The Good News First
Foreigners pay the same tax rates as Turkish citizens on property. No surcharges. No special foreign owner tax. The only difference is a slightly higher administrative fee at the TAPU office when you buy.
Turkey's property taxes are low compared to Europe and North America. But 2026 brings changes you need to know about.
Taxes When You Buy
TAPU Transfer Tax: 4%. This is the big one. Calculated on the declared property value. In practice, buyer and seller split it 2% each. On a 200,000 euro property, that's 4,000 euros for your share.
Revolving Fund Fee: approximately 790 euros. A fixed government administrative charge paid at the Land Registry.
Foreign Buyer Administrative Fee: roughly 16,629 TL. This is about 3 times the fee Turkish citizens pay. It's projected to exceed 20,800 TL in 2026. Annoying but not a deal-breaker.
SPK Appraisal: 5,000 to 10,000 TL. Mandatory for foreign buyers. Covers the independent valuation.
Total buying costs: 7% to 10% on top of the property price, including agent commission (typically 3%) and legal fees (1,000 to 3,000 euros).
VAT Exemption for Foreigners. This is a major benefit. Foreign buyers who haven't lived in Turkey for the past 12 months are exempt from 18% VAT on new-build properties. On a 300,000 euro new-build, that's 54,000 euros saved. This applies to first-hand purchases from developers only, not resale.
Annual Property Tax
Turkey's annual property tax is refreshingly simple.
Residential (metropolitan areas like Alanya): 0.2% of assessed value. On a property assessed at 3 million TRY, that's 6,000 TRY per year (roughly 170 euros).
Residential (non-metropolitan): 0.1%.
Commercial: 0.4% metropolitan, 0.2% non-metropolitan.
Land: 0.1% to 0.6% depending on classification.
Payment schedule: Two installments per year. May and November. Pay at the local municipality (belediye).
The 2026 change you must know. Base taxable property values may increase up to 3 times compared to 2025 levels. If your property was assessed at 3 million TRY, it could be reassessed at 9 million TRY. Your annual tax would jump from 6,000 TRY to 18,000 TRY. This hasn't been finalized for all areas, but budget for a significant increase.
Earthquake insurance (DASK) is mandatory. This isn't a tax, but it's required for all property owners. Cost varies by property size and location but is generally 500 to 2,000 TRY annually.
Capital Gains Tax
This is where Turkey gets generous.
Own it for 5+ years: zero capital gains tax. If you hold your property for more than 5 years, you pay nothing when you sell. This is one of the most favorable rules in the Mediterranean.
Sell within 5 years: 15% to 40% progressive tax on your profit. But there are two powerful offsets.
Inflation adjustment. You can adjust your purchase price using Turkey's Producer Price Index (PPI). With Turkey's high inflation, this often eliminates most or all of the taxable gain. Example: buy for 1 million TRY in 2020, sell for 2 million TRY in 2025. If PPI rose 100% in that period, your adjusted cost basis is 2 million TRY. Taxable gain: zero.
Annual exemption. The first 120,000 TRY of capital gains (2025 figure) is exempt from tax. This threshold adjusts annually.
In practice: most foreign buyers who sell within 5 years pay little or no capital gains tax thanks to the PPI adjustment, especially during Turkey's high-inflation years.
Rental Income Tax
If you rent out your property, Turkey taxes that income. Here's how it works.
Exemption threshold: TRY 58,000 per year (2026). If your total rental income is below this, you don't pay tax and don't need to file. This covers most affordable properties rented long-term.
Above the threshold: progressive rates. 15% on the first bracket. Rising to 20%, 27%, 35%, and 40% on the highest bracket. The exact brackets adjust annually.
Deductible expenses reduce your taxable income significantly. You can deduct: mortgage interest payments, maintenance and repair costs, property management fees, insurance premiums, agent commissions, depreciation (on the building, not land), and the annual property tax itself.
Withholding for non-residents. If you're not a Turkish tax resident, your tenant or property manager should withhold 20% of gross rent and pay it to the tax office. You file annually to reconcile.
Double taxation treaties. Turkey has tax treaties with most European countries, the UK, USA, and others. These prevent you from being taxed twice on the same rental income. You'll typically get a credit in your home country for taxes paid in Turkey.
Tax Calendar
January-March: Annual tax return filing for previous year's rental income.
May: First installment of annual property tax due.
November: Second installment of annual property tax due.
Within 15 days of sale: Capital gains declaration if selling within 5 years.
Keep all receipts. Turkish tax offices are increasingly digital, but paper records remain important for expense deductions.
FAQ
Do I pay tax in Turkey and my home country? Possibly. Turkey taxes income earned in Turkey. Your home country may also tax worldwide income. Most countries have double taxation treaties with Turkey that prevent being taxed twice. Consult a cross-border tax advisor for your specific situation.
What if I don't pay property tax? Late payment penalties accrue monthly. Unpaid taxes create a lien on the property, which blocks you from selling. The municipality can eventually initiate enforcement proceedings. Always pay on time.
Can I deduct renovation costs? For rental income: yes. Maintenance, repairs, insurance, and management fees are all deductible. For capital gains: renovation costs increase your cost basis, reducing your taxable gain when you sell.
Is there a wealth tax on property? No. Turkey does not have a wealth tax. You pay only the annual property tax based on the assessed value, not on your total net worth.
Do foreigners pay higher taxes? No. All property tax rates are identical for Turkish citizens and foreigners. The only difference is a higher administrative fee at the TAPU office during transfer, roughly 3 times the domestic rate.
Tax laws change. This guide reflects 2025-2026 rates. Consult a licensed Turkish tax advisor before making financial decisions.
