Key takeaways
- The main purchase tax is the 4% title-deed transfer fee on the declared value.
- VAT can apply on new builds, but foreign-currency buyers may qualify for an exemption.
- Annual property tax is low (about 0.1%-0.6% of assessed value).
- Residential capital gains are generally tax-free after five years of ownership.
Turkey's property taxes are relatively low by international standards, but it pays to understand each one before you buy. Here is the full picture for foreign buyers, from the one-off costs at purchase to the ongoing taxes of ownership.
Title deed (TAPU) transfer fee
The main transaction tax is 4% of the declared property value, payable at the Land Registry when ownership transfers. It is legally shared between buyer and seller, though in practice this is negotiated - we clarify it for each deal.
VAT (KDV)
VAT can apply on new builds and ranges by property type and size. A valuable exemption exists for foreign buyers who bring foreign currency into Turkey and hold the property for a set period. We check whether your purchase qualifies.
Annual property tax
Owners pay a small annual property tax to the municipality - typically 0.1%-0.6% of the assessed value depending on the property type and location. It is modest and usually paid in two instalments.
Rental income tax
If you let your property, rental income is taxable on a progressive scale, with an annual exemption for residential rents. Allowable expenses can be deducted. Our management service handles reporting for overseas owners.
Capital gains and inheritance
Gains on a property sold within five years of purchase are taxable (with an annual exemption); after five years, residential gains are generally exempt. Inheritance and gift tax applies at low progressive rates.
Budget with confidence
See our full cost of buying guide and buying process guide, or ask us for a tailored tax and cost breakdown.
Frequently asked questions
- What is the main property tax in Turkey?
- The 4% title-deed (TAPU) transfer fee, calculated on the declared value, is the principal transaction tax, legally shared between buyer and seller.
- Do foreigners pay annual property tax in Turkey?
- Yes, a low annual municipal property tax of roughly 0.1%-0.6% of assessed value, depending on property type and location.
- Is there capital gains tax when selling property in Turkey?
- Gains on a residential property sold within five years are taxable (with an annual exemption); after five years they are generally exempt.
