Taxes on property in Turkey: a buyer's guide

Which property taxes apply in Turkey?

There is no single “property tax” bill covering every stage. A foreign buyer may encounter a title-deed fee and, for a new build, VAT; an owner may owe annual emlak vergisi to the municipality; a landlord may have rental-income reporting; and a sale, inheritance or gift can create separate tax questions. The correct answer depends on the property, transaction, taxpayer, residence status, use and tax year.

Use this guide to identify the issue, not to copy a number from an old calculator. The buying property in Turkey guide covers the legal transfer process, while the selling property in Turkey guide covers a seller’s file and title-deed steps.

Turkish property tax summary table

Charge or tax	When it can arise	Rule or figure	What to confirm
Title-deed fee (tapu harcı)	Sale or other chargeable transfer	2% for the buyer and 2% for the seller, calculated on the declared value but not below the property-tax value	Current tariff, exemptions, declared value and contract allocation
Annual building tax	Ownership of a residence or other building	0.1% for a residence and 0.2% for other buildings; doubled in the metropolitan regime	Statutory tax value, building classification and municipality assessment
Annual land or plot tax	Ownership of land or a plot	0.1% for land and 0.3% for plots; doubled in the metropolitan regime	Whether the parcel is land or plot and the applicable municipal regime
VAT on a new build	Taxable first or later delivery by a VAT-liable seller	No single property rate; Law No. 3065 Article 28 allows differentiated rates. Article 13(i) gives a conditional first-delivery exemption	Property, seller, delivery, buyer residence and foreign-currency payment conditions
Rental-income tax	Rent or other income from Turkish property	Classified under Income Tax Law Articles 70 and 86; current exemptions and thresholds vary	Resident/non-resident status, withholding, expenses and tax-year guidance
Capital gains	Sale of a qualifying property or right	Generally within the regime when an individual sells within 5 years of acquisition	Acquisition cost, indexation, current exemption and commercial activity
Inheritance or gift tax	Property inherited or transferred without consideration	Law No. 7338 progressive rules and exemptions; current amounts change	Valuation, relationship, transfer route, declaration date and current tariff

Every figure in the table comes from the laws listed under the sources at the end of this guide. The table does not calculate a particular bill. A tax adviser may also be needed where a company, business, foreign income, treaty or repeated property trading is involved.

How is the Turkish title-deed fee calculated?

For a sale, Law No. 492 and TKGM guidance state a fee of 2% for the buyer and 2% for the seller. The base is the declared transfer and acquisition value, but it cannot be lower than the property-tax value. The two statutory shares therefore total 4% before other costs when both are charged on the same base.

The contract may say that one party will bear some or all of the economic burden, but that private arrangement is separate from the statutory assessment. Do not understate the declared value: the Fees Law provides for additional assessment where the declared amount is below the property-tax value or does not reflect the real transaction.

Before the Tapu appointment, check the current property-tax value, title status, debt and annotations, identity of the parties, any exemption and the payment instructions. A title-deed fee is not the same as VAT, annual property tax, notary, translation, valuation, banking or lawyer costs.

What is annual emlak vergisi in Turkey?

Law No. 1319 imposes building tax on buildings in Turkey and land tax on land and plots. The owner, usufruct holder or person acting as owner is generally liable; co-owners in shared ownership are assessed according to their shares, while joint ownership can create joint responsibility under the statute.

For buildings, the statutory rates are binde one (0.1%) for residences and binde two (0.2%) for other buildings. For land, the rate is binde one (0.1%), and for plots it is binde three (0.3%). The law doubles these rates within the metropolitan municipal boundaries and areas to which the metropolitan regime applies. Confirm the property’s legal classification rather than relying on its estate-agent description.

The tax base is the statutory tax value, not simply the price shown in a listing. That value is calculated under the Property Tax Law’s valuation rules and is updated under the applicable valuation framework. The municipality’s record, parcel use, building category and ownership share should be checked before budgeting.

Law No. 1319 provides two equal instalments: the first in March, April and May, and the second in November. Check the current municipality payment channel, assessment and arrears. Before a sale, inheritance transfer or gift, ask how outstanding municipal property tax is cleared and allocated between the parties.

Is there VAT on a new build in Turkey?

Value Added Tax (KDV) applies to taxable deliveries and services made in Turkey. A new-build purchase from a VAT-liable developer is not automatically exempt, and VAT treatment cannot be inferred only from the buyer’s passport. The property, seller, first or later delivery, construction classification and current rate decision must be checked against the invoice and contract.

Law No. 3065 Article 28 sets a statutory 10% rate and authorises differentiated rates, including a reduction to 1% or an increase within the legal power. That statutory wording is not a safe substitute for the current effective schedule. Do not add a default VAT percentage to a budget until the developer’s transaction and the current official rate table are confirmed.

When can a non-resident foreign buyer claim a VAT exemption?

Article 13(i) of Law No. 3065 provides a conditional exemption for the first delivery of a building constructed as a residence or workplace where the price is brought into Turkey in foreign currency. It can cover a foreign individual who is not resident in Turkey, subject to the statutory conditions and exclusions. “Foreign” does not by itself mean “non-resident” for this purpose.

The exemption must be documented through the seller’s process and the required payment evidence. If the qualifying conditions were not met, the buyer and seller can face liability for unpaid tax and related amounts. If the property acquired under the exemption is disposed of within 3 years, the law requires the previously unpaid tax to be paid with the applicable deferral interest before the Tapu transaction.

A resale is not the same as the qualifying first delivery. Ask for written confirmation of the buyer’s residence position, currency transfer, property type, seller status, first-delivery status and disposal restriction before treating an advertised “VAT-free” price as final.

How are rental income and holiday lets taxed?

Income from letting Turkish property is classified as immovable-property income under Income Tax Law Article 70. The filing result depends on whether the owner is resident or non-resident, who the tenant is, whether withholding applies, the current annual exemption or declaration threshold, deductible expenses, co-ownership and any applicable treaty. The Revenue Administration’s non-resident guide is useful for structure, but its old examples and amounts must not be reused for a current year.

Keep the lease, bank records, invoices, withholding documents, property expenses, ownership share and collection dates. Foreign-currency rent may require conversion under the applicable tax rules. A short-term tourist let also has a separate regulatory layer: Law No. 7464 treats a residential letting for 100 days or less as within its tourism-rental regime and requires a Tourism-Purpose Rental Permit, subject to exceptions and current procedures. The holiday-rental licence service explains that issue; permission does not answer the tax calculation.

Do not assume that an agent’s collection statement is a tax return, that non-residence removes Turkish tax, or that an old online calculator reflects the current year. Residence, withholding, exemptions and expense methods should be checked for the year in which the income is received or deemed received.

Is there capital-gains tax when selling a Turkish property?

For an individual, a qualifying gain from selling a property or right is generally within the Income Tax Law capital-gains regime when the sale occurs within 5 years of acquisition. The calculation is not simply sale price minus purchase price. Acquisition costs, permitted indexation, documented expenses, the current annual exemption, ownership share, sale date and whether the activity is commercial can all matter.

A sale after 5 years is not a universal exemption for every seller or property. Repeated purchases and sales, development activity, company ownership, inherited property and transfers connected with a business can change the classification. The selling property guide sets out the legal transfer file; tax treatment should be checked before signing a sale agreement or accepting a payment.

The title-deed fee on transfer and any capital-gains tax are separate questions. A Tapu receipt does not prove that the income-tax position has been calculated, and an income-tax declaration does not replace the land-registry transfer requirements.

What inheritance and gift tax applies to Turkish property?

Law No. 7338 applies to property located in Turkey inherited or transferred without consideration, within the statute’s scope. Turkish property should therefore be reviewed for inheritance tax even where the deceased, donor or heir lives abroad. The tax base uses statutory valuation rules, and inherited immovable property is valued by reference to the property-tax value for the initial assessment under the law.

Inheritance and gift transfers use progressive rules, and a gift is not automatically taxed like an inheritance. The law also provides specific treatment for certain transfers from parents, spouses and children. Exemptions and tariff bands are adjusted; the current exemption amount, current tariff and any relevant presidential or annual adjustment must be checked with the Revenue Administration before a declaration or Tapu application.

Law No. 7338 sets different declaration periods according to where the death occurred and where the taxpayers are located. For example, the statute uses 4-month, 6-month and 8-month periods in specified cross-border situations, and a transfer without consideration generally has a 1-month declaration period from legal acquisition. These are not a substitute for analysing the event and service dates. The inheritance in Turkey guide covers the succession file and foreign-element documents.

A foreign heir may also need a Turkish succession certificate, valuation and tax clearance before the title can be transferred. Coordinate the tax declaration, inheritance documents and Tapu route rather than treating them as separate informal tasks.

What should a Fethiye property owner keep for tax purposes?

Keep the current Tapu and acquisition contract, title-deed payment receipt, property-tax assessment, municipal receipts, valuation report, building and iskan documents, lease and bank records, rental expenses, withholding certificates, inheritance or gift documents, foreign-currency transfer evidence and every tax return or correspondence. Record ownership shares and dates clearly.

For a Fethiye property, the municipality’s current assessment controls annual property tax. The competent Tapu Müdürlüğü controls transfer documents and checks relevant property-tax information through its systems. Offices, payment portals, forms and thresholds can change; verify the current route before travelling or sending money.

Av. Yanatma can review the Turkish property file and identify the legal and procedural questions for a defined purchase, sale, ownership, rental, inheritance or dispute. Tax computation requiring accounting, treaty or company analysis should be referred to the appropriate tax professional. For property title and contract issues, see the property-law service; for a defined matter, use the contact page.