Obligations to pay Turkey property taxes apply at several stages, from purchasing and owning a property to renting it out and eventually selling it. The relevant tax type may vary depending on how the property is used. Property ownership does not automatically grant Turkish citizenship or change an individual’s tax status.
For investors using property as a route to Turkish citizenship through investment, it’s important to understand the tax implications beyond the minimum investment required to apply for citizenship.
This Global Citizenship Guide breaks down Turkey property taxes across purchasing, ownership, renting out, and selling or transferring ownership to help foreign investors understand what they may be liable to pay when deciding on a property investment.
Turkish Property Tax: Key Takeaways
Property Taxes and Costs at a Glance
| Tax Type | Rate / Rules | When it Applies |
|---|---|---|
| Stamp Duty | 0.948% of the value of the property contract | To certain agreements and documents connected with the property transaction, depending on how the sale is structured. |
| Title Deed Fee (TAPU) | 4% of purchase price (usually split 2% for the buyer & seller) | When ownership of the property is officially transferred and registered at the land registry. |
| VAT on Property | 11% (up to 150 m²) or 18% (larger than 150 m² or commercial real estate) | To qualifying property purchases where VAT is chargeable, with the applicable rate depending on the property & transaction. |
| Annual Property Tax | 0.1%-0.2% (residential properties) 0.2%-0.4% (commercial properties) | Each year of property ownership, with rates depending on the property type and location. |
| Income Tax on Rental Property | 15%-40% based on rental income | When you earn taxable rental income from a property, subject to applicable deductions, allowances, and exemptions. |
| Gift / Inheritance Tax | 1%-30% (depending on the value and the relationship of the inheritor or gift receiver to the deceased or donor) | When property is transferred through inheritance or as a gift, with the amount depending on the value transferred and applicable exemptions. |
Taxes and Fees When Buying Property in Turkey
Title-Deed Fee (Tapu Harcıu)
When purchasing property in Turkey, buyers are liable for a title deed fee (Tapu Harcı) when the property is transferred and registered. Under Law No. 492 on Fees, Article 63 and Schedule No. 4, the fee is calculated on the declared transfer and acquisition price, provided it is not lower than the property’s property-tax value.
- Rate: 4% of the declared property price (typically 2% paid by the buyer, 2% by the seller)
- Base: Municipal assessed property value (not market value)
- Penalties: Under-declaring the property value can result in a 100% penalty on the unpaid tax.
If you’re considering buying property to apply for Turkey Citizenship by Investment, ensure you know about all costs involved and that the property meets all the legal requirements to be eligible for the program.
About the Turkish Title Deed (TAPU)
The TAPU is issued through Turkey’s General Directorate of Land Registry and Cadastre (TKGM) and records the property’s legal ownership. The details of the TKGM registers are also needed when determining the property’s tax and transaction values.
For property transactions, the declared value cannot be below the minimum value recorded by the relevant municipality. For property with multiple owners, the TKGM records each owner’s share and decides the portion of the property relevant for registration and taxes.
The TAPU itself confirms ownership and the registered share in the property; it does not make a lender or mortgage holder a legal owner simply because they have a security interest in the property.
Note
- You should always use official valuations and consult a qualified legal adviser to ensure compliance with Turkish tax law.
- Foreign buyers pay the 4% fee like all others; there is no extra charge for non-citizens.
- If you are purchasing from a developer, the VAT may apply depending on the property type and size. However, some exemptions apply to eligible foreign buyers.
- There is also a one-time closing cost made upon receiving the TAPU. It’s important to include this in your purchase budget.
Value Added Tax (VAT)
Turkey’s Revenue Administration (GİB) applies VAT when buying property in Turkey. This applies to first-delivery new homes or commercial units sold by developers. Article 13/i of Turkey’s VAT Law No. 3065 outlines a first-time buyer’s VAT-exemption for non-resident foreigners and certain Turkish citizens living abroad. VAT-exemption is also contingent on the purchase being made in foreign currency.
When you buy property in Turkey, VAT (KDV) mainly applies to new homes sold by developers. Foreign buyers might qualify for exemptions, but these depend on certain conditions like paying in foreign currency, it being your first purchase, and the property’s type or size. Resale properties usually don’t have VAT unless they’re sold as part of a business.
| Property Type | VAT Rate | When it Applies |
|---|---|---|
| Qualifying residential property, up to 150 m² | 8% or another applicable reduced rate | Depends on the property’s building permit, project characteristics and applicable VAT rules |
| Qualifying residential property over 150 m² | 8% / 18% | Under current rules, the applicable rate can differ between the first 150 m² and the area above 150 m² |
| Commercial property | 18% generally | Standard VAT treatment, subject to specific exemptions or special rules |
| Certain qualifying residential projects | 1%, 8%, or 18% | For certain projects, the applicable rate can depend on the property’s land-tax value per m² and other conditions |
Stamp Duty
Stamp duty (Damga Vergisi) in Turkey is a tax on certain legal documents, such as notarised sales contracts or power of attorney, rather than the property transfer itself. The typical rate is around 0.948% of the value stated in the document.
Annual Property Tax and Local Ownership Charges
When you own property in Turkey, you pay an annual property tax (Emlak Vergisi) to the relevant municipality. The rate is calculated based on the property’s value as determined under Turkey’s property-tax rules, rather than its current market value.
The applicable rate depends on the type of property, with rates generally doubled for properties located within metropolitan municipalities, such as Istanbul.
| Property Type | Metropolitan Municipality | Outside Metropolitan Municipality |
|---|---|---|
| Residential | 0.2% | 0.1% |
| Commercial | 0.4% | 0.2% |
| Land (arazi) | 0.2% | 0.1% |
| Building plots (arsa) | 0.6% | 0.3% |
The annual Emlak Vergisi is paid in two equal installments, with the first due in May and the second in November. The exact amount depends on the property’s tax value and classification.
Rental Income Tax in Turkey
Based on taxes in Turkey, if you rent out property you own, income is subject to progressive non-employment income tax after applying allowable deductions or the standard exemption. Residential rental income benefits from an annual tax exemption, subject to the applicable conditions. The exemption is TRY 58,000 for the 2026 tax year, up from TRY 47,000 for the 2025 tax year.
| Taxable Rental Income (TRY) | Tax Rate |
|---|---|
| Up to 190,000 (~ $3,965) | 15% |
| 190,001 to TRY 400,000 (~ $3,965 to $8,347) | 20% |
| 400,001 to TRY 1 million (~ $8,347 to $28,868) | 27% |
| Above 1 million to TRY to TRY 5.3 million (~ $28,868 to $110,600) | 35% |
| Above 5.3 million (~ $110,600) | 40% |
If an owner sells a property within five years of acquiring it, any capital gain on it may be subject to income tax. Turkey’s Revenue Administration (GİB) confirms that real estate acquired for consideration and released within five years falls within the capital gains tax rules.
The taxable gain is calculated after accounting for the property’s acquisition cost and certain eligible selling expenses and taxes. GİB also allows the acquisition cost to be adjusted for inflation under the applicable conditions.
For a property sold after the five-year period, capital gains may not be charged. GİB specifically states that gains from the transfer of qualifying real estate after five years are not treated as capital gains under this rule.
Gift Tax or Inheritance Tax on Property in Turkey
If you receive property in Turkey through inheritance or a gift, you are subject to the Turkish Inheritance and Gift Tax (Veraset ve İntikal Vergisi). Taxes are progressive and depend on the relationship between the recipient and the property owner. This is particularly important for those who obtain Turkish citizenship by descent who may inherit property from their family.
The exemption amounts and tax rates for 2026 were published in the Official Gazette (General Communiqué No. 57, Resmî Gazete, 31 December 2025, No. 33124).
| Recipient / Category | Exemption Amount (TRY) | Progressive Tax Rate After Exemption |
|---|---|---|
| Each spouse or child (inheritance share) | 2,907,136 (~ $59,800) | 1% – 10% |
| Surviving spouse only (no descendants) | 5,817,845 (~ $120,000) | 1% – 10% |
| Gifts / gratuitous transfers | 66,935 (~ $1,375) | 10% – 30% |
Key points:
- The exemption amount is deducted from the property value before calculating tax.
- Taxes are filed and paid in two installments annually (May and November) over three years.
- Filing deadlines:
- Inheritance: within 4 to 6 months, depending on the location of death
- Gifts: within one month of legal transfer
- For foreign owners, tax applies to property located in Turkey regardless of residency. However, double taxation treaties may reduce overall liability.
Turkey Property Tax Timeline for Foreign Buyers in 2026
| Stage | Tax / Fee | Timing / Rate | Key Notes for Foreign Buyers |
|---|---|---|---|
| Purchase | Title Deed Fee (Tapu Harcı) | 4% of the declared transfer value | Paid when ownership is transferred and registered |
| New Development | VAT (KDV) | Rate depends on property and project | Certain qualifying foreign buyers may benefit from a VAT exemption |
| Purchase / Contract | Stamp Duty (Damga Vergisi) | Varies by document; 0.948% for certain contracts | Depends on the type of document. It should not automatically apply to every notarized property agreement. |
| Ownership | Annual Property Tax (Emlak Vergisi) | Typically 0.1%–0.6%, depending on property type and location | Based on the property’s tax value rather than its market value. |
| Rental | Rental Income Tax | Progressive income-tax rates | As of 2026, qualifying residential rental income has an annual exemption of TRY 58,000. |
| Sale / Exit | Capital Gains Tax | Progressive income-tax rates where applicable | For individuals, gains from property acquired and sold within 5 years may be taxable. Certain deductions can apply. |
| Sale / Exit | Capital Gains Exemption | Typically applies after more than 5 years | For individuals, property sold more than 5 years after acquisition typically avoids capital- gains tax |
Foreign Ownership, Residence, and Citizenship
Foreigners can purchase property in Turkey without first holding a Turkish residence permit, although nationality, location, and other restrictions can apply to property ownership. Turkish real estate investment can also provide a basis to apply for residency if the property is a qualifying home used for residential purposes, subject to approval by Turkish authorities.
Property can also be a criterion for obtaining Turkish citizenship through investment. The country’s program requires a real estate investment of at least $400,000, with the condition that it be held for at least three years after obtaining citizenship. Property taxes and fees will also apply to the purchase.
Buying property is not the only criterion to be eligible to apply for citizenship; consulting a Turkish citizenship lawyer can help prospective buyers understand the additional requirements, documentation, and process to ensure a successful application.
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