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 The Inheritance Law and the Transfer-Inheritance Tax in Turkey

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jacktandy00
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The Inheritance Law and the Transfer-Inheritance Tax in Turkey Empty

PostSubject: The Inheritance Law and the Transfer-Inheritance Tax in Turkey   The Inheritance Law and the Transfer-Inheritance Tax in Turkey EmptyTue Oct 02, 2018 4:51 pm
Property seekers and real estate investors often ask for inheritance law in Turkey, which many find troubling:
What are the procedures of inheritance and related laws in Turkey?
How will the property of the deceased be handled and who will get them? And what is its future?
Can the government acquire the foreign investor's property after his death?
Are there inheritance taxes? Does the Turkish citizen differ from a foreigner in the tax’s value?
And other questions of interest to every investor about the legacy of real estate in Turkey, we review the information, facts, and laws related to this article, to serve as a comprehensive guide includes answers to the most pressing questions about inheritance law and inheritance tax in Turkey.
Inheritance of property in Turkey
The inheritance law in Turkey includes foreigners, and a foreign can bequeath his property to his heirs according to the law governing it.
Law of real estate inheritance in Turkey
The issue of inheritance is a fundamental legal concern for investors. It is considered one of the most important things that an investor needs to gather enough information about before investing in any foreign country and ensures the ability to preserve immovable property in order to preserve his property.
In Turkey, the state clearly describes all aspects of inheritance law, inheritance tax, and property transfer, because of the many legal aspects, different situations, and sometimes exceptional circumstances.
 
The principle followed in Turkish inheritance laws:
At first it must be known that the principle governing the laws of Turkish inheritance is the "location of the property", that is, what regulates the mechanism of legal dealing with the property is its location, the Turkish law is applicable when dealing with ownership of a property located within the territory of the Turkish Republic, including real estate and immovable property.
In addition, what foreign investors must know when buying a property in Turkey is that the movable property is subject to the laws of inheritance in the country the deceased hold its citizenship, while Turkish law is followed in respect of real estate and immovable property.
Who are the immediate heirs of real estate in Turkey?
In the absence of an officially certified will, the legal heirs of immovable property in Turkey are determined in the following serial order:

  • The first heirs of the deceased person are the children and the husband or wife who get a specific share.
  • If the deceased person does not have children, his family will be his heirs (father and mother).
  • In the absence of children and parents, the spouse/wife shares the inheritance with the grandfather of the deceased or his brother.
  • If the deceased person does not have relatives alive, the entire property goes to the husband or wife.
  • In the absence of any heirs, all the deceased’s properties will go to the Turkish government.

The deceased’s properties shall be distributed to the previous categories after the discharge of the inheritance, if any, the debts of the deceased are paid to banks, installments, or any mortgage.
According to Turkish law, half of the property will be for the wife and the other half for the children equally, as the male and female quotas are equal. This leads investors to question whether their country’s inheritance laws can be followed, which is permitted, provided that it is applied to all heirs.
Papers required for transferring the property to heirs in Turkey
The following papers must be submitted to each of the heirs in order for the properties to be transferred:
[list=margin-top:0in]
[*]The family statement “inheritance inventory “shows heirs and kinship, certified and translated to the Turkish language.
2. Registration in the tax register in Turkey and obtaining tax numbers.
3. Valid passport.
4. Providing personal photos.
[/list]
Are there taxes on inheritance and properties’ transference?
Foreigners are subject to inheritance and transfer tax if the funds inherited or transferred within the borders of the Republic of Turkey; also whether the heir is living in or outside Turkey, in the event of receiving funds through inheritance or free transfer.
In comparison with other EU countries, the value of inheritance tax in Turkey is relatively low and varies depending on the value of the investor's property, where a lower tax rate is deducted whenever the property price falls.
The inheritance tax rate varies from 1% to 30%, depending on the residence status of the heir and location of the property.
Thus, when foreigners’ properties are subject to Turkish law, it will inevitably be subject to inheritance and transfer tax. The tax is divided into two types of properties. Each property has a different ratio. There are properties that can be transferred to the owner at no charge through prizes or gifts or donation and so on, including what was obtained through inheritance.
The tax rates mentioned in Article 16 of Law No. 7338 have been determined by increasing the rate of re-evaluation provided. Accordingly, inheritance and transfer taxes imposed on the value of the property (tax brackets) are calculated in transfers through inheritance, or through free transfer (donation, prizes, etc.) 
Applying taxes on foreigners in Turkey:
Turkey's tax system is applied to both Turks and foreigners, according to the senior adviser of the Investment Promotion and Support Agency of the Turkish Prime Minister Dr. Mustafa Kukso Pointing out that the citizens of all countries are treated as Turkish citizens for tax equally and there is no difference between the foreign nationals and Turks.
When should the Turkish inheritance tax be paid?
Under Turkish law, the inheritance tax should be paid within a maximum period of 3 years and is to be paid in May and November each year.
Can you write a will in Turkey?
As in many countries of the world, anyone in Turkey can write a will explaining for whom he/she wishes to leave the properties after death, and the competent courts will consider the will of the person after his death.
The Turkish Civil Code clarifies how to deal with the will: for foreigners, the will must be prepared in accordance with Turkish law in this regard, to be a legally recognized will.
The conditions provided for in Turkish law on the writing of the will, the person should be over the age of fifteen and to have full mental strength.
The will must also be written in the handwriting of the owner, and the date must be mentioned in detail in the day, month, and year, also must be accompanied by his signature. The person concerned must submit the will either to the court or to the clerk of justice, signed before two witnesses so that the proceedings proceed properly.
In this regard, the Court of Peace or the Court of First Instance shall hear cases relating to inheritance. Each case may require different time, depending on the complexity of the case and the functioning of the Court itself.
Can one of the heirs be prohibited from getting his inheritance?
One of the heirs may be prohibited from obtaining his share of the estate in special cases, but the person concerned must explain why he or she is doing so before the court when he wishes to withhold the inheritance from a legal heir, and the person deprived of the inheritance cannot sue the person concerned.

In the end, after all the contents of the inheritance system in Turkey and inheritance and transfer tax have been clarified, you can be assured of the safety of laws and procedures related to the purchase of your next property in Turkey in a reliable and safe manner, and to ensure the future fate of your investment.
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