Annual Property Tax In Turkey

In Turkey, there is not much of a tax on the real estate’s itself but there are fees on the transfer stage of your deal. The only tax that needs to be paid annually in Turkey about the real estates is the Annual Property Tax. Annual Property Tax varies due to some conditions.

When you own property in Turkey, you must pay an additional annual tax to the Turkish government. The cities across Turkey are split in two as big and small while real estate tax in Turkey varies based on the size of the city and the kind of property.

What are the Rates?

Residential Properties in big cities will pay the 0.2% of the property’s value while those are that in small cities will pay 0.1%.

Commercial Properties in big cities will pay the 0.4% in contrast to small cities with 0.2%.

Tax of the lands in big cities is 0.6% versus small cities’ lands’ 0.3%.

Farms same as residential properties in big cities will pay 0.2% the properties value as tax meanwhile in small cities it is set as 0.1%.

VAT

Value-Added Tax (VAT) is a consumption tax that is added to the price of goods and services, including property, in Turkey. For new properties, VAT is typically included in the purchase price and is paid by the buyer. For resale properties, VAT is not applicable, and the buyer only needs to pay the transfer title deeds (TAPU) tax.

The current VAT rate for property in Turkey is 18%. This means that if you purchase a property for 1,000,000 Turkish Lira, you will be required to pay an additional 180,000 Turkish Lira in VAT. 

Exemptions

However, there are some exemptions and reductions on VAT for property purchases in Turkey. For example, properties that are considered primary residences may be eligible for a reduced VAT rate of 8%. Additionally, properties that are considered as "social housing" or "affordable housing" may be eligible for a reduced VAT rate of 1%.

Annual property tax is the easiest part of owning a real estate and it is generally quite low.