capital are acquired by a foreign partner

  5. APPLICATION -1 • At present (03.04.2009), 74.542 foreign nationals acquire a total area of real property amounting to a total of 51.103.834 m² in Turkey (Source: TKGM) • The amount of foreign capital brought to Turkey for the acquisition of real property is as follows: • Million US $ • 2006 2.922 • 2007 2.926 • 2008 2.932 • Currently, there exists a reciprocity agreement between Turkey and the citizens of 53 countries. Turkey has not signed reciprocity agreement with 41 countries. • The conclusion of the relevant demands may sometimes take time.

  6. APPLICATION-2 • In terms of the area of land, number of real property and the number of investors, the highest number of buyers are from the EU countries. (Germany, Austria, United Kingdom, Greece, Denmark) • The number of investment in real property by the Gulf Countries, is as follows: • Number of InvestorsTotal Area(m2)Number • Bahrain 2 2.996 5 • United Arab Emirates 5 70.751 5 • Kuwait 7 13.724 12 • Saudi Arabia 23 184.977 51

  7. TAXATION - 1 • 1- TRANSACTIONS TAXES • A) Vale Added Tax Code • On Lots ……………………………………………. %18 • On Buildings • - Houses (up to 150m2’)………………………… %1 • - Bigger that 150m2 …….……………………….. %18 • - Places of Business………..…………………… %18 • (For 3 months, VAT is applied as 8% for buildings and places of business bigger than 150m2) • (there are exemptions) • B) Title Deed Charges • On purchase and sale transactions................... %1,5 • (Separately on both parties) • (for 3 months 0,5%) • On commitments for the Sale of Real Property… %0,054 • On the construction of buildings on lots…………. 100 TL

  8. TAXATION-2 • 2- WEALTH TAX • Property Tax • Over the Appraised Value • On Houses …………………%01 • On Places of Business ……%02 • On Lots ……………………..%03 • On Lands…………………… %01 • This rate is applied as twofold in metropolitan areas (such as, Istanbul, Ankara, İzmir, Antalya, Bursa, Kayseri, Adana) .

  9. TAXATION-3 • 3. INCOME TAXES • A) Rental Income • Non-resident real persons are taxed through withholding =>20% (this is final tax) • Non-resident corporations are taxed through withholding =>20% (this is final tax) • B) Gains Derived from Discharge of Real Property • Non-resident Real Persons • If the property is kept for more than 4 years : No tax • If the property is kept less than 4 years : At rates between 15-35 % • (as of01.01.2007) • Non-resident Corporations • A corporation tax of 20% and a withholding of 15% is paid over the gains, that add to a total tax burden of 32%. A reference should be made to the double tax treaties.

  10. ŞABAN ERDİKLER saban.erdikler@erdikler.com Erdikler YMM Ltd. Şti.Dr.Orhan Birman İş Merkezi Barbaros BulvarıNo:149 Kat:12 34349 Balmumcu İstanbulTürkiye Tel  : +90 212 337 00 00 Fax : +90 212 347 57 89 www.erdikler.comwww.taxand.com

More Related