Real estate taxes in Turkey

If you are interested in real estate investment in Turkey or intend to buy an apartment in Turkey for housing and stability, you should be aware of the most important things that may affect your investment decisions, precisely the real estate taxes that you must pay when buying a property and that you must pay annually as well.

• Definition of real estate taxes in Turkey:

Real estate taxes are amounts that are paid once or annually at specified rates on real estate owned by a person or company.

Real estate taxes in Turkey can be defined as certain amounts paid by both the buyer and seller to the tax department. Real estate taxes are imposed on both foreigners and Turks when buying or selling a new property, when transferring ownership, or when inheriting the property.

First, you need a real estate advisor when planning to buy a property in Turkey to show you the path and accompany you in your steps when owning and buying an apartment in Turkey in general or buying an apartment in Istanbul in particular. And you can contact us at Deyaar Real Estate Group at any time to get all the information and real estate advice that interests you.

The Turkish government provides facilities for those who are willing to invest in real estate in Turkey or for those wishing to buy houses for residency in Turkey.

Real estate taxes in Turkey are paid in two forms, taxes on residential real estate and taxes on commercial real estate, these taxes are paid once when buying and selling or when transferring ownership, and they can be paid annually and be in the form of annual fees for certain services or tariffs.

• Types of real estate taxes in Turkey:

There are several types of real estate taxes paid by the real estate investor in Turkey, including value-added tax, annual real estate tax, title deed tax, real estate rental tax, and real estate inheritance tax.

No matter how varied and changing the taxes are, you should pay attention, dear investor, to the right way to achieve your dream of real estate investment when buying your apartment in Istanbul or in the rest of Turkey, given the benefits that you will achieve from this real estate investment.

Value Added Tax:

The tax changes according to the type of real estate (commercial or residential) and its location (real estate located in areas of natural hazards is exempted from value-added tax). You obtain a tax exemption in certain cases by communicating with a real estate agent with long experience in the real estate field in Turkey and in return for the value-added tax that is calculated from the price of the property and ranges between 1% and 18% and is not calculated from the total area of the property, but from the entire area of the property. VAT only once will be paid when buying a property in Turkey.

Annual property tax:

When you buy a property in Turkey, you must pay an annual real estate tax. This tax is paid to the municipalities and varies from one city to another. The type of property plays a prominent role in determining the tax rate as it varies between the capital and the rest of Turkey's cities. For example, residential real estate in the capital is paid 0.2% annual tax on the value of the property. Real estate and in cities 0.1% of the property value, and for commercial properties, the annual real estate tax is paid in cities 0.2% and 0.4% of the property value in Ankara and large cities, and there is also a difference between the tax on land from 0.1% to 0.2% between cities and the big cities.

Tapu tax (title deed):

This tax is paid one time when registering the title deed at the Real Estate Registry Department in Turkey. The title deed tax is calculated as 4% of the total property value mentioned in the purchase contract. The title deed tax is paid equally between the construction company and the buyer if you are buying a property under construction or ready from One of the construction companies, and even if you are buying a property from another person, you must pay the Tapu tax equally between you and the seller when registering the property and transferring ownership, and there is another case in which the Tapu tax is paid when the property is inherited from a person entitled to the family of the owner of the property.

Real estate rental tax:

If you are a real estate investor and you rent your property, you must pay a tax called “rental income tax.” This tax depends on the value of the property’s rent, and each property owner must submit a statement of rental income to the tax office at the end of each March of the year, and there is a certain rate based on which the value of the rental tax is calculated, it is as follows:

• 15% for properties whose rent reaches 18000 TL
• 20% for real estate with a rental value between 18,000 and 40,000 TL
• 27% for rented properties with a value between 40,000 and 98,000 TL
• 35% for rented properties with a value between 98000 and 500,000 TL
• 40% for rented properties with a value of more than 500,000 TL

Inheritance tax:

In the case of inheriting property in Turkey, the heir of the property must pay certain taxes to the tax department, and they are calculated from the value of the property as follows:

• 5% of the property value if the value ranges between 510,000 and 1,280,000 TL
• 7% of the property value if the value ranges between 1,280,000 and 2,780,000 TL
• 10% of the property value if the property value exceeds 2,780.000 TL

There are other taxes and fees that are paid monthly or exceptionally when carrying out certain procedures such as attestation fees and documentation fees at the notary, as well as monthly fees paid to the municipality for cleaning services and maintenance of roads and sidewalks, but these fees remain in simple proportions and for public services carried out by municipalities in Turkey.

When buying a property in Turkey, you should pay attention to several things and build clear information about the type of property and what you must pay, and we advise you at Deyaar Group Real Estate to choose your reliable real estate agent who guides you the right way to buy real estate in Turkey.