Tillyfloss

Tillyfloss
Declared Price on Title Deed
Is it normal for the purchase price declared on your Title Deed to be significantly lower than the purchase price in your contract - in our case £20K approx. Our lawyers have explained this difference by stating the developers deduct real estate agency fees, air conditioners and some building expenses from the contract price to arrive at the price on the Title Deed. I am totally new to all this but even so, I am suspicious that all is not above board, and if I am right what can I do about it. Tilly
 

traveller

Member
Declared Price on Title Deed
Hi Tillyfloss, this is an ongoing subject of much debate on this forum. Just check out a few more posts. Basically it should have the full price that you paid in turkish lira on your tapu, if it doesn't then you are right in thinking it's dodgy. If you have only just received your tapu you can go and declare the correct value yourself, I take it you have some proof of the actual amount you paid? (your seller will not be very pleased though as they obviously didn't want to pay the full tax on the sale). I would suggest that you pick a new lawyer, anyone prepared to pay £20K for air cons and estate agency fees must be daft! The estate agency fee's are 3% of the purchase price and air cons about 500 turkish lira apiece. I do hope you get it sorted before it becomes a bigger problem. As I said read everything you can find on here re: tapus and tax. Call me cynical but unfortunately too many people have been duped in this way.

Last thought - I do hope you enjoy your time in Turkey, it is a lovely country and there are alot of nice people.
 

juco

Member
Declared Price on Title Deed
It is apparently illegal to under declare, it just confirms to me that the lawyers over there cannot be trusted.
 

carolk

R.I.P
Declared Price on Title Deed
Hi Tillyfloss, this is an ongoing subject of much debate on this forum. Just check out a few more posts. Basically it should have the full price that you paid in turkish lira on your tapu, if it doesn't then you are right in thinking it's dodgy. If you have only just received your tapu you can go and declare the correct value yourself, I take it you have some proof of the actual amount you paid? (your seller will not be very pleased though as they obviously didn't want to pay the full tax on the sale). I would suggest that you pick a new lawyer, anyone prepared to pay £20K for air cons and estate agency fees must be daft! The estate agency fee's are 3% of the purchase price and air cons about 500 turkish lira apiece. I do hope you get it sorted before it becomes a bigger problem. As I said read everything you can find on here re: tapus and tax. Call me cynical but unfortunately too many people have been duped in this way.

Last thought - I do hope you enjoy your time in Turkey, it is a lovely country and there are alot of nice people.

Traveller, just who is it that saves in the first instance by the under-declaration of tapu's. Is it the seller only?
 
Declared Price on Title Deed
The primary reason for understating the value is to understate the quantum on which tax would be payable. This is quite illegal but some people will tell you it is the "norm".

Turkey is a member of the OECD and as such its tax authorrities have access to other tax authorities across the world and their methods of checking on the activities of taxpayers both individual and corporate. They are wise to the antics of emlak and lawyers and check on websites to see what the going rate is for given types of properties. It is therefore extremely short-sighted in the current credit crisis for this practice of understating property values for tax purposes. With falling revenues from other taxes Turkish tax authorities will start to come down hard on those businesses that try to understate values to avoid tax. This is a criminal activity and can be severely punished - caveat emptor as they say!

In view of this it would be wise to put the purchase figure as paid. We were duped this way and when we actually acquired our tapu via setting up our own Turkish company our accountant advised us to increase the value at the tax offfice to reflect the actual value. This meant of course that the original vendor wwho's heeld the tapu had eventually to pay the correct amount of tax and we had to pay higher capital transfer tax - but this was a reasonable price to pay for relative peace of mind.

Hope this helps you and others "do the right thing". (This has been advised by my husband who is a tax specialist in the UK).
 

traveller

Member
Declared Price on Title Deed
Traveller, just who is it that saves in the first instance by the under-declaration of tapu's. Is it the seller only?

In our case, we gave our agent the money to pay one & half % of the GBP purchase price but our tapu value is about a third of that, so we probably paid all 3% on the TL value and they split the extra or our agent pocketed the rest. We were so overjoyed to actually get a tapu that we didn't even think about a receipt for our money. But I take your point, yes we do pay less annual tax as a result.
 

carolk

R.I.P
Declared Price on Title Deed
Traveller, no I didn't mean that, Lol, that was a genuine question. I cant stop laughing, I thought you knew the answer. Lol, Lol.

I meant who really benefts from this in the first instance - the tax dodge?

Why do they do it?
 
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traveller

Member
Declared Price on Title Deed
CarolK, I've PM'd you but for the benfit of anyone else, No I don't know the answer, but I would think that most foriegn buyers are asked to pay the full amount of tax on the GBP/Euro purchase price, but what actually ends up being paid to the tax man is based on the tapu value, so someone gets to keep the difference - and it weren't me! So the seller either pays less or pays nothing if the buyer pays all 3% and he or the agent gets a nice little bonus. The only benefit the buyer gets is lower annual council tax and a headache from worring about it all. Glo
 

maggie

Member
Declared Price on Title Deed
So what we are saying here it is ILLEGAL to not have the price paid for ones property on ones tapu.!!!!!!

If the price on the tapu is lower than the price paid for ones property what can a person do about this.????

So from what I can understand here when you come to sell your property at obviously a higher price than what is declared on the tapu your liable for a whole lot of tax.RIGHT OR WRONG???????

Hugs Maggie xxxx
 
Declared Price on Title Deed
So what we are saying here it is ILLEGAL to not have the price paid for ones property on ones tapu.!!!!!!

If the price on the tapu is lower than the price paid for ones property what can a person do about this.????

So from what I can understand here when you come to sell your property at obviously a higher price than what is declared on the tapu your liable for a whole lot of tax.RIGHT OR WRONG???????

Hugs Maggie xxxx
Hi Maggie
Read all the threads(At least 3 at present!!)
There are so many moral issues where
some want to be honest,
some confirm its illegal,
Some confirm it wasnt until recently as it was a council valuation on the Tapu,
some dont give a damn as they acted in good faith,
some say only 5 years to go when it doesnt matter,
some say there are thousands who arent on this forum so are totally unaware of the problem,
Some say tax evasion is a "national sport" so leave it be,
And most say the majority of Turkish authority couldnt organise a p***up in a brewery where property purchase is involved and they just werent ready for us lot!!

We are forgetting about it as we have owned it 3 years already and by the time they get organised, I might be in my grave Lol

Read ,learn ,become totally confused and decide how honest you want to be when none of this was our fault in the first place!!

HUGS xxxxxxxx Terry
 

carolk

R.I.P
Declared Price on Title Deed
Brilliant post, says it all really!. You've covered every angle Terry!!!!!!!
 

traveller

Member
Declared Price on Title Deed
Got it in one - well several actually. Nice one Terry & Sue. Same here 1 year down and counting.
 

keny

Member
Declared Price on Title Deed
Hello David,
I have been reading through all of the tapu threads on the forum including your important contribution.From what I read into this, properties bought before 06/06/08 are not effected by law if the Tapu Value is lower than the true purchase price.Ths is what happened in our case.The builder said the value on the Tapu reflected the build costs at that time, and that the tax authorities in 2008 had looked at their books which were OK.The other question that springs from this is if we sell our property before the 5 year period will we still have to pay capital gains tax on the difference between the purchase price in tl and the actual sale price in tl?It also appears that we paid 1.5% of the property tax in GBP, although we have no receipt for that.Ca you or anyone else give an opinion?Thanks Keny.
 

DAVIDO

Member
Declared Price on Title Deed
that's the way my emlac put it keny, except mine said before 2007 and even indicated their could be a fine if it wasn't lower than purchase price.now it is not the case they said.but before that's how council wanted it.

davido
 

Martyn

Member
Declared Price on Title Deed
that's the way my emlac put it keny, except mine said before 2007 and even indicated their could be a fine if it wasn't lower than purchase price.now it is not the case they said.but before that's how council wanted it.

davido

Well that's good news for me then, Tapu in 2006.
 

REDDERS

senior member
Declared Price on Title Deed
now,are we all talking of purchase date or tapu date,we purchased in 2006 & i'm sorting out my tapu this week.

martin...
 

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