A home in Turkey comes with an annual municipal tax bill. Buying, renting out, selling or passing the property to someone else can bring other taxes and fees. Knowing which payment belongs to which stage makes it easier to budget, particularly as allowances and thresholds depend on the tax year.
Annual property tax
Annual property tax is paid to the municipality where the property is registered. It uses the assessed tax value, not simply the purchase price. The standard rates below are doubled within metropolitan municipality boundaries and adjacent areas, as shown.
Outside metropolitan areas / Within metropolitan areas:
Residential buildings: 0.1% / 0.2%
Other buildings, including commercial premises: 0.2% / 0.4%
Land (arazi): 0.1% / 0.2%
Building plots (arsa): 0.3% / 0.6%
The first instalment is normally payable during March–May and the second in November. Ask the municipality for your current assessment and any additional charges. Specific reductions or exemptions can change the amount due.
Selling a property
For an individual who sells a property bought within the previous five years, the gain may be subject to income tax. The calculation takes account of permitted acquisition-cost indexation, eligible expenses and the relevant year’s exemption. Progressive income-tax bands apply, rather than a flat 15% rate. Inherited or gifted property and sales carried out as a business have separate rules.
Declaring rental income
Rental income may require a return, usually in March of the following year. The amount taxed depends on eligibility for the residential allowance and the expense method used. Rates rise progressively from 15% to 40%. Use the bands and allowances for the year the income was earned, even when you file in the next calendar year.
Inheritance and gifts
The ordinary inheritance-tax scale runs from 1% to 10%; gifts generally follow a 10%–30% scale. Qualifying gifts from parents, a spouse or children use half the gift rates. The actual bill also depends on allowances, valuation, annual brackets and any special provisions applying to the transfer.
The fee when ownership changes
In an ordinary sale, the statutory title deed transfer fee is 2% for the buyer and 2% for the seller, making 4% in total. Put any agreement about sharing this cost in writing. Land Registry service charges are separate.
Does the purchase price include VAT?
VAT treatment depends on the transaction, the property, its permit history and the applicable rules. Have the seller confirm whether VAT is due and included in the advertised price. A qualifying non-resident buyer may obtain an exemption on the first delivery of a home or workplace, with documentation, foreign-currency payment and holding conditions to meet. Nationality alone does not establish entitlement.
Keeping municipal payments in order
After purchase, confirm the municipality’s registration and notification requirements. Before paying, check the property details, assessed value, tax period and balance. Payment may be possible through the official municipal website, supported banking channels or in person. Keep the receipt. A Turkish bank account can help with regular payments, although the options differ by municipality.
What foreign owners should know
Foreign ownership does not provide a general exemption from annual property tax. Municipal relief and a VAT exemption are separate arrangements. Your country of tax residence may also have reporting requirements. The Turkish Revenue Administration’s guidance is a useful reference; an adviser can calculate what applies to your own circumstances.
Plan the costs of your future home
Tell us where you would like to buy and how you will use the property. We can gather the property-specific expenses for your budget, while your tax adviser confirms the treatment that applies to you.
TERRA Real Estate ® is a licensed real estate company operating since 2004, holding the Official Authorization Certificate for Real Estate Transactions issued and supervised by the Turkish Ministry of Commerce.
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If you are already in the area, we can arrange free, no-obligation viewings and pick you up from your accommodation by appointment.