Property Taxes in Turkey for Foreign Owners: What You Pay When You Buy, Hold, Rent, and Sell

Taxes are where Turkish real estate quietly outperforms almost every comparison market. There is no wealth tax, no non-resident surcharge like Spain's, no stamp duty ladder like the UK's, and a five-year rule that can make your entire capital gain tax-free. Here is the full map, stage by stage.

When You Buy

• •Title deed transfer tax: 4 percent of the declared sale price, legally split two percent each between buyer and seller, though in practice negotiation decides. Paid at the registry on transfer day.
• •VAT on new builds: residential units under 150 m² net carry reduced rates of 1 or 10 percent depending on classification; larger units and commercial property carry 20 percent. Developer list prices normally include VAT, but confirm it in writing.
• •VAT exemption for foreign buyers: first-time purchases of new builds from developers are VAT-exempt for foreigners without Turkish residency, provided you pay in foreign currency and hold the property for one year. On a 20 percent VAT unit this is enormous; make your eligibility part of the negotiation.
• •One-time fixed fees, covered in our buying costs guide, add a few hundred dollars.

While You Hold

Annual property tax (emlak vergisi) is charged on the municipal registered value, which typically sits well below market value:

Istanbul, Antalya, Izmir, and the other big cities are metropolitan, so a residential apartment there pays 0.2 percent. In practice, an apartment worth 250,000 USD at market often carries an annual bill of a few hundred dollars. Payment is twice yearly, May and November, and handled online in minutes.

Add two small recurring items: mandatory DASK earthquake insurance, 50 to 150 USD per year, and a "valuable housing tax" that applies only above a high threshold, around 15 million lira registered value, touching only the top of the luxury market.

When You Rent It Out

Rental income is taxable in Turkey regardless of where you live, on a progressive scale from 15 percent to 40 percent. Before panicking at the top rate, understand the deductions:

• •An annual exemption applies to residential rental income below a threshold updated yearly.
• •You then choose between the lump-sum method, deducting a flat 15 percent of gross income with no receipts, or the actual expense method, deducting insurance, maintenance, depreciation at 2 percent of the property cost per year, and interest. Depreciation alone often shelters a large share of income in the early years.

Worked example at 2026 brackets: 12,000 USD of annual rental income with the lump-sum deduction lands an effective tax bill around 15 to 20 percent of gross for most single-property owners. Short-term rental income is treated as commercial income with different rules and mandatory licensing, so factor that into any Airbnb underwriting.

Check your home country's double taxation treaty: Turkey has treaties with more than 85 countries, so tax paid in Turkey generally credits against home liability rather than doubling it.

When You Sell

Capital gains tax applies on the difference between your indexed purchase price and sale price, at the same 15 to 40 percent progressive scale. Two rules do the heavy lifting:

1. 1.The five-year exemption. Sell after five full years of ownership and the entire gain is exempt for individuals. Zero. This single rule shapes rational holding periods for foreign investors.
2. 2.Inflation indexation. Sell before five years and your purchase cost is indexed to producer-price inflation first, which in Turkey's inflationary environment eliminates much of the nominal lira gain.

Note the interaction with the citizenship program's three-year hold: citizenship investors who wait two extra years exit tax-free.

Inheritance

Turkish property passes under inheritance rules with tax of 1 to 10 percent on a progressive scale, low against most European regimes. Spouses and children benefit from meaningful exemptions. A Turkish will covering your Turkish assets, drafted for a few hundred dollars, saves your heirs months of cross-border paperwork.