Turkey – Property Taxes

Which taxes and fees apply when purchasing property in Turkey?

Title Deed Transfer Tax (Tapu Harcı)
Commonly referred to simply as “Tapu,” the title deed transfer tax is levied at a flat rate of 4% of the declared property value and covers all property transfers throughout the country, regardless of property type or location. Although the tax is nominally divided equally — 2% from each party — it is not unusual in practice for the buyer to absorb the entire 4% as a result of negotiations and local market conventions. This is broadly comparable to stamp duty land tax in the UK or transfer duty in South Africa, though Turkey’s flat-rate structure tends to be simpler and often less costly in absolute terms for mid-range purchases. Always verify current rates with the General Directorate of Land Registry and Cadastre (TKGM).

Value Added Tax (VAT / KDV)
VAT is charged on newly constructed properties in Turkey, with rates varying between 1% and 18% depending on the property type and location. Residential apartments attract a rate of 1%, commercial buildings and offices are subject to 8%, and undeveloped land carries an 18% rate. VAT is only levied when a construction company sells a new-build; private resale transactions between individuals are generally not subject to VAT. Confirm with the developer or your legal adviser whether VAT is already factored into the quoted purchase price.

Administrative and ancillary fees
A number of standard administrative costs arise during a Turkish property purchase: a revolving fund fee (Döner Sermaye Ücreti) of approximately €790, a sworn translator fee of around €100 for the official translation of documents, a municipal declaration fee of around €40, and a municipal valuation fee of around €60. Every property acquisition in Turkey also requires DASK compulsory earthquake insurance, which is renewed annually; most buyers can expect to pay between 2,000 and 3,000 Turkish Lira for this policy.

Legal and agent fees
Solicitor or lawyer fees for a Turkish property purchase typically fall between 1% and 2% of the property value, covering due diligence, contract drafting, the title deed transfer process, and coordination with local authorities. Real estate agents generally charge a commission of 2% to 3% of the sale price.

Worked example (as of 2025)

Consider a resale apartment purchased for TRY 5,000,000 (approximately €140,000 at illustrative exchange rates — always check current figures):

The overall cost of buying property in Turkey typically runs between 8% and 12% above the purchase price, depending on whether the buyer covers the full transfer tax and engages professional legal representation. The figures above are illustrative; always request itemised quotes from your solicitor and agent before exchanging contracts.

Step-by-step guide to buying property in Turkey

1. Obtain a Turkish Tax Identification Number (Vergi Numarası) — required for all property transactions. Apply at any local tax office (Vergi Dairesi) or through the Revenue Administration (GİB) online portal.
2. Open a Turkish bank account — necessary for making and receiving payments in Turkish Lira and for complying with anti-money laundering requirements.
3. Carry out due diligence — commission a title deed (Tapu) search through the TKGM to verify the property is free from liens, debts, or planning violations. Appoint a locally qualified lawyer.
4. Sign a preliminary sales contract (Satış Vaadi Sözleşmesi) — usually notarised; a deposit (typically 10%) is paid at this point.
5. Obtain a property valuation report (Ekspertiz Raporu) — a mandatory independent valuation required by the Land Registry that establishes the minimum taxable value for transfer tax purposes.
6. Pay transfer tax and administrative fees — settle the Tapu Harcı and revolving fund fee before your Land Registry appointment. The Registry will send an SMS with the relevant payment reference.
7. Attend the title deed transfer appointment (TKGM) — both buyer and seller (or their authorised representatives through a Power of Attorney) must attend, together with a sworn translator where necessary.
8. Receive the title deed (Tapu) — the deed is issued at the appointment itself. Register for Emlak Vergisi (annual property tax) with your local municipality within the same calendar year.
9. Arrange compulsory earthquake insurance (DASK) — required for utility connections and official transactions.

Which taxes and fees apply when selling property in Turkey?

The 4% title deed transfer tax is ordinarily divided between buyer and seller, though buyers sometimes end up covering the full amount in practice. As the seller, you should set aside your 2% share of the Tapu Harcı unless the parties agree to a different arrangement during negotiations. The property transfer fee rate in Turkey is 4% of the value stated in the sales contract or the assessed value of the property, whichever is greater.

Sellers will also typically pay estate agent commission, with real estate agents generally charging between 2% and 3% of the sale price. Legal fees for drafting the sale contract and managing the deed transfer usually amount to 1%–2% of the sale price, though these may be negotiated.

Where the property is disposed of within five years of its acquisition, the seller may face a capital gains tax liability on any profit realised — see the dedicated section below. Any outstanding annual property tax (Emlak Vergisi) must be cleared before the title deed transfer can proceed, since unpaid tax constitutes an encumbrance against the property. Verify current seller-side obligations with the Turkish Revenue Administration (GİB).

Is capital gains tax due on property sales in Turkey?

Capital gains tax (CGT) in Turkey is triggered by profits earned from selling real estate within five years of acquisition. Once a property has been held for more than five full years, the seller is entirely exempt from this tax. This five-year exemption compares favourably with many other jurisdictions — in France, for example, full CGT exemption on a secondary property requires 22 years of ownership, and in Australia CGT applies indefinitely (although a 50% discount is available after one year of ownership).

The rate and how the gain is calculated
Where a property is sold within five years of purchase, capital gains tax applies at progressive rates ranging from 15% up to 40%. When CGT is due — that is, where the property is sold in under five years and the profit exceeds the monetary exemption — the taxable gain is calculated by deducting the original purchase price from the sale proceeds. A critical adjustment is then applied: the original purchase price is indexed for inflation using the domestic Producer Price Index (PPI), effectively raising the cost base to reflect the erosion of purchasing power and thereby reducing the taxable profit.

Annual monetary exemption
For 2025, the capital gains tax exemption threshold for property sales stands at 120,000 Turkish Lira, meaning that gains at or below this level attract no CGT. This figure rose from TRY 87,000 in 2024 to TRY 120,000 in 2025 as part of annual inflation-linked adjustments. Always confirm the current year’s threshold with GİB.

How and when to declare
Any CGT liability must be reported as part of your annual income tax return. Tax is typically paid in two equal instalments, generally in March and July of the year following the sale.

Practical example (as of 2025)
A property purchased in January 2022 for TRY 1,500,000 and sold in June 2025 for TRY 3,000,000 falls within the five-year window. However, a property bought in 2020 for TRY 1 million and sold in 2025 for TRY 2 million may have its cost base adjusted upward by as much as 100% for inflation depending on the PPI — in such circumstances the capital gain could be reduced to zero and no tax would be owed. Given Turkey’s elevated inflation environment, the PPI-based cost base adjustment can substantially reduce or even eliminate any taxable gain. Consult a Turkish tax adviser to run the numbers for your specific transaction.

Non-residents
Foreign investors are liable for capital gains tax on Turkish assets, though double taxation treaties between Turkey and other countries may provide relief or reductions. Turkey maintains an extensive network of double tax agreements — verify whether your country of tax residence has a treaty in force via the GİB website.

Are annual property taxes levied in Turkey?

Emlak Vergisi is an annual tax that every property owner in Turkey — including private individuals, corporate entities, and foreign nationals — is required to pay. Municipalities use the revenue to fund local infrastructure and public services. In function this resembles council tax in the UK or rates in Australia and New Zealand, though the sums involved are considerably lower.

Rates
Tax rates vary according to the type and location of the property. Residential properties are taxed at 0.1% in smaller municipalities and 0.2% in metropolitan areas. Commercial properties attract rates of 0.2% in smaller localities and 0.4% in major urban centres. Agricultural land is taxed at 0.2%, while land zoned for construction carries a rate of 0.6% in larger municipalities.

Tax base
Property tax is computed on the “cadastral value” of the property, which tends to be considerably lower than the market value — a factor that keeps annual property tax bills in Turkey quite affordable by international standards. One of the most consequential recent policy changes is the gradual transition away from municipal values, which have historically been as much as 60% below market value, toward a system based on current market valuations. Owners in major cities such as Istanbul and Antalya should anticipate rising annual bills as this reform takes effect — always confirm the assessed value currently applied with your local municipality.

What does it cost in practice?
As of early 2026, property owners in Turkey can generally expect annual Emlak Vergisi bills of roughly 2,000 to 8,000 Turkish Lira (approximately $57 to $230 / €53 to €210) depending on property value and location, with metropolitan areas attracting double the base rate. For context, a standard apartment owner in the USA might pay upward of $2,000 a year in property tax, and typical residential contributions in Spain or Germany range from €600 to €1,200 annually — whereas the average Turkish owner pays around $100 per year.

High-Value Residence Tax (Değerli Konut Vergisi)
A supplementary tax applies to residential properties valued above 12.88 million TL for 2025. The levy is progressive: 0.3% on properties valued between 12.88 million TL and 16.15 million TL; 0.6% on those between 16.15 million TL and 32.3 million TL; and 1% on any property valued above 32.3 million TL. These thresholds are revised annually — confirm the current figures with the Revenue Administration (GİB).

Payment
Emlak Vergisi is settled in two equal instalments each year: the first between the start of March and the end of May, and the second throughout November. Payments may be made in person at municipal collection offices, through participating banks, or online via the e-Devlet portal or official municipal websites.

How is rental income from Turkish property taxed?

Rental income tax (Emlak Kira Geliri Vergisi) in Turkey is levied on property owners at progressive rates. Foreign nationals, like Turkish citizens, are entitled to let out real estate on a long-term basis. Rental income is classified as personal income and taxed under Turkey’s progressive income tax bands — structurally similar to the treatment of property lettings income in Germany or the Netherlands, though the applicable rates and thresholds differ.

Exemption threshold
As of early 2026, rental income from residential property benefits from an annual exemption threshold of approximately 47,000 Turkish Lira (around $1,340 / €1,235). Income below this level is not subject to tax for individual landlords, though a declaration may still be required in certain circumstances. The threshold is updated annually — check the current figure with GİB.

Deductible expenses
Turkey permits a range of deductions against rental income, including mortgage interest on commercial properties, maintenance costs, repair expenses, property management fees, insurance premiums, and agent commissions. Landlords may choose either a flat 15% expense deduction (for which no supporting receipts are required) or actual documented expenses such as repairs, insurance, and depreciation if these exceed that percentage. Following the 2025 tax amendments, interest deductions on residential mortgage loans are no longer available — only loans secured against commercial property retain this benefit. Confirm which items are deductible in your specific situation with a qualified local tax adviser.

Reporting obligations
Rental income must be declared annually via a tax return submitted in March for income earned during the preceding year. Rental contracts require official registration with local authorities, and landlords must receive rental payments through traceable banking channels.

Short-term rentals (Airbnb and similar platforms)
Legislation enacted in 2017 restricts short-term rental activity to licensed legal entities — individual property owners are therefore not permitted to offer short-term lets directly. New regulatory requirements mean that Turkish property investors who wish to rent via Airbnb must register with the tax office, hold a Turkish bank account, and file annual returns. Any individual owner wishing to engage in short-term letting must do so through a licensed operator. Non-compliance carries the risk of substantial penalties. Seek current legal advice before listing any property on a short-term rental platform.

Does inheritance tax apply to property in Turkey?

Property received through inheritance is subject to tax at rates ranging from 1% to 30%. Turkey’s inheritance and gift tax framework is governed by the Inheritance and Gift Tax Law, which applies to property situated in Turkey regardless of the nationality or domicile of the beneficiary.

Rates and thresholds
Transferring property through inheritance or as a gift triggers an Inheritance and Gift Tax obligation. The rate ranges from 1% to 30%, varying with the assessed value of the property and the relationship between the transferor and the recipient. The tax-free threshold for spouses and children was raised in 2025 to TRY 1,000,000 per heir. For more distant relatives or unrelated recipients, the exemption threshold is significantly lower.

How the tax is paid
Inheritance tax on property transfers is paid over three years in two equal instalments, due in March and November of each year. This instalment arrangement affords heirs greater flexibility than in some other countries — the UK, for instance, generally requires inheritance tax to be settled within six months of the date of death.

Non-residents and foreign heirs
The same Turkish inheritance and gift tax rules apply whether the heir is a Turkish citizen or a foreign national; the decisive factor is that the property is located in Turkey. Non-residents should investigate whether their home country has a tax treaty with Turkey to prevent double taxation. Turkey has concluded double tax agreements with a large number of countries — consult the GİB treaty list and seek qualified tax advice for your specific circumstances.

Does gift tax apply to property transfers in Turkey?

In Turkey, gifts and inheritances are governed by the same legislative framework — the Inheritance and Gift Tax Law. Both types of transfer are subject to progressive taxation, with the amount payable determined by the cadastral value of the property. A higher overall value does not mean the top rate applies to the entire sum; instead, the taxable amount is divided into value-based tiers, with a distinct rate applied to each tier.

Gift tax rates span from 1% to 30% of the property’s cadastral value. Transfers between close family members — spouses, children, and parents — attract the lowest rates and qualify for the most generous exemption thresholds. Gifts to unrelated parties are subject to higher rates and smaller exemptions. As with inheritance, the TRY 1,000,000 per-heir threshold for close family members (as of 2025) is relevant in this context. These thresholds are reviewed annually — always confirm current figures with GİB.

Where a property has been gifted and is subsequently sold within five years of the original acquisition, capital gains tax considerations may still apply. The five-year holding period is generally calculated from the date of original acquisition rather than the date the gift was made. Obtain legal advice before gifting property to ensure you fully understand the tax consequences for both giver and recipient.

Are there tax advantages or incentives for buying property in Turkey?

VAT exemption for qualifying foreign buyers
Foreign nationals may be eligible for a VAT exemption when purchasing property for investment or residential purposes, provided they do not dispose of the property within three years. This relief can represent a saving of up to 18% on new-build commercial or larger residential properties. As of 2025, qualifying foreign buyers benefit from this VAT exemption on new-build purchases subject to meeting the relevant conditions. Confirm your eligibility with the developer and your legal adviser before relying on this exemption.

Urban transformation (Kentsel Dönüşüm) exemption
Properties formally approved under the Kentsel Dönüşüm (Urban Transformation) programme may qualify for an exemption from the title deed transfer tax under Law No. 6306. This exemption is available only for developments with official Ministry approval and covers the regeneration of buildings that fall below seismic safety standards. For eligible buyers, this can represent a meaningful saving against the standard 4% Tapu Harcı.

Five-year CGT exemption for long-term holders
A property sold after five complete years of ownership attracts no capital gains tax whatsoever, making long-term property investment in Turkey particularly attractive for both domestic and overseas investors. When combined with Turkey’s inflation-adjustment mechanism for the cost base, the effective CGT burden can be very low even for shorter holding periods.

Turkish Citizenship by Investment
Foreign purchasers who acquire property above a specified minimum threshold (currently set at USD 400,000 — verify the current figure with the TKGM and the Ministry of Interior) may apply for Turkish citizenship. While not a tax incentive as such, citizenship status can streamline future property transactions, tax registration, and access to banking and financial services.

Deductions for landlords
The provision allowing a deduction equal to 5% of the acquisition cost of one residential property for five years remains in place under the 2025 tax amendments, offering a useful ongoing deduction for owner-landlords of residential real estate. Commercial landlords may additionally deduct mortgage interest costs. Consult a tax professional to make the most of your available deductions.

Do different rules apply to foreign buyers or non-residents in Turkey?

Foreign buyers are subject to the same purchasing costs as Turkish citizens. There are no additional surcharges or supplementary transfer taxes solely on account of a buyer’s non-citizen or non-resident status. This stands in notable contrast to certain other markets — Australia, for instance, imposes a foreign investment surcharge of up to 8% in some states, and Canada introduced a foreign buyer ban in recent years.

Restrictions on which properties may be purchased
Foreign nationals are broadly permitted to acquire property in Turkey, but certain restrictions exist. Purchases in military zones or particular strategic areas are not permitted for foreign buyers. Country-specific restrictions may also apply, meaning nationals of certain states may face limitations. Always verify with the TKGM whether any restriction applies to you before proceeding.

VAT exemption advantage
As discussed above, qualifying foreign purchasers of new-build property may claim a VAT exemption — a benefit that is not universally available to domestic buyers — provided the property is not sold within three years of purchase.

Tax registration requirements
A Turkish Tax ID (Vergi Numarası) is required for property registration, utility set-up, and rental income declarations. All foreign buyers must obtain one before completing a purchase. It is obtained simply by visiting any local tax office with a valid passport.

Double taxation treaties
Foreign investors are liable for capital gains tax on Turkish assets, though double taxation treaties between Turkey and other countries may offer exemptions or reduced rates. Turkey has concluded treaties with over 80 countries, including Germany, France, the Netherlands, the UK, the US, and many others. Clarify your treaty position with a qualified adviser and consult the GİB treaty database.

Banking and fund transfer compliance
Holding a Turkish bank account facilitates smoother transactions and is required for several official procedures. Foreign buyers must channel purchase funds into Turkey through official banking routes and must be able to demonstrate the foreign origin of those funds. Keep all bank transfer records, as they are required at the title deed transfer stage and may be needed later if you wish to repatriate capital.

Frequently asked questions about property taxes in Turkey

Do I need a Turkish Tax Identification Number to buy property?

Yes. A Turkish Tax ID (Vergi Numarası) is required for property registration, utility set-up, and rental income declarations. You can obtain one from any local tax office (Vergi Dairesi) by presenting your passport. The procedure is straightforward and is typically completed within a single day.

Is there stamp duty on property purchases in Turkey?

Turkey does not levy a standalone stamp duty on property deeds in the manner of the UK or Ireland. The main transaction tax is the title deed transfer tax (Tapu Harcı) at 4% of the declared value, normally divided equally between buyer and seller. Certain notarised documents may carry a minor stamp duty element under the Fees Law, but this is negligible in the context of property transactions.

How do I pay the annual property tax (Emlak Vergisi) if I live abroad?

Payments may be made in person at municipal collection offices, through participating banks, or online via the e-Devlet portal or official municipal websites. Many overseas owners arrange payment through an authorised representative or a property management company based in Turkey. Late payment attracts a delay interest charge of 4.5% per month for 2025 — ensure bills are settled on time and confirm the current penalty rate with your municipality.

Can I avoid capital gains tax by declaring a lower sale price on the deed?

It is not uncommon in Turkey for the declared sale value on title deeds to be lower than the sum actually paid, often with the aim of reducing transfer taxes. However, CGT is assessed on the actual profit generated by the sale, and any discrepancy between declared and true values can give rise to a higher tax liability and potential penalties if identified by the authorities. This approach carries significant legal and financial risk and is not recommended. The true transaction value should always be declared.

Are there any property taxes I need to pay before the annual Emlak Vergisi bill arrives?

Yes — as a new owner, you are required to register with the local municipality for Emlak Vergisi within the year of purchase. If you bought a property in 2024, your obligation to pay property tax on that asset begins from 2025. You should register proactively rather than waiting for a bill to be issued. Any outstanding tax must be cleared before the property can subsequently be sold.

Does Turkey tax worldwide property income for residents?

Turkish tax residents are generally liable for tax on their worldwide income, including rental income derived from property held abroad. Non-residents are taxed only on income with a Turkish source. If you become a Turkish tax resident by spending more than 183 days per year in Turkey, you should take advice on how your global property portfolio will be treated and whether any double tax treaty relief is available. Consult the Turkish Revenue Administration (GİB) or a qualified local tax adviser.

Is short-term rental via Airbnb legal for individual property owners in Turkey?

Legislation passed in 2017 restricts short-term rental activity to licensed legal entities, meaning only companies holding a special licence may lawfully offer short-term rentals in Turkey. Individual property owners who wish to engage in short-term letting must do so through a licensed operator. Operating without a licence exposes owners to significant financial penalties. Check the current regulatory position with a locally qualified lawyer before listing any property on a short-term rental platform.

Will my home country also tax the sale of my Turkish property?

The answer depends entirely on your country of tax residence and whether it has a double taxation treaty with Turkey. Foreign investors are subject to capital gains tax on Turkish assets, but double taxation agreements between Turkey and other countries may provide exemptions or reduced rates. In many treaty jurisdictions, tax paid in Turkey can be offset against any liability arising at home, preventing double taxation. You should consult a tax adviser in both Turkey and your country of residence before proceeding with a sale.