INSPIRE JOURNAL
Real estate taxes and costs in Turkey (2025 updated guide)
A complete 2025 guide on property taxes and costs in Turkey. Learn about title deed fees, annual property tax, rental income tax, VAT, and hidden expenses.
🏠 Introduction: Why property taxes matter
When buying real estate in Turkey, investors should consider not only the purchase price but also taxes and additional costs.
These expenses affect the total ROI and must be included in every investment plan.
This 2025 guide outlines all mandatory taxes and common fees for both local and foreign buyers.
🧾 1. Title deed tax (tapu harcı)
Paid during property transfer at the Land Registry Office.
| Detail | Information |
|---|---|
| Rate | 4% of declared sale price (usually 2% buyer + 2% seller) |
| Basis | Declared value on title deed |
| Timing | Before transfer |
| Example | For a ₺5,000,000 property → ₺200,000 total tax |
📌 Applies equally to foreign buyers.
Some developers offer promotions where the seller covers the tax.
🏢 2. Annual property tax
Paid to the local municipality once a year, based on property type and location.
| Property Type | Metropolitan (Istanbul) | Other Cities |
|---|---|---|
| Residential | 0.2% | 0.1% |
| Commercial | 0.4% | 0.2% |
| Land | 0.6% | 0.3% |
| Agricultural land | 0.2% | 0.1% |
📅 Payment: Twice a year (May & November).
💡 Applies from the year following purchase.
💸 3. Rental income tax
Income earned from renting property in Turkey is taxable.
| Annual Income | Tax Rate |
|---|---|
| 0 – ₺110,000 | 15% |
| ₺110,001 – ₺230,000 | 20% |
| ₺230,001 – ₺580,000 | 27% |
| ₺580,001 – ₺3,000,000 | 35% |
| ₺3,000,001+ | 40% |
📌 Foreign investors are also subject to rental income tax and must file an annual declaration in March.
🏗️ 4. VAT (Value Added Tax)
Applies mainly to newly built properties.
| Unit Price | VAT Rate |
|---|---|
| 0 – ₺2,000,000 | 1% |
| ₺2,000,001 – ₺5,000,000 | 10% |
| ₺5,000,001+ | 20% |
💡 Resale (second-hand) properties are exempt from VAT.
⚖️ 5. Other costs
| Cost Type | Average (TRY) | Description |
|---|---|---|
| Land Registry fee | 1,500 – 3,000 | Administration charge |
| Valuation report | 3,000 – 6,000 | SPK-certified expert report |
| Insurance (DASK + home) | 1,000 – 2,500 | Mandatory and optional policies |
| Notary & power of attorney | 1,000 – 5,000 | Required for foreign buyers |
| Translation & sworn documents | 1,500 – 3,000 | For contracts and passports |
💡 6. Tax advantages
- Capital gains exemption: No tax if held for more than 5 years.
- VAT exemption: For first-time property purchases by foreigners.
- Corporate purchase benefits: Companies can deduct related expenses.
📞 Conclusion and contact
Taxes and fees are crucial to calculate the true return on your investment.
At Inspire Property, we provide clients with tax advisory, cost planning, and compliance consulting for transparent investments.
📩 Contact: info@inspireproperty.com.tr
🌍 Website: www.inspireproperty.com.tr