The Union of Turkish Public Notaries ("Notary Union")
has stated that both a building's value and land's value
will be considered when calculating fees and stamp tax for
construction agreements undertaken in exchange for condominium
rights. To clarify contradictory practices, the Notary Union
considered views from the tax courts and Revenue Administration,
and ultimately sought the opinion of the General Inspectorate of
the Ministry of Justice. The Notary Union noted that inspectors
follow the Ministry of Justice's approach, which includes both
a building's value and land's value in calculations.
The Notary Union refers to the Revenue Administration's
opinion that an adequate value should be determined in construction
agreements in exchange of condominium rights, as well as
preliminary agreements to sell property. The value should used to
calculate proportional fees and stamp duty. However, the Revenue
Administration did not provide any information about determining an
adequate value in such agreements. Therefore, the Notary Union
interprets "adequate value" as the real estate tax value,
or the fair market value of property as declared by the concerned
The Notary Union also considers the approach adopted by tax
courts, which only consider the land's valuation.
Please see this link for Notary Union's Circular
No. 2016/58, issued on 23 June 2016 (only available in
Information first published in the MA | Gazette, a fortnightly legal
update newsletter produced by Moroğlu Arseven.
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