Turkish Property Port

Main Taxes Related To Buying Property in Turkey

It’s important to understand the tax situation in Turkey, before you buy Turkish property. Firstly, you will need a tax number for all property acquisitions. You can obtain a tax number by applying to any tax office, together with a copy of your passport (translated and certified by a public notary).

When you buy property in Turkey, you’ll be subject to transaction taxes such as “Title Deed Fee”, “Value Added Tax”, “Stamp Duty,” and “Notary Charges”. Additionally, holding a property in Turkey automatically makes you subject to “Property tax.” If you’re deriving any rental income from the property such as rental income or if you decide to sell your property, you’ll be subject to “Income tax”. Each of these taxes has specific rules regarding calculation, payment and declaration, as well as certain exemptions.

Title Deed Fee

Before concluding your purchase at the title deed registry, you will be required to pay the Title Deed Fee, which is calculated for all transactions such as property buying or selling, registration of rental contract, annotations of any transaction made at the registry. Both the buyer and seller are separately subject to 2,2% tax over the sales price, payable at the tax office.

Value Added Tax  (VAT)

Turkish tax law states that all commercial, industrial and professional transactions made in Turkey are subject to VAT or KDV in Turkish. However, under the following circumstances, the property will be VAT exempt.

- If the seller/owner of the property does not deal with any commercial activity

- If the seller of the property is a company not in the real estate trading business and has held the property for more than two years.

VAT is 18% and property sales including office, residential properties, land acquisitions etc. are all subject to this tax calculated over the sales price. Different VAT rates exist for residential properties fulfilling certain conditions. Rates at 1% and 8% also exist for residential units with a net area less than 150 sqm with some additional conditions. Residential units with a net area of more than 150 sqm and all other properties in Turkey are subject to 18% VAT.

Stamp Duty

The sale agreement for a property is subject to 0.948% stamp duty over the highest monetary value stated or referred in the agreement. Leasing agreements are subject to stamp duty of 0.189%. Both the seller and buyer are held mutually liable for the payment of the stamp duty.

Property Tax

An annual property tax, rated between 0.1% and 0.6% of the property value, must be paid before the end of May each year. Contribution to the Conservation of Immovable Cultural Property is levied at a rate of 10% of this real estate tax.

Property Tax

Residential unit

Commercial unit

Arable lands

Other lands

Ordinary Regions

1%

2%

3%

1%

Metropolitan

Municipality

Boundaries and

Surrounding Areas

2%

4%

6%

2%

Income Tax

If you provide rental income from your property or you sell it, you’ll be subject to pay taxes for the income you receive from renting or selling your property.

Tax Rates Depending on Income:

Up to 12.600 TL

% 15

12.601—30.000 TL

% 20

30.000—110.000 TL

% 27

110.000 and over

% 35