Property Taxes in Turkey in 2023
Purchasing Tax (Title Deed Tax):
First thing you have to know is the purchasing tax that needs to be paid to the government which is 4% of the sales price of the property. In most cases, it is divided into two as to be paid 2% each by the buyer and seller. Usually when you buy a brand new apartment by the developer, the tax will be divided equally. When you buy a resale property from an individual, usually the whole 4% is requested to be paid by the buyer.
VAT (Value Added Tax):
When you are thinking to buy a property in Turkey, you should surely take into account the closing costs which are one time payments while receiving the title deed / ownership of the property.
While buying a brand new apartment through a developer, VAT should be paid to the government at the delivery of the property. Usually this VAT will be included in the sales price which is offered for you.
Check Intensives part to get more information about the VAT Exemption applied for the first time foreign buyers. You can also contact us to get furher information about the subject.
For Commercial Properties;
It is 18% in all scenerios.
For Residential Properties;
It changes from 1% to 18%.
- 8% VAT will be asked for apartments with net area less than 150 m2
- 18% VAT will be asked for apartments with net area more than 150 m2
The idea here stated by the government is that those who can afford to buy a very big residential apartment should pay more tax which is 18%.
Besides this, a new law was passed in 2013 which changed the VAT for apartments depending on the m2 value of their lands.
– If the building permission was taken after between 01.01.2013 to 31.12.2016 for a residential project, and if m2 value of the land of the residential project is 500TL/m2 and less; 1% VAT will be applied.
– If the building permission was taken after 01.01.2017 for a residential project, and if m2 value of the land of the residential project is 1000TL/m2 and less; 1% VAT will be applied.
Yearly Property Tax
When you own a property in Turkey, yearly property tax should be paid also every year to the tax office. Cities are divided into two categories as big and small cities. Taxes are calculated depending on the category and property type. For residential properties for instance in Istanbul, %0,2 of the value of the apartment should be paid to the government for each year.
| Property Type | Big Cities Tax | Small Cities Tax |
| Residential Properties | %0,2 | %0,1 |
| Commercial Properties | %0,4 | %0,2 |
| Farms | %0,2 | %0,1 |
| Lands | %0,6 | %0,3 |