Turkish Tax System: Up-to-date Information and Tips

Property Tax in Turkey Guide

In Turkey, property tax in Turkey is a type of tax collected from real estate owners and transferred to local municipalities. This tax plays a significant role in financing local governments, providing various services such as city infrastructure, public services, education, and healthcare. Does Turkey have property tax? Yes, property owners in Turkey are required to pay this tax annually at specific times. Based on the Property Tax Law No. 1319, this tax system varies according to the value and type of the real estate. In this article, you will find all the details about property tax rates, payment methods, exemptions, and penalties in Turkey.

What is Property Tax in Turkey?

Property tax in Turkey is a tax applied to all real estate in Turkey. These properties include homes, workplaces, lands, fields, and other immovable assets. Property tax in Turkey is an annual obligation that must be paid at specific times and is paid to local municipalities. Municipalities use this revenue for local projects such as city infrastructure, social services, education, and healthcare. Property tax in Turkey is valid for both individuals and companies. How much property tax in Turkey varies based on the location, size, usage purpose, and value of the property. The tax is calculated according to the tariff determined by municipalities for each property.

Types of Property Tax in Turkey

Property taxes in Turkey are calculated with different rates depending on the type of real estate. Properties are generally classified as residential, commercial, land, and fields. Each of these categories has different property tax rates. Here are the rates:

• Residential Properties: In large cities like Istanbul, Ankara, and Izmir, the property tax rate for residential properties can be as high as 0.2%, while in other cities, it may be around 0.1%.

• Commercial Properties and Business Real Estate: Commercial properties generally have a higher property tax compared to residential properties, with rates varying between 0.2% and 0.4%.

• Land and Field Properties: The property tax rate for these types of real estate typically varies between 0.1% and 0.3%.

Luxury House Tax

There is also a special house tax in Turkey for high-value residential properties. Starting in 2025, properties worth over 15 million TRY will be subject to an additional tax. Luxury house tax rates are as follows:

• 5,709,000 TRY - 23,564,000 TRY: 0.3%

• 23,564,000 TRY - 31,421,000 TRY: 0.6%

• 31,421,000 TRY and above: 1.0%

Additionally, when purchasing a property, foreigners should also be aware of the taxes on house purchases in Turkey, which may apply depending on the type of property being acquired.

Property Tax in Turkey for Foreigners

Foreign nationals are subject to the same property tax in Turkey obligations as Turkish citizens when they purchase real estate in Turkey. Real estate tax Turkey applies equally to foreigners, including property taxes for buying, owning, and selling properties. Additionally, there may be extra taxes for foreigners based on income derived from Turkish properties. When buying property, foreigners may be subject to property purchase tax in Turkey and other related fees. Foreign buyers may also be required to pay VAT and capital gains tax Turkey property when selling properties.

To better navigate these obligations, it’s important for foreigners to understand how to obtain the necessary tax identification. You can learn more in our guide on Getting a Tax Number in Turkey: A Quick Guide for Foreigners.

How to Pay Annual Property Tax in Turkey

In Turkey, annual property tax in Turkey is paid in two installments each year. The first installment is generally paid between March and May, while the second installment is due in November. Taxes can be paid through municipal collection offices, participating banks, or online payment systems. How to pay annual property tax in Turkey is simple and convenient through these channels. If taxes are not paid on time, interest will be added.

Penalties for Delay and Interest Rates

If the property tax is not paid on time, a delay interest rate is applied. In 2025, the interest rate for late payments is around 4.5% per month. This means that if the property tax is not settled by the specified date, the outstanding amount will increase with the late interest, and legal actions may follow. Since tax rates in Turkey and penalties can change from year to year, it’s crucial for property owners to stay updated and ensure timely payments.

Tax Obligations in Property Sales and Purchases

In addition to property tax in Turkey, there are other taxes and expenses associated with property sales and purchases in Turkey. These financial obligations affect both the buyer and the seller. Selling property in Turkey tax and tax on buying property in Turkey apply, depending on the nature of the transaction.

Capital Gains Tax: This tax is paid by the seller and is calculated based on the profit made between the purchase and sale prices. The tax rate ranges between 15% and 35%.

VAT: Tax on real estate in Turkey: Applies to purchases of new homes. As of 2025, 1% VAT is generally applied to residential property purchases and 20% VAT is applied to commercial property purchases.

Within the scope of the regulation made on July 10, 2023 with the Presidential Decree No. 7346;

• 18% VAT rate to 20%,

• The 8% VAT rate has been increased to 10%.

However, it is advisable to check the current VAT legislation before the transaction as there may be exceptions and special applications in housing purchases.

• There is no VAT on second-hand house sales.

• It is paid by the buyer.

Title Deed Transaction Fees: Title deed fees typically range between 2-4% of the property value.

*The rates and amounts in this article are valid as of May 2025. As they may be updated in the future, official sources should be followed for the most up-to-date information.

Real Estate Taxes for Foreigners in Turkey

Foreigners purchasing property in Turkey are also subject to real estate taxes for foreigners in Turkey. This includes both property tax in Turkey for foreigners and potential additional taxes like capital gains tax Turkey property when selling the property. It's important for foreign buyers to be aware of these obligations to avoid surprises.

Property Inheritance Tax Turkey

If a property is inherited in Turkey, an inheritance tax applies, known as the property inheritance tax Turkey. The rate of inheritance tax depends on the relationship between the deceased and the heir, as well as the property’s value.

Final Thoughts on Real Estate Taxes in Turkey

Is there property tax in Turkey? Yes, property tax is an essential part of real estate ownership in Turkey. Whether you are buying or selling property, it is crucial to understand the tax responsibilities, including real estate tax in Turkey, property tax in Turkey, and additional fees like tax on selling property in Turkey or tax on real estate in Turkey. By staying informed, you can navigate the real estate market more confidently and avoid potential legal and financial complications.

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