Government Reduced Both Title Deed Costs and Legal Rate of VAT!
According to Turkish Real Property Law, it was an obligation to pay title deed costs as 4% of the sale price of property bought. Also, the sale price was determined involving the VAT percentage as 18% for 150+ square meter houses. These two obligations are now changed by the government in order to meet the gap between supply and demand in real estate sector.
By the decree of council of ministers, some changes in law has been made involving alcohol taxes, properties taxes and other regulations related to women employment etc. In this manner, new VAT percentages and other tax implements are revealed in Turkey. The biggest changes in real estate sector with this decree is that title deed cost is reduced from 4% to 3% and VAT percentage for 150+ sqm houses is reduced from 18% to 8%.
These changes in properties law are valid until October 31, 2018 in order to boost the sector during and after elections planned to be made in June.