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Property Purchase Tax in Turkey

Property Purchase Tax in Turkey

Mon, Jan 23, 2023, 08:48:41 AM

Property taxes in Turkey can be difficult to understand due to being foreign to the countries laws and regulations on the matter but we can separate the taxes to three categories such as property purchase tax, selling tax and annual tax on properties in Turkey. If you are looking to own a house in Turkey, you have to pay the required tax while acquiring and its annual tax when you own it as well but you don’t have to worry about selling property in Turkey because it is not taxable unless you are commercially selling them.

Purchasing Tax (Title Deed Fee)

You decided to buy a property in Turkey and choose a suitable asset, so you have to transfer it you legally. This is where the purchasing tax comes into play. To legally own a property you have to own a title deed in Turkey. This tax is paid to the government officials who prepare the deed and it is usually about 4 percent of the price of the property. This amount is usually split between seller and buyer but it all depends on the agreement you make between two sides so selling property in Turkey, tax is not so important.

VAT (Value Added Tax)

It is the price paid for all industrial, commercial and professional transactions made in Turkey. The percentage is between 1 and 18 percent in Turkey however there are some exemptions if the owner of the property is not involved with any commercial activity or owned the property for more than two years. If the owner is commercially selling property in Turkey, tax is not exempted and overall price paid in property purchase tax in Turkey is added on top of the VAT as well.

You can read our "Tax and Turkish Real Estate" blog.

Annual Property Tax

You completed the transaction and you are now a homeowner. Now the only tax you have to worry about is the annual property tax that differs depending on the city and type of the property. There are 4 types of property including residential and commercial properties alongside the farms and lands. Cities are also divided into 2 as big and small. The annual tax percentages are as follows:

  • Big City: Residential – 0.2, Commercial – 0.4, Farms – 0.2, Lands – 0.6
  • Small City: Residential – 0.1, Commercial – 0.2, Farms – 0.1, Lands – 0.3

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