The tax landscape in Turkey involves a distinct set of obligations that differ from what buyers in many other countries are used to — a title deed fee at purchase, VAT on some new builds, an annual property tax, and a capital gains tax that applies only to property sold within five years. For anyone evaluating buying a house in Turkey, it helps to know these costs before signing a purchase agreement. The rates below are the 2026 figures. The Turkey property tax calculator applies them to a specific price, and our guide to the associated costs of buying property in Turkey covers the non-tax items.
The Purchase Moment: Title Deed Fee (Tapu Harcı)
Every property sale in Turkey triggers a title deed fee, paid at the land registry when the transfer is registered. The rate is 2% of the taxable value for the buyer and 2% for the seller, 4% in total. By law each side is liable for its own 2%; the parties may agree in writing that one side bears both, but the statutory liability does not change. The 2% rate has been in use since 2012 and did not change for 2026, and the Land Registry (TKGM) guide for foreign buyers also states 2% per side. The title office charges a separate service fee (döner sermaye) as well: an indicator of TRY 2,227 for 2026 multiplied by a local coefficient between 0.30 and 3.00, which gives about TRY 668 to TRY 6,681 for one flat.
The taxable value matters. Under Law 7566, published on 19 December 2025, the base is the declared price, but not less than the municipal property-tax value. Where the fee was paid on too low a figure, the tax-loss penalty on the difference is now 100% instead of 25%. Under-declaring the price is therefore a risk rather than a saving, and a lower declared price also raises the gain when the property is later sold.
Ongoing Ownership: Annual Property Tax
Owners pay an annual property tax (emlak vergisi) to the local municipality. The rates are set by law: 0.1% of the tax value for a residence and 0.2% for other buildings, doubled to 0.2% and 0.4% inside metropolitan municipalities. The tax value is assigned by the municipality and is not the market price. For example, a residence with a tax value of TRY 3,000,000 pays TRY 3,000 a year, or TRY 6,000 in a metropolitan municipality. Payment is in two equal instalments, the first between March and May and the second in November.
Three further points apply in 2026. Law 7566 caps the 2026 tax value at a “two-fold excess” of the 2025 value (commentators read this as two or three times), and from 2027 values are due to rise by the full annual revaluation rate instead of half. Residences with a tax value above TRY 17,711,000 also pay a high-value residence tax of 0.3% to 1.0% on the excess. Owners also pay an environmental cleaning tax on the water bill of TRY 4 per m³ in metropolitan municipalities and TRY 3 elsewhere.
The Five-Year Capital Gains Rule
A gain on a property sold within five full years of acquisition is taxable as a value-increase gain (değer artış kazancı) under Income Tax Law article 80. A sale after five years falls outside this tax, as does property acquired by inheritance or gift. The net gain is the sale price minus the indexed cost and the expenses and taxes the seller bore. The first TRY 150,000 of a year’s gains is exempt in 2026 (TRY 120,000 in 2025), and the rest is taxed on the income tax scale: 15% up to TRY 190,000, 20% up to TRY 400,000, 27% up to TRY 1,000,000, 35% up to TRY 5,300,000 and 40% above that. A seller who trades property frequently can be taxed as a trader instead.
According to the Revenue Administration (GİB) brochure, the cost is multiplied by the domestic producer price index (Yi-ÜFE) of the month before sale divided by the index of the month before acquisition, but only if the index rose by 10% or more; otherwise the nominal cost is used. In GİB’s worked example a cost of TRY 1,000,000 becomes TRY 3,946,404 (multiplied by 2,105.17 / 533.44). Residents declare the gain on the annual return filed in March of the following year; a non-resident who files no annual return reports it on a separate declaration within 15 days of the date the gain is realised.
Rental Income Tax
Rent from a Turkish property is taxed as income and declared on an annual return filed in March of the following year, with the tax paid in two instalments. For rent received in 2026, TRY 58,000 of residential rent is exempt (TRY 47,000 for 2025 income), unless the owner’s other income is above the limit for the exemption; workplace rent has no exemption. The rest is taxed after deducting either documented expenses or a flat 15% of the rent, on the same scale as above, and the flat method binds the owner for two years. When the tenant is a withholding agent, such as a company, 20% is withheld from the gross rent; fully withheld rent needs no annual return, while a non-resident files a return for untaxed rent or for residential rent above the exemption. These points follow a 2026 guide for non-resident taxpayers.
VAT on New Builds and the Exemption for Foreign Buyers
A new home delivered by a developer carries VAT in the developer’s invoice. For homes whose building permit is dated after 1 April 2022, the rate is 10% on the first 150 m² of net area and 20% on the part above that, since the rates were raised on 10 July 2023. A sale by a private individual who does not trade property is normally outside VAT, so the title deed fee is the main transfer cost on a resale.
A separate exemption (VAT Law article 13/1-i) can apply to the first delivery of housing by a builder to a non-resident foreign individual. According to a law-firm summary dated February 2024, the conditions include that at least 50% of the price is brought in as foreign currency before the invoice date and that the deed carries a three-year no-sale annotation. We found no repeal, but the summary is not recent, so the current text should be confirmed with a Turkish lawyer before a buyer relies on it.
Rules and Costs Specific to Foreign Buyers
Foreign individuals can buy property without a residence permit, and the reciprocity requirement has been abolished. According to the Land Registry guide, a foreign individual may own up to 30 hectares nationwide, and purchases inside military prohibited or security zones are not allowed, which the title office checks with the garrison. Foreign companies generally cannot buy, with exceptions.
The title office asks for a passport, the municipal value certificate, a compulsory earthquake (DASK) policy, a sworn interpreter if a party does not know Turkish, and an apostilled and translated power of attorney if a party is represented. A valuation report from an SPK-licensed valuer is also required for sales to foreigners, and the declared price may not be lower than its value. The SPK minimum tariff for a unit up to 250 m² is TRY 17,622 plus VAT, and press reports say reports for foreigners are charged at up to twice that, so treat the figure as indicative. A notary fee of 0.1% of the value (minimum TRY 500, maximum TRY 4,000) applies only if a contract is signed at a notary, because the title deed sale itself is signed at the registry. From 1 December 2026 a safe payment system becomes mandatory for sales where any part of the price is paid in cash or by bank transfer; a usage fee, not yet published, is deducted from the seller’s proceeds.
Inheritance and Gift Tax Considerations
Property passed on by inheritance or gift is subject to Turkish inheritance and gift tax (veraset ve intikal vergisi), which has its own rate scale and exemptions and is separate from the taxes above. Such a transfer is also outside the five-year capital gains rule. We have not verified the current inheritance and gift tax rates, so they should be confirmed with an advisor, particularly where heirs live abroad.
Tax Residency: A Separate Question From Property Ownership
A common point of confusion is assuming that owning Turkish property automatically creates Turkish tax residency. It does not. Under Income Tax Law article 4, Turkish tax residence arises from having a domicile in Turkey or staying there for more than six months in a calendar year, and owning a property does not create it by itself. A foreign owner who visits their Turkish property periodically without crossing this threshold remains liable only for the property-specific taxes described above (title deed fee, annual property tax, capital gains on sale, and tax on any rental income), without becoming subject to Turkish tax on their broader worldwide income. This distinction is worth discussing explicitly with a tax advisor, particularly for buyers also considering a Turkish residence permit tied to their property, Residence permit status and tax residency status are assessed under entirely different criteria. Press reports put the property route to a short-term residence permit at a deed price of at least USD 200,000 (for deeds since 16 October 2023); the legal basis is Law 6458 article 31.
Financing and Its Tax Implications
Financing does not change the underlying obligations described above — the title deed fee, annual property tax and any capital gains tax apply whether a purchase is cash or financed. Whether loan interest can be set against rental income depends on the expense method chosen (documented expenses or the flat 15%, which cannot be combined with itemised costs), so buyers planning to finance a rental property should confirm the treatment with a Turkish tax advisor rather than assuming home-country rules apply.
Tax Treatment by Purchase Stage: A Timeline
- At purchase: Title deed fee of 2% for the buyer and 2% for the seller, plus the title-office service fee; VAT is included in the price of a new build.
- Annually thereafter: Property tax to the local municipality on the tax value, paid in two instalments, plus the environmental cleaning tax on the water bill.
- If rented: Annual rental income return, with a choice between documented expenses and the flat 15% deduction after the TRY 58,000 residential exemption.
- At sale, within five years: Tax on the indexed gain above the TRY 150,000 annual exemption (2026).
- At sale, after five years: Outside the value-increase gains tax.
- At inheritance or gift: Inheritance and gift tax under its own rules.
Double Taxation Treaties
Turkey maintains double taxation avoidance agreements with a substantial number of countries, designed to prevent the same income or gain being taxed twice — once in Turkey and again in the owner’s home country. These treaties typically operate either by exempting certain income in one jurisdiction or by allowing a tax credit in the home country for tax already paid in Turkey, and the specific treatment depends heavily on the buyers country of tax residency and the type of income involved (rental income, capital gains, and inheritance are often treated differently even within the same treaty). Buyers should check whether their home country has an active treaty with Turkey and seek guidance from an advisor familiar with both jurisdictions rather than assuming any particular treatment applies automatically.
A Practical Example
The gain is calculated in Turkish lira, not in the buyer’s own currency. Take GİB’s published example: a cost of TRY 1,000,000 is indexed by 2,105.17 / 533.44 to TRY 3,946,404. If the property is sold within five years, the indexed figure, not the nominal TRY 1,000,000, is set against the sale price, and the seller’s expenses and the TRY 150,000 annual exemption (2026) are then deducted before the income tax scale is applied. If the same property is sold after more than five years, the gain is outside this tax whatever its size. The calculator has a tab that runs these steps with your own figures.
Common Mistakes First-Time Buyers Make
- Assuming property ownership creates Turkish tax residency. These are separate determinations, as covered above.
- Using the nominal gain for the five-year rule. The cost is indexed when the producer price index has risen by 10% or more, and the first TRY 150,000 of annual gains is exempt, so a simple nominal calculation can overstate the tax.
- Under-declaring the purchase value to reduce the title deed fee. Since December 2025 the base cannot be below the municipal tax value, the penalty on the difference is 100%, and a lower price also raises the gain on a later sale.
- Treating the annual property tax rate as a local choice. The rates are set by law (0.1% for a residence, doubled in metropolitan municipalities); the municipality assigns the tax value.
- Assuming how loan interest is treated for rental income without checking; the answer depends on the expense method used and should be confirmed with an advisor.
Working with Local Professionals
Given the interplay between the title deed fee, ongoing property tax, capital gains timing and double taxation treaties, foreign buyers commonly work with a local lawyer for the purchase and a tax advisor familiar with both Turkish tax law and their home-country obligations. Rates and exemption amounts are revised each January, so figures should be checked against the current year before a decision.
What to Ask a Tax Advisor Before Buying
- What is this property’s municipal tax value, and how does it compare with the purchase price, since it sets both the base of the title deed fee and the annual tax?
- Does my planned holding period fall inside or outside the five-year capital gains rule, and how would the cost be indexed?
- Does this purchase qualify for the foreign-buyer VAT exemption, and what do I need to do to keep that status?
- If I plan to rent the property, should I use the flat 15% deduction or documented expenses?
- Does my home country have an active double taxation treaty with Turkey, and how does it treat rental income, capital gains, and inheritance specifically?
Frequently Asked Questions
Which taxes apply when buying a house in Turkey?
A title deed fee of 2% for the buyer (the seller pays another 2%), VAT included in the price of a new build from a developer (10% on the first 150 m² of net area, 20% above), an annual property tax of 0.1% of the tax value for a residence (0.2% in metropolitan municipalities), and, on a later sale, a gains tax if the sale is within five years.
Is the annual property tax in Turkey high?
It is calculated on the municipal tax value, not the market price. At 0.1% for a residence, a tax value of TRY 3,000,000 gives TRY 3,000 a year, or TRY 6,000 in a metropolitan municipality.
Does owning property make me a Turkish tax resident?
No. Tax residence is determined separately: it arises from a domicile in Turkey or a stay of more than six months in a calendar year, regardless of property ownership.
Can I avoid capital gains tax?
A sale more than five years after acquisition is outside the value-increase gains tax. Within five years, the cost may be indexed and the first TRY 150,000 of annual gains is exempt in 2026.
Are there regional differences in property tax rates within Turkey?
The statutory rates are the same across Turkey, except that metropolitan municipalities double them. The tax value is assigned by the municipality, and the environmental cleaning tax is lower outside metropolitan municipalities.
What happens if I sell my Turkish property to a family member?
A sale to a family member carries the same title deed fee, based on the higher of the declared price and the tax value. A gift is a different transaction under inheritance and gift tax, so the structure should be confirmed with a tax advisor.
Key Takeaways
- The title deed fee is 2% for the buyer and 2% for the seller, on the higher of the declared price and the tax value.
- Annual property tax is 0.1% of the tax value for a residence, doubled in metropolitan municipalities.
- A sale within five years is taxed on the indexed gain above a TRY 150,000 annual exemption (2026); a sale after five years is outside this tax.
- Property ownership alone does not create Turkish tax residency, which depends on a domicile or a stay of more than six months.
- Rent: TRY 58,000 of residential rent is exempt in 2026, then a flat 15% or documented expenses and the progressive scale.
The Bottom Line
Turkey’s property taxes are set by statute and can be worked out before a purchase: the title deed fee, VAT on new builds, annual property tax, rental income tax and the five-year capital gains rule. Rates and exemption amounts are revised each January, and the safe payment system changes the sale process from 1 December 2026. For anyone evaluating property in Turkey, the Turkey property tax calculator and a local advisor can confirm the figures for a specific purchase.
