Both when buying and selling real estate in Turkey, tax is levied on the buyer and seller. By the way, the tax on real estate in Turkey for foreigners does not differ from taxes for citizens of the country, which is typical of many European powers and is a big plus for an investor from abroad. In the case of purchase and sale, the cost of buying an apartment depends on its cadastral value and is 4 percent.

Also, property owners pay a state duty every year in the amount of 0.02% to 0.06% of the value, which depends on the type of real estate: residential, commercial, land plots with or without a building permit. If we consider residential real estate in the primary or secondary market, the annual tax is 0.02%. The so-called “kültür payı” or cultural contribution is automatically included in the annual property tax. As a rule, this fee is paid twice a year, dividing the entire amount into two equal parts.In general, it is worth noting that taxes in the Republic of Turkey are not high. Every year, the government introduces many useful amendments designed to further simplify taxation, make it as accessible and transparent as possible.

How do I pay taxes?
The tax percentage is calculated based on the cadastral value of the apartment. Today there is a new law on the sale of real estate in Turkey, according to which a special body evaluates housing. This amount is displayed in the TAPU and it is from it that the tax is paid. In general, such an assessment (cadastral value) will in fact be lower than the market value.

Payment is made twice a year at the district municipality. The first payment – until May, the second – until November, or you can transfer the entire amount at once. You need to take a TAPU (title deed) with you and already on the spot the employee will give you a form to fill out and pay. For example, in Alanya, tax payment can be made online on the website of the city municipality. To do this, you will need to go to Beledia and get a special password. This option is convenient for those who do not know Turkish.

Property rental tax

The resulting rental income in Turkey is tax deductible. It depends on the total profit. Individual income tax in Turkey for a legal entity always corresponds to 22% of the income received. Of course, there are cases when landlords negotiate with tenants and pay cash in order to avoid income. Nevertheless, it is worth knowing that every year control over illegal activities by the state is increasing and it will be more and more difficult to resolve such issues in this way.
If the profit of a private owner from renting does not exceed 4800 liras (about 730 €), then this fee may not be charged. For commercial properties, the tax-free limit is TL 30,000 (approximately € 4600).


Tax on income from the sale of real estate
Turkey has a tax on income from the sale of real estate. For a legal entity, such payment is 22% of the received net profit. A private seller may not pay this fee if he has owned Turkish property for more than five years. However, a property purchase tax of four percent is payable by the buyer in any case, regardless of the length of the ownership.
If the house is sold before the five-year period of use, tax is provided on the amount that is the difference between the purchase price, based on the TAPU and the new valuation, which will be indicated in the next certificate of ownership.
If the profit is not more than 11,000 liras (about 1,700 euros), then the fee is not expected. It should be noted that in the process of buying / selling housing in Turkey, many clients turn to specialized agencies. In this case, the Power does not provide for fixed rates as a reward for the assistance provided. That is, all the nuances are solved individually in the process of communication. In some cases, bargaining is appropriate.