The title deed fee system is changing! What percentage will be paid?
The title deed fee system is changing! What percentage will be paid?
It has been claimed that a new regulation will be made for the stamp duty collected from those who buy and sell real estate. Are the stamp duty rates decreasing?
The title deed fee system is changing! What percentage will be paid?
In Turkey, when buying and selling real estate, it is mandatory to pay the stamp duty. While this stamp duty issue is a source of income for the state, the failure to collect the desired amount poses a problem. The side ways used to pay less stamp duty also bring great losses for real estate buyers. While this system is losing its function in every way, it has now emerged that a new regulation is being worked on.
NEW SYSTEM IN TITLE DEED FEES!
According to information obtained from AKP sources, a new system will be introduced for the payment of the stamp duty. Currently, those who buy real estate pay 2 percent and those who sell 2 percent. 4 percent of the sale price of a property must be paid as stamp duty. However, this amount is very high when real estate sales prices are considered. Those who want to reduce this, report the sales price to the land registry office as much lower. The stamp duty is paid, but the payment is not made based on the actual sales value.
The Ministry of Treasury and Finance, which wants to reduce informality in real estate sales, is preparing to switch to a new system. First, calculations are being made to reduce the 4 percent title deed fee rate and eliminate it from being a burden. Then, a practice will be implemented that will make it mandatory to report the real sales value of real estate to the land registry. The difference between the declared value determined by the municipalities and the real sales value will be eliminated.
The system applied for the title deed fee will not continue. The details of the new system have not been fully revealed. According to the information obtained, the 4 percent system divided between the buyer and the seller will not continue. However, it is not known to what percentage the title deed fee rate will be reduced. Plans are also being made to impose additional sanctions for those who do not show the real sales value on the title deed.
It is expected that this regulation will be included in the first omnibus bill proposal to be submitted after the Turkish Grand National Assembly opens. A hot agenda is expected on this issue in the coming weeks.
