daz7692

Member
tax on my land
When I bought some land in Turkey I used a Ltd company as I thought I would begin building straight away. I did not and 3 years later and a visit with the accountant left me feeling quite ill, aside from the rip off charges from him and business association etc he tells me if I want to transfer the tapu's to my name I will pay tax at 18% on the land even though the company was set up with just the money for the land purchase which I put in and I have done no other trading.

He tells me if I build keeping under 140 m2 the tax will be just 1% but in the meantime I have company costs to maintain.

Does anyone know if this is correct? To release my investment showing no profit as land prices have not really moved is it true I will pay 18% tax plus all the stuff at the tapu office?

It seems I am locked into my company although it has not made profit I cant shut it without all the costs plus this 18% tax figure he is banding around?

Help !
 

immac

Senior Member Has-Been
tax on my land
The build number is actually 149m2 - anything over that (150m2 and over) is full KDV (VAT).

I don`t think he is telling you anything that is wrong. You have to keep the books in order for a Ltd Co, just as in UK, but he should be advising how to claim things against tax owed.

You don`t have to use an accountant - some people do it themselves.

If you sell under 5 years (it used to be 4) then there is Capital Gains Tax to pay. The British (assuming you are a UK taxpayer) Taxman will also be interested in the proceeds of any sale.

When you buy land using this vehicle it should be on the basis that you have bought significantly cheaper or have taken a very special bit of land that otherwise you could not own. That is the only good reason for doing it.

I don`t think land prices have risen much, unless it is somewhere special.

Ian
 
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Sara-666

Member
tax on my land
This link might help you Property related Taxes and compulsory insurance in Turkey

Hope this is allowed?

We bought land through a ltd company because it was just outside a village and only Turkish persons were entitled to buy there. If we were to transfer the land from the company to one person then I was told we would have to pay company tax of 20% of any profit made. The only tax on land bought and sold at the same price should be 1.5% by the vendor and 1.5% by the buyer (in your case 3% as you are both) to the tapu office surely? Otherwise we have been given wrong info!

As for the ltd company it takes 2 years to wind down during which time you still have to pay all charges and taxes relating to that company.

Good luck, if you find out any different please post it on here as I would be interested to know to?

Sara
 

ChrisBobs

Member
tax on my land
Hello Daz,
a friend of mine is researching this question just this week also.
When you refer to the the 18% tax on transferring the tapu to your own name, is that with or without a building on it?
thanks
Chris
 

kelchocolate

Just Watch Me
tax on my land
What they told you is very true about keeping the size to 140m2,we were told the same.
We made our villa bigger,195m2 and of course got hit by the tax.At least we got larger rooms.
 

daz7692

Member
tax on my land
I thought if I transfered the land back to me showing no profit on purchase price (which I was honest about and payed the right amount of tax) I would just pay the property related tax as usual? I need to check deeper....Accountants help!
 

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