Property Tax in Turkey

Property tax in Turkey,

Property Tax in Turkey, The subject of real estate taxes in Turkey is followed by many people due to its importance, and property taxes in Turkey are one of the lowest in the region. Therefore, we see a lot of questions about the subject and Nirvana Property will answer all your questions.

What are property taxes in Turkey?

Property tax in Turkey varies in many ways, but the country offers very reasonable and affordable taxation for owning property in Turkey.

For example, Residential properties have lower annual taxes compared to commercial properties in Turkey, and the same is true for buying properties in Turkish cities compared to buying properties in Turkish metropolitan cities that pay more annual taxes.

For this reason, many foreign investors choose Turkey as an investment destination because the real estate market has a high potential and is constantly growing.

Another great advantage is the exemption from property tax in Turkey for those who own a single house with a maximum area of 200 square meters.

  • When you buy a property in Turkey, there is a tax called Title Deed Conveyance Tax.
  • If you inherit a property in Turkey, the property is subject to inheritance tax.
  • Apartments taxes in Turkey are calculated with a 100% increase in municipalities.
  • Property tax returns are filed every four years and the tax is calculated based on the land and facilities of the property.
  • Rental properties are paid whether the owner lives inside or outside the property, but the annual rental income of less than 3,600 TL is exempt from taxation.
  • Property tax is paid in two parts; the first one is in March and May, and the second is in November. 
  • The penalty fee is 2.5% or 1.40% of the amount for each month if the tax payment is not made on time.
  • Purchasing tax is 4% of the sale price, and usually, it is paid half by the buyer and half by the seller, however, when the property is bought directly from the seller usually the 4% tax should be paid by the buyer.
  • Commercial property taxes are fixed at 18%.
  • Residential property taxes vary from 1% to 18%; 1% VAT ( Value Added Tax) is required for apartments with an area less than 150 square meters, and 18% VAT is required for apartments with an area more than that.

Property tax in Turkey

What is the yearly property tax in Turkey?

Annual Property Tax
Property TypeBig CitiesSmall Cities
Residential Properties0.0020.001
Commercial Properties0.0040.002
Farms0.0020.001
Lands0.0060.003

Property tax in Turkey

What are income taxes for property in Turkey?

Turkey is known for its low-income taxes compared to the rest of the world, especially for the real estate sector which already has incredible advantages.

Renting out your property will subject your income to taxes. The same goes for selling your property, but you will be exempt from taxes after 5 years of ownership in Turkey.

  • %15 to an income of 24,000 TL.
  • %20 to an income of 24,000 to 53,000 TL.
  • %27 to an income of 53,000 to 130,000 TL.
  • %35 to an income of 130,000 to 650,000 TL.
  • %40 to an income over 650,000 TL.

How to buy property in Turkey?

  • Registering property in the Turkish Land Register Office, and making earthquake insurance which is required.
  • Apply a pre-sale approval, which is issued by the Land Registry office.
  • For Foreigners, approval from the Turkish Council of Ministers is required to buy land in Turkey.

Nirvana Property professionals will offer you all the help and information you need to start investing and buying in Turkey and find the best and most suitable option for you considering your budget and future plans. Make sure you contact us.

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