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Detailed Turkey Property Tax Guide for Foreigners

  • 27 December 2021

Turkey property tax is one of the biggest question marks on the minds of foreigners who are planning to invest in the country. Thus, we wanted to prepare this guide for you! If you already know the basics, you can skip the first two headings, in which we discussed whether foreigners could buy a property in Turkey and is it wise to buy a property in the country or not.

After these sections, we have provided detailed information about the property tax in Turkey. If you wonder whether foreigners pay property tax in Turkey, you can skip to the third section. Moreover, you will learn how to calculate your property tax and learn how to pay them.

You will also learn more about how much VAT, i.e., value-added tax you need to pay for your purchases. There are two types of VATs you will be charged in Turkey. We also mentioned their ratios and when you are going to be charged at which ratio.

Can a Non-Turkish Citizen Buy a House in Turkey?

Turkey adopts a liberal economic system and thus, it offers freedom for foreigners to purchase a house in the country. However, just like all other countries, Turkey also has some restrictions. Other than these restrictions, which we have covered in the following, any foreigner can purchase land in the country.

There is only one exception, which is not related to nationality. The Turkish government does not allow individuals, who are involved in terrorist activities, to buy property.

In addition to this, foreigners cannot purchase any property or land in and around the military areas. We highly recommend working with a consultancy agency before making payment for any property. You need to check this criterion in advance before finalizing any deal and transferring the money.

Additionally, the square meter that a single foreigner can buy in Turkey is limited. Each individual cannot purchase land of more than 30 hectares. However, there are no restrictions about how many properties you can purchase in-country. You can buy a single piece of land that is equal to 30 hectares or 10 lands with 3 hectares each.

Is It Wise to Buy Property in Turkey?

Considering the great devaluation of the Turkish Lira, more and more foreigners consider Turkey as a great investment opportunity. Many foreigners have already invested in various property types in the country or started a business.

This month, the Euro and Dollar reached a record high right after the Turkish government announced its economic support plan. This plan helped the Turkish Lira to gain some value but considering the inflation, it is believed that the Turkish Lira will keep losing value in the following months.

As of today, one dollar is almost equal to eleven Turkish Lira. This is still a favorable rate for foreign investors. Turkish experts believe that the Turkish Lira will keep the increase in value for the following month. Most experts predict that one dollar will be about eight and a half Turkish Lira.

However, it is estimated that the lack of economic mechanisms will affect the overall value of the Turkish Lira at the beginning of the next year. In short, these days are quite favorable days to invest in property in Turkey. However, you can also wait for the following month for better deals.

Do Foreigners Pay Property Tax in Turkey?

The Turkish government does not offer any privileges to locals or foreigners when tax is in question. Although foreigners have serious advantages in certain taxes, unfortunately, none of these apply to property tax. According to Turkish laws and regulations, anyone who owns a property in the country is obliged to pay property tax.

What Is the Property Tax in Turkey?

The property tax you are going to pay varies between 0.1% and 0.6%. Some factors that affect this rate include your property type and its location. If your property is in a small country and it is a building or apartment, then you will be charged 0.2%. On the other hand, if your property is in a metropolitan city, then you are going to be charged 0.4%.

Those were taxes for properties that are considered residences. If you have a commercial property, then the flat rate is 0.4% regardless of its location. Moreover, if you own land in the country, then you will be charged 0.6%.

What Is the Property Purchase Tax in Turkey?

If you are going to buy a property in Turkey, then you will be charged 4% stamp duty and 1.5% agency fee. The stamp duty is calculated over the assessed value of the property. The assessed value corresponds to the 60% of the price you pay for your property while buying it.

In addition to this, the agency fee is 3%. However, parties share this fee. This means that you and the seller will pay a 1.5% agency fee each.

Besides these fees, you will also have to pay a real estate solicitor fee, if you receive any services from them. These fees completely depend on the reputation and experience of the agency. We highly recommend working with a real estate solicitor to avoid any kind of scam.

How Can Foreigners Pay Their Taxes in Turkey?

The best part of property tax in Turkey is you are going to pay it in two installments. Anyone can easily pay the tax by visiting the municipality in which his or her property is located. This tax is also known as Emlak Vergisi in Turkish.

The first installment must be paid between March and May and the second installment must be paid in November. If you do not want to visit the municipality because you believe the language will be a barrier, then you can also pay your taxes online or through banks.

If you miss your installments or neglect to pay your taxes, then the government will charge a 2.5% interest rate every month. If you already have an account in any of the Turkish banks, you can contact your customer representative to get detailed information about how to pay your taxes from your account.

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