What is my overall tax liability?

You may be liable for the following taxes:

Property Purchase Tax - This is payable on receipt of your
TAPU (Title Deeds) and is 3% of the value of the property.

VAT - When buying real estate of less than 150m2 from a Company, there is VAT of 1%.

Stamp Duty - This is a small administration fee charged for the notarising of
contracts. This is not the same as UK stamp
duty,

Real Estate Tax - This is an annual tax of 0.1% of the
stated value of the property, which may  be subject to annual increases by the government.

Personal Income Tax - You are liable for personal income tax
on rental income and capital gains although capital gains tax can be avoided if
the property is held for more than four years, and remembering that the capital
gain is based on the stated value of the property. Personal income tax is
currently on a sliding scale from 15%-35%.

Inheritance Tax - This is dealt with under a reciprocity
agreement, and is currently on a sliding scale from 1%-10%.

Environmental Service Tax - This a local water and
management charge by the local council, it is relatively inexpensive and is
currently 0.13 YTL per m3 of water used.

 

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