Buying commercial property

If you plan to run the business yourself then you will need to establish a company in Turkey to own your new commercial property. It takes just 1 or 2 working days to obtain title deed for any property to a company registered in Turkey, so it will save you much time.

If you buy a small office and consider renting it out it won’t be necessary to set up a company. The key to the decision on whether to establish a company or not should be the expected return on your investment, this will help you optimize taxation. For example, if you buy a big hotel in Turkey, but do not intend to run the business by yourself, just want to rent it out to any other company, it is not obligatory to establish a company in Turkey, but if you do so, it will benefit your investment, because the tax rate for a legal entity in Turkey is fixed and constitute 20% of the profit while the tax rate for a natural person depends on the amount of profit and can vary from 15% up to 35%.

Also note that rental income of a natural person owing commercial property in Turkey is only liable for tax assessment if the annual income is over 22 000 TL (app. 11 000 euro). There is no such minimum limit for legal entities, so if your expected profit is not that high consider owing your commercial real estate in Turkey just as a natural person.

Purchase tax for commercial property is the same as for residential property – 3.3% of the property value.

Annual tax for commercial property in Turkey constitutes from 0.2% till 0.4% of the property value depending on the real estate location. All taxes are levied on Tapu price of the property.

Here you can find details on some common aspects of investing to Turkey.
 

• Company registration

• Renting out your property

• Buying commercial property

• Expertise