What Taxes Apply to Buying, Selling and Renting Real Estate in Türkiye?

What Taxes Apply to Buying, Selling and Renting Real Estate in Türkiye?

Owning, purchasing, selling or renting real estate in Türkiye may create different tax and fee obligations. The applicable rules depend on the type of property, the identity and tax status of the parties, how the property was acquired, how long it was held and whether the transaction forms part of a commercial activity.

The financial consequences of a property transaction are not limited to the purchase price and title deed costs. Title deed fees, annual property tax, rental income tax, capital gains tax, valuable housing tax and, in certain transactions, Value Added Tax may also apply.

Incorrect or incomplete declarations may result in additional tax assessments, late-payment interest, tax-loss penalties and disputes between the parties.

1. How is the title deed fee calculated?

The title deed fee is calculated on the transfer price declared at the Land Registry Office. The declared price cannot be lower than the property’s official property-tax value.

Under the general rule:

The buyer pays 2% of the declared price.
The seller pays 2% of the declared price.
The total title deed fee is 4%.

An additional revolving-fund or service fee may also be charged.

The parties may agree between themselves that one party will pay all transaction costs. However, such a private agreement does not automatically remove the statutory liability assigned separately to the buyer and seller.

2. Why should the actual selling price be declared?

The price declared at the Land Registry should reflect the genuine amount agreed and paid by the parties.

Declaring a lower price may result in:

Additional title deed fees
Tax-loss penalties
Late-payment interest
Inconsistencies with banking records
Difficulty proving the real transaction price
Incorrect capital-gains calculations
Payment disputes

The declared transfer price is used to calculate the title deed fee and cannot be lower than the official property-tax value.

Payments should preferably be made through a traceable bank transfer containing a clear description of the property and purpose of payment.

3. Who pays annual property tax?

Buildings, plots and land located in Türkiye are generally subject to property tax.

The taxpayer is normally the registered owner, the holder of a usufruct right or, where neither exists, the person exercising control over the property as an owner.

Where a property is purchased during a calendar year, the new owner’s property-tax liability generally begins in the following year. A buyer acquiring a property in 2026 will therefore normally become liable from 2027.

Outstanding property-tax liabilities should be reviewed before completing the sale.

4. What are the general property-tax rates?

The general rates are:

Residential buildings: 0.1%
Other buildings: 0.2%
Land: 0.1%
Building plots: 0.3%

These rates are doubled within metropolitan municipality boundaries and adjacent areas.

Property tax is calculated using the official tax value rather than the property’s open-market sale price.

5. Is a municipal notification required after purchasing a property?

A notification to the relevant municipality may be required following a purchase, new construction, change of use, subdivision or another event affecting the tax value.

According to the Revenue Administration’s 2026 guidance, a property acquired on 16 July 2026 must be reported by 31 December 2026. A property acquired on 2 October 2026 must be reported within three months of acquisition. Tax liability starts in the following year.

Buyers should verify that ownership, address, area, property type and exemption information have been correctly registered by the municipality.

6. Who may qualify for a zero property-tax rate?

Subject to statutory conditions, a zero building-tax rate may apply to a single residence in Türkiye with a gross area not exceeding 200 square metres.

Potential qualifying categories include:

Individuals with no income
Certain retired persons whose only income is a statutory social-security pension
Persons with disabilities
Veterans
Widows and orphans of martyrs

The Revenue Administration states that persons with disabilities may qualify for the zero-rate treatment for one residence not exceeding 200 square metres without an additional income condition.

The exemption may require an application and supporting documents to be submitted to the municipality.

7. What is rental income tax?

Income obtained from renting residential, commercial or certain other properties may be classified as real estate income and subject to personal income tax.

For rental income earned in 2026, the residential rental-income exemption is TRY 58,000, subject to the applicable conditions.

Where a person owns several rented residences, the exemption is generally applied once to the total residential rental income, not separately to every property. For jointly owned property, each qualifying co-owner may apply the exemption to their own share.

8. What are the declaration limits for commercial rental income?

Commercial rent may be subject to withholding tax by the tenant.

For income earned in 2026:

The declaration threshold for gross commercial rent subject to withholding is TRY 400,000.
The threshold for rental income not subject to withholding or an exemption is TRY 22,000.

The fact that withholding tax has been deducted does not always remove the landlord’s annual declaration obligation. Withholding tax already paid may generally be credited against the final tax calculated.

9. Which expense methods can be used for rental income?

Taxpayers may generally choose between the lump-sum expense method and the actual expense method.

Under the lump-sum method, 15% of the amount remaining after the applicable exemption is treated as an expense. A taxpayer choosing this method may be unable to return to the actual-expense method until two years have passed.

Under the actual-expense method, legally deductible and properly documented expenses may be deducted. Depending on the property and current legislation, these may include maintenance, insurance, management, depreciation and other permitted expenses.

Not every payment connected with the property is deductible. Current rules should be checked before claiming financing costs or acquisition-related expenditure.

10. When does capital gains tax arise on a property sale?

Where an individual sells a residential property, commercial property, plot or land acquired for consideration within five years of acquisition, the gain may be taxable as a capital gain unless the activity is commercial in nature.

The five-year period is calculated by calendar days. A sale after the five-year period generally falls outside the personal capital-gains rules.

The capital-gains exemption for transactions completed in 2026 is TRY 150,000.

The taxable amount is not simply the difference between the purchase and sale prices. Indexed acquisition cost, qualifying expenses and the annual exemption may also be taken into account.

11. How is the taxable capital gain calculated?

The general calculation includes:

Sale proceeds
– Indexed acquisition cost
– Qualifying sale expenses
– Certain taxes and fees
– Annual exemption
= Taxable capital gain

Where the increase in the Domestic Producer Price Index between the relevant acquisition and disposal periods is at least 10%, the acquisition cost may be indexed.

Purchase documents, title deed receipts, bank records and invoices should be retained to support the calculation.

12. What happens when inherited or gifted property is sold?

Property acquired without consideration, such as by inheritance or gift, is generally outside the five-year capital-gains rule.

The Revenue Administration’s guidance states that income arising from the sale of a property inherited without consideration is not taxed as a capital gain under this rule.

Inheritance or gifts may nevertheless create separate inheritance and transfer-tax obligations. Repeated or organised sales may also be treated as commercial activity.

13. Can repeated property sales be treated as business income?

Where property transactions are repeated, organised and carried out with a commercial purpose, the resulting income may be classified as business income rather than a personal capital gain.

Relevant factors may include:

Number and frequency of transactions
Continuity over several years
Properties purchased specifically for resale
Construction or development activities
Existence of a business organisation
Commercial marketing and sales activity

The classification depends on the purpose, continuity and organisation of the transactions.

Business classification may create additional obligations concerning income or corporate tax, VAT, invoicing and tax registration.

14. Does Value Added Tax apply to property sales?

The occasional private sale of an individually owned property is not treated in the same way as a sale by a developer, property-trading business or commercial enterprise.

VAT treatment may depend on:

The seller’s tax status
Whether the sale forms part of a business activity
Whether the property is residential, commercial or land
The property’s physical and legal characteristics
The date of the transaction
Any available statutory exemption

The Turkish VAT legislation regulates taxable property supplies and relevant exemptions separately.

When purchasing from a developer or company, the contract should state clearly whether the advertised price includes VAT.

15. What is valuable housing tax?

Residential properties in Türkiye whose official building tax value exceeds the statutory threshold may be subject to valuable housing tax.

The threshold for 2026 is TRY 17,711,000. The relevant figure is the official building tax value determined under the property-tax rules, not the estimated open-market price.

Where a taxpayer owns more than one qualifying residence, one residence with the lowest tax value may qualify for an exemption, although a notification may still be required.

Valuable housing tax is separate from ordinary annual property tax.

16. Which documents should be retained?

Property owners and transaction parties should retain:

Title deed records
Purchase and sale agreements
Deposit agreements
Bank-transfer receipts
Title deed fee receipts
Property-tax payment records
Lease agreements
Rental payment records
Valuation reports
Estate-agency invoices
Maintenance and repair invoices
Insurance policies
Municipal notifications
Inheritance and gift documents
Tax declarations and payment receipts

Proper documentation is particularly important where actual expenses are claimed or a capital gain must be calculated.

17. Common tax mistakes

Common mistakes include:

Declaring a sale price lower than the actual price
Failing to declare taxable rental income
Assuming that withholding always removes the need to file a return
Applying the residential exemption separately to every property
Claiming unsupported expenses
Ignoring a sale completed within five years
Failing to retain acquisition and transaction documents
Missing the municipal property-tax notification
Confusing market value with the valuable-housing-tax value
Treating repeated commercial sales as private transactions

Property transactions should be carried out using accurate declarations, banking records and properly retained documents.

Conclusion

Real estate taxation is not limited to the title deed fee paid at the time of transfer. Purchasing, owning, renting, selling, inheriting or commercially developing property may create different tax consequences.

Buyers and sellers should declare the true transaction price and clarify title deed fees, VAT and other costs before completing the sale. Owners should monitor property tax, rental income declarations and any valuable housing tax liability.

The acquisition date is particularly important for sellers because a sale within five years may create taxable capital gains. Inheritance, gifts, construction-for-land-share projects, company-owned property and repeated sales require separate professional analysis.

Legal Notice: This content is provided for general information only. Exemptions, declaration thresholds, tax rates and payment deadlines may change each year. Every property and taxpayer has different circumstances. Current guidance from the Turkish Revenue Administration should be reviewed, and advice from a certified public accountant, sworn-in certified public accountant or tax-law professional should be obtained before completing a binding transaction or filing a tax return.