Hello everyone, unfortunately in the new year 2020, VAT and Title Deed Fees will be increased. Whilst buying a new property, main costs that are effecting your budget are Value Added Tax – VAT and Title deed fee. In 2019 there has been a decrease for these costs but in the new year unless it is not extended, the increase in these costs will also effect the last price for the properties as well.
As you may have known already, VAT taxes for properties are applied as 1%, 8% or 18%. Until 2020 the value added tax for properties that has greater size than 150 m2 shall be reduced to 8% instead of 18%. Hence there isn’t any renewal for this regulation, VAT rate for the new purchases will be calculated on 18% in 2020.
On other hand, for the title deed fees, it was reduced to 3% until end of 2019. In the new year it will be increased back to 4%.
There was huge demand until latest working hours of 2019 at the governmental directorates for benefiting from the reduced title deed transfer fee.
For further information about cost estimation for purchasing property, you can check our guide here.
Also in the new year, title deed fees will be based on the expertise values instead of market value that is defined by relevant municipalities.
Check out our blog for more useful information and also feel free to contact us through our contact page or via phone & email.
As Estist – Estate Istanbul we provide you detailed service and information about all phases of property purchase.
