Inheritance and Gift Tax Consultancy

Veraset ve İntikal Vergisi Danışmanlığı

What Does Gift and Inheritance Tax Mean?

Inheritance and gift (transfer) tax is a type of tax that the heirs are obliged to pay under the law of inheritance.  As soon as individuals make unreturned acquisitions to each other, inheritance and gift tax arises making up the current issue regulated under the law of inheritance. Therefore, it is necessary to get to know some information about the Inheritance Law first in order to understand the inheritance and gift tax clearly.

Inheritance and Gift Tax Consultancy

In the event of the death of the legator, the rights of the legal heirs and the appointed heirs (they are generally called heirs), come into prominence. The legator is the deceased person whose legacy of is subject to distribution to the heirs left. Those who have a voice on the property are legal heirs. After the death of the legator, it is a legal obligation for the heirs to complete some necessary legal procedures in order to obtain their legal rights stemming from inheritance. Inheritance and gift tax is one of such procedures.

In addition to the fact that there are legal actions that the heirs have to take after the death of the legator, the real estate system is being shaped in terms of Inheritance Law. It is a legal practice, also known as the status grading system, which is called the group system and expresses the closeness of the heirs to the deceased. While the legal heirs have legal rights on the property, it is possible for the appointed heirs to benefit from these rights as well.

The Turkish law-maker regulated the tax dimension under Inheritance and gift tax law  as follows:

The transfer of goods belonging to persons who are citizens of the Republic of Turkey and goods in Turkey from one person to another in a gratuitous manner by inheritance or by any means is subject to Inheritance and Gift Tax. This tax is also included in the goods that Turkish nationals can acquire in foreign countries through the same means. A foreign person who acquires the property of a person who is a national of the Republic of Turkey outside the borders of Turkey, by inheritance or otherwise gratuitously, and does not have a residence in Turkey, is not liable for this tax.

2022 Inheritance and Gift Tax Tariff

Base Tax rate on succession Tax rate on gratuitous transfers*
For the first 500.000 TL %1 %10
For the next 1.200.000 TL %3 %15
For the next 2,500,000 TL %5 %20
For the next 4.900.000 TL %7 %25
For the part of the base exceeding 9,100,000 TL %10 %30

Declaration of Inheritance and Gift Tax

In order to pay Inheritance and gift tax, a certificate of inheritance must be obtained. The certificate of succession is received by any of the legal or appointed heirs, provided that the identity is exhibited. These documents are obtained from the notary public or the Magistrates’ Court.

  • After the receipt of the inheritance certificate on inheritance and gift tax, the tax must be paid to transfer the legal shares of the heirs on the property. This tax is also called Inheritance and Gift Tax.
  • A declaration is required for inheritance and gift tax. While preparing the declaration, it is possible to make these transactions from the tax office. In addition, these transactions can be carried out online through the website of the Revenue Administration.
  • Some documents are required before the tax return is prepared. Among these documents, the inheritance certificate comes first. It is not possible to pay taxes to the tax office without an inheritance certificate.
  • In case of owning real estate, documents to declare the tax value to be collected from municipalities and documents to be obtained from the bank regarding bank accounts should be prepared. If the deceased had any partnership or company membership, all such official documents must be provided.
  • It is seen that in all official documents to be obtained from banks or different institutions before the application for inheritance tax, the original of the death certificate and the original certificate of inheritance are requested by the authorities. For this reason, if the heirs will share property due to death, that is, if the inheritance will be shared, the inheritance certificate is one of the first documents to be obtained.
  • When the inheritance and gift tax is to be paid, the documents must be submitted to the competent authorities completely and completely. It is possible to initiate legal action through a certificate of inheritance and succession.

Inheritance tax, is a type of tax that the heirs are legally obliged to pay in order to inherit the property that arises upon the death of the testator. In order to be able to pay the inheritance and gift tax, first of all, an inheritance certificate must be obtained, the death certificate and the documents requested from the institutions must be brought together and then an application must be made to the tax office. You can apply to the tax office physically or online for the inheritance and gift tax. In order not to lose any of your rights and interests in the tax-related legal proceedings discussed in the article, it would be appropriate to seek legal support from an experienced and qualified lawyer.

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