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taxes in turkey
Taxation Buying Guide

Let’s Talk Taxes in Turkey

When you invest in Turkey's property market, you'll be able to make an application to obtain Turkish citizenship. If you buy a home in Turkey, you must pay real estate taxes when you get a title deed, also known as "TAPU."

The typical rate is the rate of 4 percent of the cost of the purchase. Most of the time, it is split in half, so the buyer and the seller each have to pay the same amount, which is 2 percent.

If you purchase a new property from the construction company, taxes are generally shared 50-50. However, when you buy a resale house from a person, the buyer is typically expected to pay for the entire 4 percent.

Here’s your complete guide to taxes in Turkey. It’s important to review this to make the right financial adjustments before buying property. 

1- Purchase Tax 

Purchase tax or stamp duty is an indirect tax in any contract or agreement. This payment is dedicated to the local municipality. As your property buying process involves a contract and an agreement, both parties will have to pay a purchase tax. 

In Turkey, the stamp duty is a percentage that can vary between 0.15% to 0.75% of your property. You should pay your stamp duty by the 23rd of the following month.  

2- Annual Property Tax 

The municipality will collect an annual tax payment that comes at an insignificant cost. This tax difference between land and residential projects. Where you’re to pay 0.3% of the total costs for land. As for a house, the annual property tax in Turkey sits around 0.1% of the total amount. But these figures vary between the cities.
Property Pluss will take you through the ins and outs of the process.

Unpaid taxes remains a debt on the property, not the resident. Our lawyers at Property Pluss will make this doesn’t happen by digging after tax debts. Our lawyers will likely recommend you add a clause in the sales contract that removes any liability from you for the previous owner’s debts.

3- Property Registration 

Property registration is registering real estate under your name and claiming ownership. This calls for a 3% tax that you, as the buyer, split with the seller. So, each party will pay a 1.5% registration tax.

4- Value Added Tax (VAT)

All industrial, commercial, and professional transactions in Turkey are subject to VAT following Turkish law. There are, however, some exceptions:
  • If the owner of the property isn't engaged in any business in Turkey,
  • If the current owner is not working in the real estate trading business and has owned it for over two consecutive years.

Additional VAT exemptions are offered to first-time overseas buyers:

  • 18% VAT is applicable to commercial properties;
  • 1 or 18% tax for residential homes;
  • 11% VAT is available for flats that have a net area of less than 150 square meters;
  • VAT 18% - for units with an area net of over 150 square meters.

Property Taxes in Turkey: Date and method of payment

According to the article published in Aksam, individuals who bought real estate as of January 1, 2019, who should consider the real estate tax for 2019, must pay it between January 1 and December 31, 2019. The wealth is calculated based on the value of land, and the following are answers to the most frequent questions concerning the payment of this tax.