Stamp Duty: What It Is and How It Works in Turkey

Stamp Duty: What It Is and How It Works in Turkey

Stamp duty is a type of tax that is imposed on various types of legal documents in Turkey. The purpose of stamp duty is to generate revenue for the government and to help ensure that legal documents are properly executed and recorded.

In Turkey, stamp duty is governed by the Stamp Duty Law, which sets out the types of documents that are subject to stamp duty, as well as the rates of duty that apply.

The types of documents that are subject to stamp duty in Turkey include:

• Contracts and agreements
• Promissory notes
• Powers of attorney
• Leases
• Loan agreements
• Bills of exchange
• Certificates

The rate of stamp duty that applies to a particular document will depend on the type of document, the value of the transaction, and other factors.

For example, the stamp duty on a lease agreement in Turkey is typically 0.948% of the total value of the lease. The stamp duty on a loan agreement is 1.189% of the loan amount, while the stamp duty on a bill of exchange is 0.298% of the total value of the bill.

Stamp duty is generally paid by the party that is responsible for preparing the document, although the parties may agree to share the cost of the duty.

At Estates Istanbul, our legal department can provide guidance on stamp duty and other legal matters related to property transactions in Turkey. Contact us today to learn more