How do property taxes work in Turkey?

When buying, owning and selling property in Turkey, you need to take into account a number of taxes governed by local legislation. Property taxes here are relatively low compared to most European countries, which makes Turkey attractive to foreign investors. Let's look at the main types of taxes and how they are paid.

• 1. Taxes when buying property

  1.1. Purchase tax (Tapu Harcı)

  • Rate: 4% of the property's cadastral value.
  • Who pays: This tax is usually split equally between buyer and seller, but in most cases the buyer pays it in full.
  • When it is paid: Before the ownership is registered at the land registry office (Tapu ve Kadastro Müdürlüğü).

  1.2. VAT (KDV)

  • Rate: From 1% to 18%, depending on the type of property.
  • Exemptions for foreign buyers: If the purchase is made in foreign currency and the property is being bought for the first time, VAT may not be charged.

  Calculation example:

  If you buy an apartment with a cadastral value of $100,000, the purchase tax will be $4,000.

• 2. Annual taxes on property ownership

  2.1. Property tax (Emlak Vergisi)

  • Rate:
    • 0.2% of the cadastral value for residential property in large cities.
    • 0.1% for residential property in smaller towns.
  • When it is paid: Annually, in two installments (by May 31 and November 30).
  • How it is paid: Through the municipality where the property is located or via online platforms.

  2.2. Aidat

  • What it is: A monthly fee for maintaining the residential complex.
  • Amount: From 20 to 100 euros per month, depending on the complex's facilities (pool, security, sports grounds).
• 3. Taxes when selling property

  3.1. Capital gains tax (Gelir Vergisi)

  • When it applies: If the property is sold within 5 years of purchase.
  • Rate: Progressive, from 15% to 35% on the difference between the purchase and sale price.
  • Exemption: If the property has been owned for more than 5 years, no capital gains tax is charged.

  Calculation example:

  If you bought a property for $100,000 and sold it for $120,000 within 3 years, the tax is charged on the difference of $20,000.

• 4. Tax on rental property

  4.1. Rental income tax (Kira Gelir Vergisi)

  • When it applies: If you rent out your property.
  • Rate: Progressive, from 15% to 40%, depending on the amount of income.
  • Allowance: Individuals have a tax-free amount of about $5,500 per year.

  How it is calculated:

  • Deduct the property's upkeep costs (repairs, aidat) from the income.
  • Tax is charged on the remaining amount.
• 5. Additional costs

  5.1. Property insurance (DASK)

  • Mandatory: For all property owners.
  • Cost: Depends on the size and location of the property, on average 20–50 euros per year.

  5.2. Utilities

  • Transfer of contracts: When buying property, water, electricity and gas must be registered in the new owner's name. This is a one-time payment of about 150–200 euros.
• 6. How does our company help with taxes?

  Our team at "SIPwall Real Estate" provides:

  • Advice on taxes and how they are calculated.
  • Help obtaining a tax number (Vergi Numarası).
  • Support with paying taxes and annual fees.
  • A full legal check of the property before purchase to avoid hidden taxes or debts.
• Conclusion

  Property taxes in Turkey are relatively low and transparent, and with the right approach to the paperwork, buying and owning property becomes as comfortable as possible. We will help you understand every detail and support you at every stage of the transaction.

Planning to buy property in Turkey? We will help you compare regions and properties to suit your goals. Write to us: mail@sipwall.estate