Tapu ( the price that goes on it)

#1
I brought my house for £150.000.
£95.000 cash paid and part exchached my villa for £55.000 with no further cost
To be paid ,ie all Taxs and everything else to be paid .
As the villa was worth more than the £55.00 .
I have asked that £150.000 be put on the Tapu and I'm told
The builder may not want to want to do this.
I have said that I am in my right to ask for the price paid be put on the Tapu.
I thought the law had been changed to stop tax avoidance ?
I only wish to do what is right by Trukish tax law.
Please let me know what you think.
I'm waiting for military clearance to come back in 4 or 5 weeks time
So I think I have still time to get it right ?
 
#2
Not sure if I have posted this in the right place,our house is in Calis but I think this
Is a general topic that all will be interested in,please put in right place for me.
Thank you
 
#3
You can choose to declare it all and pay the tax bill ( at least £6200)- the builder probably doesn't want to declare a selling price for his own tax liability
Your decision will affect every future buyer as the value will only go up (officially) yearly
 
#4
I would rather pay the tax now. Should you decide to sell in the future, the difference between the price on the Tapu and any future selling price will be considered a profit. Therefore you be liable to tax on the entire difference.

Mary.
 
#5
You can choose to declare it all and pay the tax bill ( at least £6200)- the builder probably doesn't want to declare a selling price for his own tax liability
Your decision will affect every future buyer as the value will only go up (officially) yearly
Steve

What property in Turkey is going up yearly ,our one has been going down (rapidly)in the last few years

Only an emlak would say such a thing

T.
 

Freedom 49

No fun if it's too easy!
#6
Well, I'm an Emlak and have to tell people all the time that property values have NOT been increasing over the last 4 yrs or so.

I think you'll find it's the developers/builders that still insist on telling their customers that property values are still increasing.
Our customers at this time are consistently letting their properties be sold at the same price, sometimes below the price they paid for them.

If the owners have had their Tapu for 5 yrs or more, then they have no Capital Gains Tax to pay. I am aware that new buyers prefer to have the full value of what they've paid declared on their Tapu and that's their choice. However, I still think there's a lot to be said from taking guidance from the value put forward from the Belediye and then discussing it with the Tapu office manager and coming to a mid-way compromise.

At the end of the day, we are here to satisfy our customers on both sides of the sale.
 

ted j

Glad I got out
#7
So , to clarify a point, am I right in thinking that the Belediye's estimation of how much to put on the tapu , is completely legal, even though it may be less than the property is worth (buying/selling price)
 
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DAVIDO

Senior Member
#8
i think that is correct ted, in other words this is the way the council almost insist you do it , yet legal areas say this is not and the correct value should be done .
so whichever way you go in is debatable lol.:help:
 
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ted j

Glad I got out
#9
Surely then, it will be the equivalent of when I was self employed (to draw an anonalogy), If I were not to get an accountant , I would pay x amount of tax (which , in the eyes of the law would be correct

Yet if I WERE to get an accountant (which I did) , then pay the accountant to do my tax returns, he would know all the extra things I could claim for , even down to a weekly allowance of £7 for coffee/milk/sugar, as everyone is entitled to a hot drink during the day , using our kitchen as an office (got to do the phone calling and bookeeping somewhere) and a few other "perks"

THEN , I would pay less tax than before (perfectly legally) , so in those instances, both amounts of tax would be deemed to be correct for me earning exactly the same amount , just through me choosing to employ an accountant

Surely then, the same applies to council tax?
No matter what the actual price of a property is , the Belediye (accountant) sets the "tax" to be paid
I would argue that if it is legal in one case, then surely it is legal in the other , as an official government body (belediye) has , effectively, set the rate of council tax you'd pay
 
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#10
Steve

What property in Turkey is going up yearly ,our one has been going down (rapidly)in the last few years

Only an emlak would say such a thing

T.
Hi Thingthong

the key word was officially
the council never bring down a valuation from the one declared on the tapu
its almost index linked

please read before insulting.....................
 
#11
I brought my house for £150.000.
£95.000 cash paid and part exchached my villa for £55.000 with no further cost
To be paid ,ie all Taxs and everything else to be paid .
As the villa was worth more than the £55.00 .
I have asked that £150.000 be put on the Tapu and I'm told
The builder may not want to want to do this.
I have said that I am in my right to ask for the price paid be put on the Tapu.
I thought the law had been changed to stop tax avoidance ?
I only wish to do what is right by Trukish tax law.
Please let me know what you think.
I'm waiting for military clearance to come back in 4 or 5 weeks time
So I think I have still time to get it right ?
Hi Savoyboy - Deciding whether to stick to your guns & do things strictly Legally (although it seems this is still not implemented locally!) depends whether or not you intend or, may need, to sell within the next 5 years, within this period you will be liable for CGT.

If you go with lawyer/builder/council advice on how much is declarable, just make sure you only pay your part of the tax on the amount that is actually declared!

Too many cases of people finding out, somewhere down the line, that they had been conned into paying tax on the 'Sale' price, not on the value declared on the Tapu ..... Another, very nice little earner :(

Good luck :)
 

Tommie

Sun Worshipper
#12
I can't believe for one moment that it's up to the council to decide what value goes on the tapu, as their tax income is calculated on the tapu value. At least it does in Didim. I'm not sure about other authorities.

If only a 3rd of the purchase value goes on the tapu, then the belediye only get 1/3rd of the council tax that they should get.
 
#13
I also want to add that it is not because you buy a house for a certain price that that is also the "value" of the property ! You know that a lot of foreigners have bought houses for prices that were considerably higher that what a Turk would pay for it.

Stick with the advice of Freedom and at the Tapu office they will say how much to put on the Tapu so you wouldn't risk a tax evasion fine.

Good luck.
 

Tommie

Sun Worshipper
#14
In our block we have duplexes and singles.

The tapu values for both are the same.

I suspect either dishonesty on part of the developer or collusion between the developer and belediye.
 

jearden

Senior Member
#15
Let’s be clear, it has nothing to do with property value, it’s a tax on the sales transfer price. If you declare less than the sales price it's tax evasion for which there are penalties in law.
For Turks it’s a long standing custom and practice to under declare and provided there's no paper trail then who's to know. The Belediye minimum valuation is there to make sure tax evaders don't make a complete mockery of the system by declaring peanuts.
 
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Lez Zetli

Bacon and eggs
#16
Oh dear. So much wrong advice in this thread.
It is not up to the belediye how much you declare. They have a value for your house which is rather like the banding system in the UK for council tax appraisal which has no relation to the actual amount that you bought it for.

The correct way is to declare the actual amount that you bought or sold it for. However, local practice is that nobody wants to pay this amount so purchaser and seller decide an amount between them. So they agree on an amount that is the belediye's "valuation" as anything less will attract attention.

If you sell within 5 years of purchase you have to pay capital gains tax if your selling price is higher than your declared buying price. So local practice is to declare a low value as when you purchased it otherwise you'll get stung.

If you try to "do the right thing" and declare the actual purchase / selling price you may find that your Turkish buyer / seller will resist, as the transfer tax for him will be higher than he expects. To get round this be prepared to pay his transfer tax as well as your own!
 

qwerty

Senior Member
#18
The Istanbul council have recently hired 20,000 property tax accountant specialists.

We live in a new build, we bought from the builder, as did everyone in the building.
The builder decided to sell to us at a lower price than he had been offered because we were cash buyers. The other offer would have been with a mortgage.
The 'price' of our duplex on the Tapu is a lot less than we paid the builder. He had to pay tax on the 'value' of the duplex (the price on the tapu). this will have been the same for all the apartments in the building.

We want to sell our flat. If someone wants to buy it, but needs to do so with a mortgage (which is more than the 'value' on the Tapu), the Tapu office will re-value all the other apartments in the building (based on the mortgage) and will send a tax bill to EVERY apartment in the building.
So, we have to make sure that we sell to a cash buyer, or someone who needs a small mortgage, so that tax bills don't go flying about.

This is a new build, and we are the first people to sell on. Nobody in our building knows this, and neither did we until we spoke to an accountant.

Be very careful if you live in a new build and someone sells before you do. If their buyer needs a mortgage, you may get a tax bill through your door.

Apparently, according to the accountant, this is being taken VERY seriously, and the tax WILL be collected. That's why they've employed 20,000 property tax specialists to close any loopholes and chase up on the tax of the 'values'.

It may be some time before this affects other parts of the country - who knows?
 
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Akasya

Postless Pointer
#19
20,000 new property tax specialists employed in Istanbul alone , i politely ask are you sure ?

The Inland Revenue staffing for the whole of the UK is only a purported 55,000.

Steve.
 
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