Declaring Property Purchase Price
We all know the problem of the builders and Estate agents of under declaring the true purchase price on the Tapu in order to avoid paying too much tax, therefore leaving it upto the individual buyers to actually declare the true purchase price to the tax office.

But how many people have abided by the law and can honestly say that they have declared the true value to the tax office?

Or how many people have failed to declare it hoping that the tax people will not find out?

If you have declared the purchase price to the Tax office, what response did you get from your Builder or Estate Agent?

Because we the buyers are in a NO WIN situation!
(1) If you fail to declare the purchase price to the tax office, when you decide to sell or are discovered by the tax people not to have declared it, then you are penalised and have to pay a penalty!
(2) If you are honest and declare the value straight away to the Tax office, and they discover there is a large discrepancy between the Tapu stated value and the actual price paid, then the builder/estate agents will also be in alot of trouble and will be liable for a large tax bill!!!!
Which I'm sure you will realise they will not like! and may make life difficult for you whilst you remain in their property.

To avoid problems from the above, It wouldn't surprise me if some people have declared a purchase price equivalent to the Tapu stated price (even if the purchase price was alot more) to avoid paying extra tax and to avoid getting the builders and estate agents in to trouble. Hoping again it won't get detected.

As for myself, I was one of the honest ones! I wrote a letter to the tax office declaring my true purchase price and guess what?
Yes, unfortunately I don't think the builder likes me anymore! The tax people have demanded a large payment from him, because the Tapu price was alot less than the price I paid.

Was I right? or was I wrong to declare the purchase price and comply with Turkish Law?
 

Martyn

Member
Declaring Property Purchase Price
We all know the problem of the builders and Estate agents of under declaring the true purchase price on the Tapu in order to avoid paying too much tax, therefore leaving it upto the individual buyers to actually declare the true purchase price to the tax office.

But how many people have abided by the law and can honestly say that they have declared the true value to the tax office?

Or how many people have failed to declare it hoping that the tax people will not find out?

If you have declared the purchase price to the Tax office, what response did you get from your Builder or Estate Agent?

Because we the buyers are in a NO WIN situation!
(1) If you fail to declare the purchase price to the tax office, when you decide to sell or are discovered by the tax people not to have declared it, then you are penalised and have to pay a penalty!
(2) If you are honest and declare the value straight away to the Tax office, and they discover there is a large discrepancy between the Tapu stated value and the actual price paid, then the builder/estate agents will also be in alot of trouble and will be liable for a large tax bill!!!!
Which I'm sure you will realise they will not like! and may make life difficult for you whilst you remain in their property.

To avoid problems from the above, It wouldn't surprise me if some people have declared a purchase price equivalent to the Tapu stated price (even if the purchase price was alot more) to avoid paying extra tax and to avoid getting the builders and estate agents in to trouble. Hoping again it won't get detected.

As for myself, I was one of the honest ones! I wrote a letter to the tax office declaring my true purchase price and guess what?
Yes, unfortunately I don't think the builder likes me anymore! The tax people have demanded a large payment from him, because the Tapu price was alot less than the price I paid.

Was I right? or was I wrong to declare the purchase price and comply with Turkish Law?


I think you did right Alan and given the chance again I would but people weren't aware of what was happening 4 years ago. We are in enlightened times now of the scams. All I know is I paid what I was told and I have contracts and receipts of exactly what I did pay.
 

Mushtaq

Administrator
Declaring Property Purchase Price
This was mainly caused by lack of education of the part of buyers and to some degree on agents (must admit I didn't know at the start either, I also believed the 'that's how its done here' line)

Things are now changing as more people know the processes, it's mainly about education and having a transparent buying and selling process, most buyers want to pay the proper fees and taxes, the culprits have been in the main the builders because they can save a lot of tax on profits by undervaluing the sales.
 

martin m

Member
Declaring Property Purchase Price
Hi alan
Its not that long ago that i wrote somewhere on here about "Oracle builders" of altinkum, thats the company who i bought off (through parador), and thankfully, because i did not know any different, they to my knowledge had all the correct values on tapus, which as we know is as rare a thing as rocking horse dung.
I would answer your question thus:
If someone had put it to me that they could fiddle it so i would not pay as much tax on my property, at the same time finding as many witnesses to prove their point as it took to convince me it was ok, then yes i have to be honest i would have happily had a less ammount put on my tapu.

But by making sure as you have that the correct ammount is on your tapu, you will sleep better knowing that its not gonna come and bite your ass later, unless of course THERES A AMNESTY
 
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Martyn

Member
Declaring Property Purchase Price
Was that recent Martin because I think they are doing it now but a few years ago the majority(if not all) were putting the lower value?
 

Guz1

Member
Declaring Property Purchase Price
There could be another aspect to this that could heap more manure on buyers. What if someone on an unfinished site goes the honest route, has the Tau value changed and the builder gets done for tax evasion leaving him too cash strapped to finish the site?
 

carolk

R.I.P
Declaring Property Purchase Price
At this point in my life here in Turkey, I don't give a monkeys!!! If they want to come and look for me as an individual to see if I paid what it says on the Tapu, I will say yes!! I didn't put the price on and did ask when I bought my first property - they didn't care!! Now, just coming to end of all my renovation work (again) and living in a builders yard for two weeks, and, having not the slightest intention of moving again, I could care less about their corrupt system and whether I might owe them a few TL!! I personally will only give the 'authorities' what they ask for when they ask for it. I am tired of running myself into the ground 'being honest'. It certainly doesn't pay here!!
 

Roydsio

Member
Declaring Property Purchase Price
There are a lot of posts on the forum about values being under declared on the Tapus to reduce the taxes paid. We currently have a dlimea that ours has been overvalued from the price we actually paid so we being asked to pay an inflated tax.

We are now near completion and have received a request from the developer to pay an amount which is the 3% tax for our Tapu. When I worked the 3% of the purchase price I arrived at a figure a couple of hundred pounds lower than they are requesting. When I queried this I was told that a higher value than the actual purchase price had been declared on the title deeds and not the amount we have paid. I am being told that this figure has been calculated by the Turkish municipality.

How can this be correct, surely we can't pay tax on monies we haven't spent in the purchase. I assumed it was the developer who declared the selling price and not the municipality.

Any advise would be appreciated.

Regards
 

juco

Member
Declaring Property Purchase Price
I would go to the Turkish municipality and tell them what you paid and what should go on the Tapu.
Without working out the reason I bet the builder is talking crap but he will get more money from this.

Check it out yourself.
 

thingthong

Member
Declaring Property Purchase Price
I would'nt worry about it being a couple of hundred over,only if it were a few thousand over
And also only pay half the 3%,builder should pay half also.
 

Martyn

Member
Declaring Property Purchase Price
There are a lot of posts on the forum about values being under declared on the Tapus to reduce the taxes paid. We currently have a dlimea that ours has been overvalued from the price we actually paid so we being asked to pay an inflated tax.

We are now near completion and have received a request from the developer to pay an amount which is the 3% tax for our Tapu. When I worked the 3% of the purchase price I arrived at a figure a couple of hundred pounds lower than they are requesting. When I queried this I was told that a higher value than the actual purchase price had been declared on the title deeds and not the amount we have paid. I am being told that this figure has been calculated by the Turkish municipality.

How can this be correct, surely we can't pay tax on monies we haven't spent in the purchase. I assumed it was the developer who declared the selling price and not the municipality.

Any advise would be appreciated.

Regards

Have you got the Tapu to check he is telling the truth?
 

Roydsio

Member
Declaring Property Purchase Price
Hi Carol

We have agreed the 3% in the contract which is ok. It's just the inflated 3% we are concerned about. We haven't seen any paperwork yet. They have said they can't transfer the property and give us our Tapu until we have paid the tax.

Regards
 
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carolk

R.I.P
Declaring Property Purchase Price
Hi Roydsio, then all you can do is check it out. Always check, never just take anyones word for it as there is a paper trail. Must admit, its a new one on me - inflated!. Good luck and hope all goes well for you.
 

Martyn

Member
Declaring Property Purchase Price
Hi Carol

We have agreed the 3% in the contract which is ok. It's just the inflated 3% we are concerned about. We haven't seen any paperwork yet. They have said they can't transfer the property and give us our Tapu until we have paid the tax.

Regards

At the point you get the Tapu at the office check the value is correct.
 

Roydsio

Member
Declaring Property Purchase Price
Hi Martyn

We have had to do the poa through the agent as we are unable to go over again so won't be able to check. Is there anything we can get copies of and check here before we issue the funds? The agent said they can't change the value on the deeds as it is the muncipality who have put the amount in.

Regards
 
L

les&Tasha

Guest
Declaring Property Purchase Price
Roydsio,

In my humble opinion you are being fed bullshit! Get on the plane and go to the Tapu office in person. The transfer value is the value of the transaction. Period. The belediyesi do set a minimum vale for the transfer value but this is way below the transaction value! You pay 1.5% the vendor 1.5% thats the law. Get the bill from the Tapu Cadestre then go to the Tax office and pay. You will get an official receipt. The builder needs to do the same thing.

Honestly inexperienced people are told so many lies...
 

Martyn

Member
Declaring Property Purchase Price
Hi Martyn

We have had to do the poa through the agent as we are unable to go over again so won't be able to check. Is there anything we can get copies of and check here before we issue the funds? The agent said they can't change the value on the deeds as it is the muncipality who have put the amount in.

Regards

I'm no expert on this but they are acting as poa for you so I would stipulate that the value on the Tapu in the price you pay and the % is based on that value. Pay the balance on the day you get the tapu. Saying that, I did all the wrong things 4 years ago when we bought but by good luck it worked out for me. I have learnt a lot from this forum so take heed of people's advice, they are not being smart they are being helpful from their own experiences.

Good luck with it and let us know how you get on.
 

juco

Member
Declaring Property Purchase Price
Now could it be he wants a higher value so he can take out bigger loans against the property!!!!!!!!
 

jearden

Member
Declaring Property Purchase Price
Sounds like one of the honest developers to me.
Assuming your contract was in a currency other than TL, then there are at least 3 ways that you might calculate the TL value that goes on the Tapu.
1. Contract price converted at contract date exchange rate.
2. Contract price converted at stage payment rates.
3. Contract price converted at Tapu date.

I'm not saying which is correct, but £200 represents only a small shift in exchange rate.
 
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