Calis Beach and Fethiye Turkey Discussion Forum
Calis Beach Forum => Calis Beach Questions and Information => Topic started by: babcc on March 01, 2019, 13:38:25 PM
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Hi. So this is very vague but has any new legislation come in with a deadline of the 4th of March 2019 which relates to title deeds when property sold using a Power of Attorney?
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Probably.
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Yes there is. It is about taxation. Doesnt matter if the sale is with or without power of attorney. After 4th of march, If buyer or seller is non Turkish citizen, taxations will be done according to the valuation reports of the licensed private valuation companies.
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Yes there is. It is about taxation. Doesnt matter if the sale is with or without power of attorney.
Thank you for replying. does this still apply if the sale had been started back in November, funds have been transferred, just the tapu to be done.
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Yes there is. It is about taxation. Doesnt matter if the sale is with or without power of attorney.
Thank you for replying. does this still apply if the sale had been started back in November, funds have been transferred, just the tapu to be done.
I am afraid yes.
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Yes there is. It is about taxation. Doesnt matter if the sale is with or without power of attorney.
Thank you for replying. does this still apply if the sale had been started back in November, funds have been transferred, just the tapu to be done.
I am afraid yes.
Great - more money. Do you know how it is worked out? I am quite annoyed about this because it could have been avoided but time is not on our side to get an additional piece of paperwork over.
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Great - more money. Do you know how it is worked out? I am quite annoyed about this because it could have been avoided but time is not on our side to get an additional piece of paperwork over.
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Deed office will ask valuation report when appliciation for deed transfer will be done. So valuation report must be obtained before deed transfer day. And this reports will be valid for 3 months.
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So am I right in thinking that if the valuation on the Tapu is considerably lower than the actual price paid originally and the new valuation given when selling is realistic, the vendor will be taxed on the difference? Ouch!
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Did you use an agent babscc? I believe agents have been rushing to get sales concluded before the change date, and saving their customers a heap of money.
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Did you use an agent babscc? I believe agents have been rushing to get sales concluded before the change date, and saving their customers a heap of money.
Yes and a good one. The first I knew about the change was today. Just very annoyed
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We’re not thinking of selling but Im curious to know what this means if we did sell...
So say I paid £60,000 originally for my property, I have it valued by the valuation officer and he says it is now only worth £55,000 the seller has to pay the £5000 difference in tax?
Iv probably read it totally wrong am trying to make sense of it.
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You would make a loss in that case so no tax would be paid.
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How much is this tax, does anybody know.
Sent from my iPhone using Tapatalk
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4% sales tax as far as I recall (which is different to and unrelated to any capital gains tax on profit).
The 4% is based on the value of the property - previously the deed value (around 2p ;) ) and from Monday 4% of the independent valuation (a fair amount indeed).
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You would make a loss in that case so no tax would be paid.
Not correct - sales tax has nothing to do with personal profit or loss on the property, just the value at time of sale.
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Thank you Keith I think I understand it now after reading your post, so basically if my tapu said a lesser price then the market price at the time of sale, done by one of the valuation companies I would then have to pay 4% tax on the higher value price is this sort of the gist of the new tax rule? Many thanks :)
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Yes Karen, the amount due will be 4% of their valuation. It is highly unlikely that the tapu value will be higher.
Actually, in the days where sales were booming, the sellers would insist the buyer paid the tax. It appears times have changed.
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Scunner I thought she was talking about the profit on selling. If she is talking about sales tax then there is a slight reduction as the tax would be on a lower amount, but still payable.
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No “she” wasn’t talking about any possible profit made on selling “she was merely trying to make sense of this new rule as “she” is finding it hard to understand things as she heads into old or older age ;)
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So, basically all of us who bought years ago with a different price on our tapu to which we actually paid will once again be shafted when we sell 😑
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Well not fully Anne, if you had a lower value on your Tapu when you bought it meant you paid far less than the true value, hardly being shafted.
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We had a much lower figure on our Tapu than we actually paid. I thought that was common practice and Was tax evasion by the vendor! :)
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By the purchaser
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Well not fully Anne, if you had a lower value on your Tapu when you bought it meant you paid far less than the true value, hardly being shafted.
What we paid and what is written on our tapu is world's apart Keith. So we will pay tax on a much bigger profit than we will actually make if I am understanding this correctly.
So yes, shafted again.
Just as we were with the road tax and every year when we pay our 'council tax. We pay a good percentage more than even the three beds on our site and the road tax was more than double the nearest to us. Absolutely sickens me at times how they get away with it
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So we will pay tax on a much bigger profit than we will actually make if I am understanding this correctly.
It’s nothing to do with profit (or loss) at all Anne. Just value at time of sale.
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In Oct 2017 having called into our bank we were advised the account had been temporarily closed, due to outstanding tax!! Somewhat taken aback we were told to sort it out with the tax office! Eventually we discovered that the taxman had gone back to our purchase :o(tapu 2004) which showed a discrepancy with the value quoted. The only way to re-open our bank account was to pay the fine, which we duly did keeping our receipts of payment.
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So lets say someone bought a property for £40K, 20 years ago and got the Tapu based on this figure.
Now they decide to sell their property for an agreed amount of £80K. How much tax do they pay? 4% on the sell figure of £80K?
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Yep.
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Thanks Keith. Got it now, although it is just another way for Turkey to make money as usual.
Can someone confirm if this is on top of the usual estate agents fees. If so that's quite a sum from the sale 😣
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Yes it is.
So, you'll lose 7% ( 4% tax, 3% agent's fee ) of whatever you get on the sale.
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Shame it took so long for you to get sorted KK. 4% is better in our pockets 😐
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Well, we look at it this way Anne, finally getting the house legalised cost us around £7k and it's added roughly £250k to the value, so it's worked very well in our favour in the end.
We've just got to find a prospective buyer with a set of waterwings now. ;)
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There will be no capital gains tax for the seller, if the property is bought more than 5 years ago. Doesnt matter how much it was bought for and how much it is sold for.
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I asked the question originally and then disappeared - apologies. Still awaiting what the cost is going to be but once i know will let you know. Thanks for all the responses - much appreciated
B x
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Thanks Cenk
There will be no capital gains tax for the seller, if the property is bought more than 5 years ago. Doesnt matter how much it was bought for and how much it is sold for.