Quick answer
Turkey taxes property at purchase (4% title-deed fee; 1-20% VAT on new builds, often exempt for foreign-currency buyers), during ownership (0.1-0.6% annual municipal tax plus tax on rental income), and on sale (capital gains tax if sold within five years; exempt after five years).
Key takeaways
- Purchase: 4% title-deed fee; 1-20% VAT on new builds (often exemptible).
- Ownership: 0.1-0.6% annual municipal property tax.
- Rental income is taxed progressively after an allowance.
- Capital gains are exempt if you hold for more than five years.
Turkey's property taxes are low by international standards, but they apply at three moments - when you buy, while you own, and when you sell or let. This guide sets out each one with current rates, in a single reference table and in detail, so you can model your true return before committing.
Every property tax at a glance
| Tax | When | Rate |
|---|---|---|
| Title-deed (TAPU) transfer fee | At purchase | 4% of declared value |
| VAT (new builds) | At purchase | 1%-20% (exempt for eligible foreign-currency buyers) |
| Annual property tax | Yearly | 0.1%-0.6% of registered value |
| Rental income tax | If you let | Progressive, after an annual allowance |
| Capital gains tax | On sale within 5 years | On the indexed gain; exempt after 5 years |
| Environmental (waste) tax | Yearly | Small, collected via utility bills |
Taxes when you buy
The headline charge is the title-deed (TAPU) transfer fee of 4% of the declared value, legally split between buyer and seller. New-build purchases also carry VAT of 1% to 20% depending on type and size, with a full exemption available to foreign buyers who bring in foreign currency and meet the conditions. Resale between individuals is generally VAT-free.
Annual property tax
Owners pay a municipal annual property tax of 0.1% to 0.6% of the registered value. The rate depends on whether the property is residential or commercial and whether it sits inside a metropolitan municipality. It is modest - on a mid-range apartment it typically amounts to a few hundred dollars a year - and is usually paid in two instalments.
Tax on rental income
If you let your property, rental income is subject to progressive income tax after an annual tax-free allowance and deductible expenses. Keeping invoices and records lets you reduce the taxable base legitimately. Non-residents are taxed on their Turkey-source rental income; we can connect you with an accountant to file correctly.
Capital gains on sale
If you sell within five years of purchase, any gain may be subject to capital gains tax on the difference between the indexed purchase and sale prices. Sell after holding for more than five years and the gain is exempt - a key reason many investors plan their exit around that horizon. Note that the citizenship route requires holding for three years regardless.
Other charges
Compulsory DASK earthquake insurance is required and inexpensive. There is also a small environmental (waste) tax collected via utility bills. Inheritance and gift tax exist at low progressive rates if the property later transfers within the family.
How this affects your return
Because acquisition and holding taxes are low, Turkey compares favourably with many European markets on net yield. Model the 4% entry cost, the 0.1% to 0.6% annual tax and any rental-income tax against a gross yield of around 5% to 7% in Istanbul to see your net position. We give clients a full pre-purchase tax breakdown and work with licensed accountants for filings. Ask us for a tax breakdown.
Frequently asked questions
- How much is annual property tax in Turkey?
- Between 0.1% and 0.6% of the registered value per year, depending on property type and location - low by international standards.
- Do I pay tax when I sell?
- Capital gains tax may apply if you sell within five years of buying; sales after holding more than five years are exempt from that tax.
- Is rental income taxed?
- Yes, on a progressive scale after an annual tax-free allowance and deductible expenses. Keeping records lowers the taxable base.
