Property Taxes in Turkey - How Does It Work?

Property in Turkey is a liquid asset, enjoying enduring popularity. Purchasing a property is not just an opportunity to profit from resale or rental income but also entails certain obligations.

Modern Turkish legislation stipulates the payment of one-time and ongoing property taxes. One-time taxes are obligations arising from property transactions: purchases, sales, gifts, or inheritances. Ongoing taxes are obligations associated with property ownership: municipal tax, and owners of luxury properties pay a luxury tax.

What property taxes exist in Turkey?

The Republic of Turkey is known for its relatively low property taxes, which are equally applied to citizens and residents who purchase properties in Turkey.

Property Purchase Tax

When purchasing any property, the owner is required to pay a one-time tax amounting to 4% of the cadastral value (as stated in the Title Deed).

Property Ownership Tax

Regular fees that the owner must pay on an ongoing basis. The amount depends on the cadastral value, location of the property, and type of property:

• Residential property - 0.1-2%. In small towns, this is the minimum value, while in major cities, it's 2%.
• Commercial property - calculated similarly to residential properties: 0.2-0.4% depending on location.
• Land - the tax is determined based on the type of land:

Agricultural land - 0.1-0.2% depending on location; Land with building permission - 0.3-0.6% depending on the size of the settlement; Agricultural land in villages - 0.1%.

• Luxury property - this includes villas/houses whose value exceeds 5.25 million TR. Depending on the value of the property, a progressive rate applies: 0.3%-0.6%-1%. If the price exceeds 10.5 million TR, the owner annually pays a fixed amount of 22,500 TR + 1% tax.

Taxation upon the sale of properties

When selling a property, it is necessary to pay tax if the cadastral value is higher than at the time of purchase. A tax of 15-35% is levied on the difference in amounts. If the property has been owned for more than 5 years, no tax is imposed. Taxes are paid through the local municipality. This can be done in person or online by registering on the municipality's website. To fulfill tax obligations, one must have a passport and Title Deed. Late payment incurs fines and penalties on the owner. To stay up-to-date with property taxes in Turkey and avoid delays, entrust all payments to the experts at GARANT IN migration agency.