Buying a home in Istanbul costs more than its price, and owning it costs a little every year. The good news is that the Turkish system is simple once it is laid out: one fee when the title changes hands, VAT only on brand-new homes, a small annual property tax, income tax on rent above an exemption, and no tax at all on a sale after five years.
This guide walks through each of them in the order you meet them (buying, owning, renting out and selling), with the rates in force in September 2026 and the changes made by the laws passed in 2025 and 2026.
At a glance
| Tax or cost | 2026 rule | Who pays |
|---|---|---|
| Title deed fee | 4% of the declared price (2% + 2%) | Buyer and seller |
| VAT on a new build | 10%; 20% on area above 150 m² | Buyer, in the price |
| VAT exemption | For non-residents paying in foreign currency, if kept 3 years | No one |
| Valuation report | Only for citizenship purchases since 2024 | Buyer |
| Annual property tax | 0.2% of the tax value for homes in Istanbul | Owner |
| Valuable housing tax | 0.3%–1% above a 17,711,000 TL tax value | Owner of more than one home |
| Tax on rent | 15%–40% above a 58,000 TL exemption | Owner |
| Capital gains tax | None after 5 years; 15%–40% before | Seller |
When you buy
The title deed fee
The title deed fee (tapu harcı) is the main tax on any purchase. It is 4% of the price declared at the land registry, and the law divides it evenly: 2% from the buyer and 2% from the seller. The two sides can agree a different split in the sales contract. Developers usually share it as the law says; private sellers of resale homes often ask the buyer to pay the full 4%, so check this before you sign.
The declared price cannot be lower than the property's registered tax value, and since Law No. 7566 of December 2025 under-declaring it is expensive. The penalty for a price written below the real one rose from a quarter to the full amount of the missing fee, on top of the fee itself. Declare the price you actually pay.
The land registry also charges a small revolving fund fee (döner sermaye) per transaction. In 2026 it is a few thousand lira in Istanbul, and the buyer usually pays it.
VAT on new builds
VAT (KDV) applies only to the first sale of a new building, normally from the developer to you. A resale between private owners carries no VAT.
For homes with a building permit dated 1 April 2022 or later, the rate no longer depends on location or land value:
| Net floor area | VAT rate |
|---|---|
| Up to 150 m² | 10% |
| Above 150 m² | 10% on the first 150 m², 20% on the rest |
| Commercial units | 20% |
Older permits follow the previous rules, where many smaller homes paid 1% and the rate for luxury homes in metropolitan areas depended on the land's unit value. A developer quotes prices including VAT, but ask which rate your unit carries, because it can change the total by several points.
The VAT exemption for foreign buyers
A non-resident who buys a first-hand home or workplace can be exempt from VAT under Article 13/i of the VAT Law, as long as:
- the price is paid in foreign currency brought into Türkiye from abroad, with part of it arriving before the invoice and the rest within a year;
- you are not a Turkish tax resident (you do not live in Türkiye for more than six months of a calendar year); and
- you do not sell the property within three years. The period was one year until April 2022.
If the property is sold earlier, the VAT that was not charged, plus interest, must be paid before the title can be transferred. The developer and the buyer are jointly responsible when the conditions were not met, so the paperwork (bank records of each transfer from abroad) matters.
Who qualifies, how to pay and each step are in our VAT exemption guide. To compare your costs with and without VAT, use our closing costs calculator.
Other costs at purchase
- Valuation report. No longer required for an ordinary purchase by a foreigner; the rule was abolished in 2024. It remains part of a purchase for citizenship, where the land registry has the valuation prepared through its own system.
- Earthquake insurance (DASK). Compulsory for every home and checked at the title transfer. Since 5 September 2026 the seller's policy ends on the day of the sale, so the buyer needs a policy in their own name before the transfer. The premium depends on the size, the construction type and the earthquake zone; for a typical 100 m² concrete flat in Istanbul it is a few thousand lira a year.
- Secure payment. From 1 October 2026 the price of every sale paid in cash or by bank transfer goes through the land registry's Secure Payment System: it waits in a blocked account and reaches the seller when the title is registered. Its fee is deducted from the seller's proceeds.
- Notary and translation. A sworn translator is required at the land registry if you do not speak Turkish, and a notarised power of attorney if someone signs for you. A notarised promise-to-sell contract carries no stamp duty.
- Agent's commission. Not a tax, but a real cost. Agree it in writing before viewings start.
While you own it
The annual property tax
Every owner pays an annual property tax (emlak vergisi) to the municipality. It is charged on the property's registered tax value, which is usually far below its market price. Istanbul is a metropolitan municipality, so the rates are double the national ones:
| Property type | Rate in Istanbul |
|---|---|
| Home | 0.2% |
| Commercial or other building | 0.4% |
| Building plot | 0.6% |
| Agricultural land | 0.2% |
The tax is paid in two equal instalments: by the end of May and by the end of November. You can pay online or at the municipality. Owners of a single home of up to 200 m² who are retired, disabled or without income can apply for an exemption.
What changed in 2026. Tax values are reset every few years, and 2026 was a reset year. Because new land values would have multiplied some bills, Law No. 7566 capped every property's 2026 value at three times its 2025 value. For 2027 to 2029 the value will rise each year by the full official revaluation rate, so expect the bill to follow inflation.
The valuable housing tax
Homes with a registered tax value above 17,711,000 TL in 2026 also pay the valuable housing tax (değerli konut vergisi), charged only on the part above that line:
| Tax value in 2026 | Rate on the part above the threshold |
|---|---|
| 17,711,000 – 26,567,000 TL | 0.3% |
| 26,567,000 – 35,425,000 TL | 26,568 TL + 0.6% |
| Above 35,425,000 TL | 79,716 TL + 1% |
An owner with only one home is exempt. Because tax values rose in 2026, more homes now reach the threshold than before, so owners of several large apartments should check their values.
When you rent it out
Rent from a home in Türkiye is taxable in Türkiye, whether or not you live there.
- Exemption. The first 58,000 TL of residential rent earned in 2026 is exempt (it was 47,000 TL for 2025). It does not apply to people with business income or to those whose total income passes a set limit, and it is lost if the rent is not declared in full.
- Expenses. You can deduct your actual costs, or simply 15% of the rent as a lump sum. Since 2025, loan interest can no longer be deducted on residential rentals.
- Rates. What remains is taxed with your other Turkish income at progressive rates:
| Taxable income in 2026 | Tax |
|---|---|
| Up to 190,000 TL | 15% |
| 190,000 – 400,000 TL | 28,500 TL + 20% of the excess |
| 400,000 – 1,000,000 TL | 70,500 TL + 27% of the excess |
| 1,000,000 – 5,300,000 TL | 232,500 TL + 35% of the excess |
| Above 5,300,000 TL | 1,737,500 TL + 40% of the excess |
The return is filed in March of the following year, and the tax is paid in two halves, in March and July. Non-residents file too, through a tax representative or the tax office where the property is.
When the tenant is a company, it withholds 20% of the gross rent and pays it to the tax office for you. A lease of a home to a private tenant carries no stamp duty; commercial leases pay 0.189% of the total rent for the term.
To work out your own figure, use our rental income tax calculator. It also explains the deductions, the declaration and what happens if rent is not declared.
When you sell
Capital gains tax and the five-year rule
The single most useful rule for investors: a property sold more than five years after it was bought is free of capital gains tax. Inherited and gifted property is outside the tax altogether.
If you sell within five years, the gain is taxed. It is worked out as the sale price minus what you paid, where:
- the purchase cost is adjusted for inflation (by the producer price index) when prices have risen by 10% or more since you bought;
- purchase costs such as the title deed fee are added to the cost; and
- the first 150,000 TL of gains in 2026 is exempt.
The rest is taxed at the same 15%–40% rates as rent, declared in March of the following year. To see what your own sale would owe, use our capital gains tax calculator: enter the dates and prices, in lira, dollars or euros.
Holding periods that affect a sale
Two other clocks can matter as well. If you bought with the VAT exemption, selling within three years brings the VAT back. If you bought for Turkish citizenship, the property must be kept for three years, as noted on the title deed. See our citizenship guide.
Inheritance and gifts
Property passed to heirs is subject to inheritance tax at 1% to 10%, after an exemption of 2,907,136 TL per child or spouse in 2026 (5,817,845 TL for a spouse who is the only heir). Gifts are taxed at 10% to 30% above an exemption of only 66,935 TL, with the rates halved when a parent gives to a child or one spouse to the other.
New in 2025 and 2026
- Law No. 7566 (December 2025): a cap on the 2026 property tax values, full inflation increases from 2027, a heavier penalty for under-declared title deed prices, and no interest deduction on residential rent.
- Law No. 7582 (June 2026): people who become tax resident in Türkiye from 2026, after three years without Turkish residence, can apply for a 20-year exemption on their foreign income, with a 1% inheritance tax rate during the period. Rent and gains from Turkish property remain taxable.
- Secure Payment System (from 1 October 2026): the price of a sale is held in a blocked account and released when the title is registered.
- No change to the title deed fee rate, the VAT rates, the VAT exemption for non-residents or the five-year rule on capital gains.
A worked example
Consider a resale apartment in Istanbul bought for 12,000,000 TL by a foreign buyer who pays the whole title deed fee, as sellers of resale homes often ask:
| Cost | Amount |
|---|---|
| Title deed fee, 4% | 480,000 TL |
| Revolving fund fee | a few thousand TL |
| Earthquake insurance, first year | a few thousand TL |
| Taxes and official costs | about 490,000 TL, or 4.1% |
If the apartment's registered tax value is 4,000,000 TL, the annual property tax is 0.2% of it: 8,000 TL a year. Sold after five years, it owes no capital gains tax. Add legal, translation and agency fees to reach the full cost of the purchase.
The mistakes we see most
- Writing a lower price on the deed. It used to be common; since 2026 the penalty equals the whole missing fee.
- Assuming the seller pays half the title deed fee. On resale homes, agree it in writing first.
- Transferring the money the wrong way. The VAT exemption needs foreign currency sent from abroad and a paper trail for every payment.
- Selling too soon. Within five years there is capital gains tax; within three, a VAT exemption or a citizenship application can be lost.
- Not declaring rent. The exemption disappears, and back taxes and penalties follow.
Sources
- Fees Law No. 492 (title deed fee) (opens an external site)
- VAT Law No. 3065, Article 13/i (opens an external site)
- Your Key Türkiye (Presidency Investment Office): frequently asked questions on property purchases (opens an external site)
- Ministry of Trade: Secure Payment System start date (opens an external site)
- Law No. 7566, Official Gazette of 19 December 2025 (opens an external site)
- Revenue Administration: 2026 rental income guide (opens an external site)
- Revenue Administration: 2026 guide to capital gains and other income (opens an external site)
- KPMG: Law No. 7566 published (opens an external site)
- KPMG: 2026 inheritance and gift tax exemptions and brackets (opens an external site)
- EY: 20-year tax exemption for new residents (Law No. 7582) (opens an external site)
- DASK: tariff and premiums (opens an external site)
This guide is general information, not tax or legal advice. Amounts are the 2026 figures and change every year. Confirm your own situation with a Turkish tax adviser or lawyer before you buy or sell.
Frequently asked questions
12 questions foreign buyers ask us most, grouped by topic.
Buying
How much is the title deed fee in Turkey?
4% of the price declared at the land registry, split by law into 2% for the buyer and 2% for the seller. The declared price cannot be lower than the property's registered tax value. In practice the split is set in the sales contract, and on resale homes buyers are often asked to cover both halves.
Do foreigners pay VAT when they buy a new-build home?
VAT of 10% (and 20% on floor area above 150 m²) is due on the first sale of a new home. A non-resident foreign buyer can be exempt if the price is brought into Türkiye in foreign currency and the property is not sold within three years. If it is sold earlier, the unpaid VAT and interest must be settled before the transfer.
Is VAT due on a resale property?
No. VAT applies only to the first delivery of a building, normally by the developer. A resale between private individuals carries the title deed fee but no VAT.
Do foreigners need a valuation report to buy?
Not for an ordinary purchase. The general requirement was abolished in 2024. A valuation is needed only when the purchase is for Turkish citizenship, where the land registry has it prepared through its own system. Foreign buyers do need a currency purchase certificate showing the price was converted at a Turkish bank.
Owning
How is the annual property tax calculated?
On the registered tax value of the property, not its market price. In Istanbul the rate is 0.2% a year for homes and 0.4% for commercial buildings. It is paid in two instalments, by the end of May and by the end of November.
Why did my property tax go up so much in 2026?
2026 was a general revaluation year, when municipalities set new unit values for land. To limit the jump, Law No. 7566 capped each property's 2026 value at three times its 2025 value. From 2027 to 2029 the value rises each year by the full revaluation rate.
What is the valuable housing tax?
An extra annual tax on homes with a registered tax value above 17,711,000 TL in 2026. It is charged only on the part above that threshold, at 0.3% to 1%. An owner with a single home is exempt.
Renting out
Do I pay tax on rent from my apartment in Istanbul?
Yes, above an annual exemption. For rent earned in 2026, the first 58,000 TL from a home is exempt, and the rest is taxed at 15% to 40% after expenses. You file a return in March of the following year. Non-residents file too, through a tax representative or the tax office where the property is.
Is there stamp duty on a rental contract?
A lease of a home to a private individual who lives in it is exempt. Commercial and company leases carry stamp duty of 0.189% of the total rent over the contract term.
Selling
Do I pay capital gains tax when I sell?
Only if you sell within five years of buying. After five full years the gain is tax-free. Within five years, the gain after inflation adjustment and a 150,000 TL annual exemption (for 2026) is taxed at 15% to 40%.
Can I sell a property I bought with the VAT exemption or for citizenship?
Yes, once the holding period has passed (three years for the VAT exemption, and three years for citizenship, which is also noted on the title deed). Selling earlier costs the VAT relief in the first case and puts the citizenship application at risk in the second.
Is there inheritance tax on property in Turkey?
Yes, at 1% to 10%, after an exemption of 2,907,136 TL per child or spouse in 2026 (5,817,845 TL for a spouse who is the only heir). Gifts are taxed at 10% to 30% above a much smaller exemption.
