Why Are the Declared Title Value and Taxes Examined Together?

Property Transactions and Legal Due Diligence

Prepared by: Constantinople

The advertised price, declared title value and total acquisition cost are different. If a buyer considers only payment to the seller, land registry fees, transaction expenses and any other applicable taxes may be omitted from the investment calculation. Contractual allocation of fees and taxes must be assessed together with obligations owed to the public administration.

Under the Fees Law, the declared actual transfer and acquisition price, no lower than the property-tax value, forms the basis of the land registry fee. A lower property-tax value does not permit concealment of a higher actual sale price. Discovery of an inaccurate declaration may create additional fees and sanctions. The agreement and payment documents must align with the same transaction.

Foreign buyers must also consider payment and foreign-exchange purchase certificate rules. For citizenship purposes, determining the investment amount should not be confused with the ordinary fee-base assessment. TKGM's document confirming the citizenship investment amount does not alone calculate every tax. Each expense beyond the purchase price must be supported by its relevant documents.

If later letting or resale is planned, tax consequences may be considered before acquisition. This article does not provide a fixed cost calculation. We assess property type, seller, date, intended use and contractual terms together, identifying tax and expense items requiring separate calculation in writing.