Property taxes in Turkey – updated for 2026

One of the most common questions foreign buyers ask Pera Property is how property tax in Turkey works. Buyers want to understand what they pay at purchase, what annual costs apply, and what taxes may arise when renting or selling property later.

This guide explains the main property taxes and buyer costs in Turkey, including title deed transfer tax, VAT, annual property tax, rental income tax, capital gains tax, inheritance tax, stamp duty, DASK insurance and tax identification requirements.

A Comprehensive Tax Guide for Buying Property in Turkey

1. Title Deed Transfer Tax

When buying property in Turkey, the title deed transfer tax, known as tapu harcı, is one of the main purchase costs. It is generally calculated as 4% of the officially declared sale value. Although legally described as shared between buyer and seller, in practice the buyer may be asked to cover the full amount depending on the agreement.

• When it is paid: before the title deed transfer appointment.
• Where it is paid: through the Land Registry payment system.
• Additional fee: buyers should also budget for the revolving fund / administration fee known as döner sermaye.
• Important note: under-declaring the sale value can create legal and tax risk.

2. Value Added Tax on Property

VAT, known in Turkey as KDV, can apply when buying new property, especially where the seller is a developer or commercial entity. VAT does not usually apply to ordinary resale property sold by an individual owner.

VAT treatment can vary depending on the property type, size, classification, seller status and whether the buyer qualifies for an exemption.

3. Annual Property Tax

Once you own property in Turkey, annual property tax is usually paid to the local municipality. The amount is based on the municipality’s assessed value rather than the full market value.

• Residential property: commonly taxed at a lower municipal rate.
• Commercial property: usually taxed at a higher rate than residential property.
• Land: rates vary depending on classification and location.
• Payment timing: usually paid in two instalments during the year.

4. Rental Income Tax

If you rent out property in Turkey, rental income may be subject to income tax. Turkey uses progressive income tax rates, and residential rental income may benefit from an annual exemption threshold that changes each year.

• Declaration period: generally filed for income earned in the previous year.
• Deductions: owners may be able to deduct certain expenses depending on the tax method chosen.
• Foreign owners: non-residents should also consider double taxation agreements and reporting obligations in their home country.

5. Capital Gains Tax on Property Sales

If an individual sells property in Turkey within five years of purchase, capital gains tax may apply. If the property is held for more than five years, individuals may often benefit from an exemption, subject to the specific circumstances.

• Taxable gain: calculated on profit, not the full sale price.
• Inflation adjustment: acquisition cost may be adjusted, reducing the taxable gain.
• Timing: tax is generally declared after the sale if a taxable gain exists.

6. Inheritance and Gift Tax

Property transferred through inheritance or gift may be subject to inheritance and gift tax in Turkey. The applicable rate depends on the property value and the relationship between the parties.

• Family transfers: close relatives usually benefit from lower rates than unrelated parties.
• Payment: tax may be payable in instalments depending on the case.

7. Stamp Duty for Purchase Agreements

Stamp duty may apply to certain written agreements, especially notarised contracts or structured developer sales. This is not always relevant for a straightforward resale purchase, but it can become important in off-plan purchases.

• Institutional sellers may require notarised contracts.
• Notarised contracts may be useful when completion is not immediate.
• Buyers should confirm stamp duty exposure before signing.

8. Additional Buyer Costs

Alongside property taxes, buyers should budget for practical purchase costs.

• Agency commission: commonly charged as a percentage of the sale price.
• Valuation report: usually required for foreign buyers.
• Notary and translation fees: relevant where documents need sworn translation or notarisation.
• DASK insurance: compulsory earthquake insurance required for ownership and utility registration.
• Utility subscriptions: electricity, water, gas and internet setup costs may apply after purchase.

9. Turkish Tax Identification Number

Foreign buyers need a Turkish tax identification number before completing many property-related transactions. This number is required for opening a bank account, paying taxes, signing certain official documents and completing the title deed process.

A tax number can usually be obtained from a local tax office or online using a valid passport.

10. Residency and Turkish Citizenship by Investment

Property buyers may also be interested in Turkish residence permits or citizenship by investment. Real estate investment can support certain applications, but thresholds, rules and eligible property conditions should be checked carefully before purchase.

Foreigners investing at least $400,000 in qualifying real estate may be eligible to apply for Turkish citizenship by investment, provided the legal conditions are met.

Tax Considerations for Foreign Investors

For foreign investors, understanding property tax in Turkey is essential before making a purchase. Taxes affect acquisition cost, rental profitability, resale planning and inheritance strategy.

The safest approach is to review the tax position before signing a reservation agreement or sales contract. A good real estate consultant can help estimate purchase costs clearly, while formal tax advice should always come from a qualified accountant or lawyer.

Frequently Asked Questions About Property Tax in Turkey