Understanding Property Tax in Turkey
A Guide for Local and Foreign Property Owners
Whether you’re a local homeowner or a foreign investor in Turkey, understanding property taxation is crucial to ensure compliance and protect your investment. This blog outlines everything you need to know about property tax in Turkey, including rates, payment schedules, exemptions, and the distinction from valuable housing tax.
When investing in Turkish real estate, it’s essential to understand the upfront taxes and fees associated with a property purchase. Two of the most important taxes are the Title Deed Transfer Tax (Tapu Harcı) and the Value-Added Tax (KDV).
1️⃣ Title Deed Transfer Tax (Tapu Harcı)
The Title Deed Transfer Tax is a mandatory tax paid when transferring ownership of a property in Turkey. It’s one of the largest one-time costs in the purchase process.
📌 Key Details:
- Rate: 4% of the declared sale price
- Who Pays?: Officially split 50/50 between buyer and seller, but often the buyer pays the full 4% in practice
💳 How and When to Pay:
- Payment is made to the General Directorate of Land Registry and Cadastre (
Tapu ve Kadastro Müdürlüğü) - Once your title deed appointment (tapu randevusu) is scheduled, you’ll receive an SMS with the reference number and payment amount
- Must be paid before the deed transfer can take place
🧾 Additional Fees:
- Döner Sermaye (Service Fee): An administrative fee charged by the land registry office
- As of 2025: Approximately ₺935 (subject to annual update)
⚠️ Important Note on Declaration Practices:
In some cases, the declared value (used to calculate the tax) is lower than the actual sale price, often around 50–60% of the true market value. This is based on the “rayiç bedeli” (minimum taxable value) issued by the local municipality.
❗ Warning: While common in the past, this practice is not legal and the Turkish government is increasingly enforcing stricter declarations. Always ensure your transaction complies with current regulations to avoid legal and tax issues.
2️⃣ Value-Added Tax (KDV) on Property Purchases
In Turkey, Value-Added Tax (VAT), known locally as KDV, may apply to property purchases depending on several factors.
📌 When Is VAT Applicable?
- VAT is only due when buying brand-new properties from developers or construction companies (first-time sales)
- Resale properties (from individuals) are exempt from VAT
💰 VAT Rates:
- 1% – 20%, depending on:
- Property size
- Usage (residential or commercial)
- The legal status of the seller (individual or company)
- Zoning and location
🌍 VAT Exemptions for Foreign Buyers:
Foreign buyers may qualify for VAT exemption on their first property purchase under certain conditions:
✅ The buyer must:
- Be a non-resident foreign national
- Pay the full amount in foreign currency
- Commit not to sell the property for at least one year
- Provide proof of residence abroad (such as a work permit, residence card, or tax documents)
📌 What Is Property Tax in Turkey?
Property tax is an annual levy imposed on real estate assets in Turkey, including:
- Residential homes
- Commercial buildings
- Land and vacant plots
- Industrial and mixed-use properties
The tax is calculated based on the taxable value of the property, which is determined by the local municipality and may be lower than the market value.
👥 Who Must Pay Property Tax?
All property owners in Turkey are obligated to pay, including:
- Turkish citizens
- Foreign nationals
- Corporate entities (domestic and international)
💰 Property Tax Rates in Turkey (2025)
| Property Type | Metropolitan Areas | Small Municipalities |
|---|---|---|
| Residential | 0.2% | 0.1% |
| Commercial | 0.4% | 0.2% |
| Land | 0.6% | 0.3% |
| Vacant Land (for building) | 0.3% | 0.1% |
The tax is applied to the taxable value, not necessarily the market price.
🧮 How Is Property Tax Calculated?
The formula is simple:
Tax Amount = Taxable Value × Applicable Tax Rate
Taxable value is set by the municipality based on:
- Property type and usage
- Location (metropolitan vs. rural)
- Size and features
- Municipal reassessments
📅 Payment Deadlines
Property tax is paid annually in two installments:
- First Installment: Due by end of May
- Second Installment: Due by end of November
🛑 Late payments are subject to monthly interest, and may lead to legal proceedings or restrictions on property transactions.
🎁 Exemptions & Discounts
Certain individuals and properties qualify for tax exemptions or reduced rates:
- ✅ Retirees and low-income earners (one residential home)
- ✅ Disabled individuals (primary residence)
- ✅ Registered cultural or historical properties
- ✅ New constructions (exempt for up to 5 years)
Always check with your municipality or tax advisor to confirm eligibility.
💻 How to Pay Property Tax in Turkey
- 🏛️ In-person: At the local municipality where the property is registered
- 🌐 Online: Via the municipality’s official website (if available)
- 🏦 Bank transfer: To the official bank account of the municipality
🏘️ Property Tax vs. Valuable Housing Tax
Turkey has two main property-related taxes. Here’s how they differ:
🔹 Property Tax
- Applies to all real estate (residential, commercial, land)
- Flat rate (0.1%–0.6%)
- Paid twice annually
- All owners are liable
🔹 Valuable Housing Tax
- Applies only to luxury residences exceeding a taxable value threshold (e.g., ₺6 million)
- Progressive rate: Starts at 0.3% and increases with value
- Paid once a year
- Exemptions for primary residences under certain conditions
| Category | Property Tax | Valuable Housing Tax |
|---|---|---|
| Applies To | All property | High-value homes only |
| Tax Rate | Fixed (0.1–0.6%) | Progressive (0.3–1.0%) |
| Payment Frequency | Twice per year | Once per year |
| Exemptions | Yes | Yes |
⚠️ Penalties for Late Payment
Failure to pay property tax on time may result in:
- Monthly interest charges
- Legal enforcement actions
- Inability to sell or transfer the property until taxes are paid
🤝 Expert Help with Property Tax in Turkey
Staying compliant with Turkish property tax regulations ensures peace of mind and smooth property ownership—especially for foreign investors. If you’re unsure about your obligations or want professional help managing your taxes:
💼 Contact Gate Realty Consulting Co.
We specialize in:
- Real estate tax advisory
- Accounting and compliance for foreign investors
- Support with valuable housing tax
- Consulting on property acquisition and structuring
📞 Let’s Talk
Contact us today for a consultation on how we can help you manage your property portfolio in Turkey efficiently and compliantly.
👉 www.gaterealty.co
📧 info@gaterealty.co
📞 +90 531 5633600
