Buying or owning property in Turkey comes with a number of tax obligations. Whether you are a foreign investor, a holiday home buyer, or an international landlord, you must understand the applicable real estate taxes in Turkey to avoid penalties, ensure compliance, and plan your investment returns. At ER&GUN&ER, our English Speaking Turkish Lawyers provide tailored legal and tax consultancy for foreigners engaged in Turkish real estate. This guide outlines all taxes you may face—from purchase to annual ownership and eventual resale.
1. Title Deed Transfer Tax (Tapu Harcı)
When purchasing property, a 4% title deed transfer tax is payable to the Land Registry. This tax is typically split between buyer and seller (2% each) by mutual agreement, though the buyer often bears the full amount in practice.
- Based on the declared sale price or official valuation—whichever is higher
- Must be paid before the title deed is transferred
- Paid at the Land Registry via bank transfer
2. Annual Property Tax (Emlak Vergisi)
Every property owner in Turkey must pay annual real estate tax to the municipality. Rates vary:
- Residential property: 0.1% – 0.2%
- Commercial property: 0.2% – 0.4%
- Land: 0.1% – 0.3%
Payment is due in two installments: May and November. Delays trigger interest. Foreigners are not exempt and must register with the municipal tax office upon purchase.
3. Value Increase Tax (Capital Gains Tax)
If you sell your property within 5 years of acquisition, profits are subject to capital gains tax. The gain is calculated as:
Sale Price - Adjusted Purchase Price = Taxable Gain
- Progressive rates from 15% to 40%
- Inflation adjustment applies to purchase price
- No tax if property is sold after 5 years
We advise sellers on timing and reporting to reduce or eliminate this tax legally.
4. Rental Income Tax in Turkey
If you rent out your property in Turkey, you are legally obligated to declare income and pay tax annually. The rates (2024):
- Up to ₺110,000: 15%
- ₺110,001 – ₺230,000: 20%
- ₺230,001 – ₺580,000: 27%
- ₺580,001 – ₺3,000,000: 35%
- Above ₺3,000,000: 40%
You may deduct certain expenses (maintenance, insurance, depreciation) or opt for lump-sum deduction. Annual declarations must be filed by March of the following year.
5. Double Taxation Treaties (DTA)
Turkey has signed treaties with 80+ countries to avoid double taxation. If you pay rental income tax in Turkey, you may deduct it in your home country or receive a tax credit. Our firm helps clients file tax certificates and optimize their tax position globally.
6. Is POA Required for Tax Registration?
If you’re not in Turkey, we can register you with the Tax Office and municipal authorities via Power of Attorney (POA). Our legal team handles all filings, declarations, and payment setups with authorized banks.
Other Costs Foreign Buyers Should Know
- Earthquake insurance (DASK): mandatory for all properties
- Translator and notary fees during Tapu process
- Bank transfer costs for sending money to Turkey
- Currency conversion documentation (Döviz Alım Belgesi)
Real Cases from Our Clients
- 🇬🇧 British landlord underreported rental income—we corrected declarations and avoided penalties
- 🇩🇪 German investor sold property after 6 years—no capital gains tax paid
- 🇺🇸 U.S. citizen earned €1,200/month from apartment—declared under DTA and avoided double taxation
Frequently Asked Questions (FAQs)
- Is there a tax on owning property annually? Yes. Annual municipal tax applies, paid in two parts each year.
- Can I sell my property without paying capital gains tax? Yes, if 5+ years have passed since you acquired it.
- Are foreign property owners treated differently? No. All owners are subject to the same tax laws regardless of nationality.
- How can I declare rental income from abroad? We register you with the Tax Office and file returns via POA and e-devlet system.
- What if I don’t pay Tapu transfer tax? You cannot register ownership. Without payment, Land Registry won’t process the transfer.
- Do I have to file tax if I don’t rent out the property? No rental income = no income tax—but annual property tax still applies.
- What if I inherit property in Turkey? Inheritance tax will apply. See our inheritance guide for full details.
- Is there VAT (KDV) on real estate purchases? Usually no for secondary market, yes for new-builds from developers—rate varies from 1% to 18% depending on size and location.
- Can I deduct expenses from rental income? Yes. You can itemize costs or choose lump-sum deduction (15%).
- Do I need a Turkish bank account to pay taxes? Not always—but it simplifies payments and official communications.
Conclusion: Tax Clarity Equals Investment Confidence
Understanding real estate taxes in Turkey is key to maximizing your investment and avoiding penalties. At ER&GUN&ER, our English Speaking Turkish Lawyers offer full tax compliance support—from Tapu registration to rental declarations and capital gains planning. Contact the Best Lawyer in Turkey today to keep your Turkish real estate portfolio legally protected and financially optimized.