Taxation and obligations for property owners in Turkey: understanding financial aspects

Residents of different countries prefer to invest money in purchasing real estate in Turkey. Potential investors are attracted by the advantages of this solution.

Investing in property for sale in Turkey can be a profitable venture, but it’s essential to understand the taxation and financial obligations that come with property ownership. In this article, we will explore the key financial aspects, including taxes and obligations that property owners in Turkey need to be aware of.

Property Taxes in Turkey

Purchase Tax: When buying property in Turkey, buyers are required to pay a purchase tax, also known as the title deed transfer tax. This tax is calculated at 4% of the property’s declared value. It is typically split between the buyer and the seller, but this can be negotiated.

Annual Property Tax: Property owners in Turkey must pay an annual property tax based on the property’s value. The rates vary depending on the type of property and its location. For residential properties, the tax rate is 0.1% in metropolitan municipalities and 0.2% in non-metropolitan areas.

Rental Income Tax: If you rent out your property, the rental income is subject to taxation. The rental income tax rates are progressive, ranging from 15% to 40%, depending on the amount of income earned. Property owners can deduct certain expenses, such as maintenance and repair costs, to reduce their taxable rental income.

Value-Added Tax (VAT): In most cases, VAT is not applicable on the sale of residential properties to foreign buyers. However, commercial properties and certain luxury homes may be subject to VAT at a rate of 18%.

Capital Gains Tax: When selling a property in Turkey, capital gains tax may apply if the property is sold within five years of purchase. The tax rate ranges from 15% to 35% of the gain, depending on the amount. Properties held for more than five years are exempt from capital gains tax.

Inheritance and Gift Tax: Inheritance and gift tax applies to properties transferred through inheritance or as a gift. The rates range from 1% to 30%, depending on the relationship between the giver and the recipient and the value of the property.

Financial Obligations

Maintenance Fees: Property owners in Turkey are responsible for paying maintenance fees, known as aidat, for properties within residential complexes or gated communities. These fees cover the cost of shared amenities and services, such as security, landscaping, and cleaning.

Utilities and Services: Property owners must budget for utilities and services, including electricity, water, gas, and internet. The costs vary depending on usage and location. Setting up these services requires registration with local providers and may involve additional fees.

Insurance: While not mandatory, it is highly recommended to have property insurance to protect against risks such as natural disasters, fire, and theft. Insurance premiums depend on the property’s value and coverage level.

Legal and Administrative Obligations

Title Deed Registration: After purchasing a property, the title deed (Tapu) must be registered with the local Land Registry Office. This process involves verifying the property’s legal status and ensuring there are no outstanding debts or encumbrances.

Residency Permit: Foreign property owners may apply for a residency permit, allowing them to stay in Turkey for extended periods. This permit can be renewed annually and provides additional benefits, such as access to local healthcare and education.

Support from Stay Property

Stay Property provides expert guidance and support in navigating the financial aspects of property ownership in Turkey. Our team of professionals offers comprehensive services, including legal assistance, tax advisory, and property management, ensuring a smooth and successful investment experience.


Understanding the taxation and financial obligations associated with property for sale in Turkey is crucial for successful investment. By partnering with Stay Property, you can navigate these complexities with confidence and make informed decisions. Explore the benefits of owning property in Turkey and secure your financial future today.