Property taxes in Turkey for foreigners

Buying an apartment in Turkey involves more than just the property price. Taxes and registration fees are added to the real estate price, along with an annual property tax, and a rental income tax if the apartment is rented out. Additionally, a capital gains tax may arise upon sale.

At the same time, the common perception that foreigners pay separate, higher real estate taxes does not reflect the general tax system. The primary taxes apply depending on the property type, acquisition method, and transaction nature.

Understanding these payments is especially crucial before signing a contract. Some expenses occur once upon purchase, while certain obligations may persist throughout the entire ownership period.

What Taxes Are Paid When Buying an Apartment in Turkey

The primary payment during property registration is tapu harcı, the title deed transfer tax.

In 2026, the rate is 4% and is split equally:

• 2% of the transaction value for the buyer
• 2% for the seller

The tax base is the declared actual transaction value, which cannot be lower than the tax value established by the municipality.

For example, if an apartment is purchased for 5,000,000 TL, the buyer’s legal share of the tapu harcı is 100,000 TL. Another 100,000 TL falls on the seller. The parties may agree that economically the buyer covers the full amount for both sides, so this detail should be specified in the contract in advance.

Besides tapu harcı, the registration process includes paying döner sermaye, a Cadastral Office service fee. Its amount depends on the parameters of the specific transaction and is reviewed annually.

VAT: Not Always Included in the Apartment Price

When buying new property directly from a developer, KDV (Value Added Tax) may apply. Its rate depends on the property characteristics and specific sales terms.

For certain foreign buyers, a KDV exemption is available on their first real estate purchase, provided that legally established conditions are met, including specific buyer requirements and transferring the payment in foreign currency to Turkey.

This exemption does not automatically apply to every apartment and requires verification for each specific transaction.

Therefore, before purchasing a new build, it is essential to clarify whether KDV is included in the stated price, whether the exemption applies, and what rate is effective for that specific unit.

What a Property Owner Pays Annually

After the purchase, Emlak Vergisi (annual real estate tax) arises.

For residential properties, the base rate is:

• 0.1% of the property's tax value
• 0.2% within the boundaries of major metropolitan areas

It is the tax value, rather than necessarily the market price, that is used to calculate Emlak Vergisi.

For instance, if the property's tax value is 3,000,000 TL in a major city, the base tax calculation will be 6,000 TL per year.

Separately, there is Değerli Konut Vergisi, a tax on high-value residential property. It applies to properties whose tax value exceeds a legally established threshold. In 2026, this threshold is 17,711,000 TL.

This is important to consider when buying luxury apartments and villas. A high market price alone does not automatically trigger this tax; what matters is the official tax value and calculation rules.

If the Apartment Is Rented Out: Rental Income Tax

Renting out an apartment creates a separate tax obligation: Gelir Vergisi (income tax on property rental).

For residential rentals in 2026, an annual tax-exempt allowance of 58,000 TL applies, subject to statutory conditions. If income exceeds this threshold, the owner must check whether they are required to submit an annual tax return.

The tax is not calculated simply as a flat percentage of total gross rent received. The law allows expenses to be deducted depending on the selected calculation method.

The final tax depends on applicable deductions, allowances, and the taxpayer’s total overall income.

For foreign owners, determining their tax residency status in Turkey and the income filing procedure is particularly critical.

What Happens When Selling the Apartment

When selling real estate within five years of acquisition, a capital gains tax (Değer Artışı Kazancı) may apply, ranging from 15% to 40% depending on the net profit.

For an individual, selling a property acquired for consideration within five years can generate taxable capital gains. If five full years have passed, the proceeds from such a sale generally fall outside this tax category. The period is calculated precisely by days.

The calculation considers more than just the simple difference between the purchase price and the sales price. Certain selling expenses, taxes, and fees can be deducted from the revenue. When eligible conditions are met, the acquisition cost is indexed using the Domestic Producer Price Index (Yİ-ÜFE).

For 2026, the tax-exempt capital gains threshold is 150,000 TL.

If an individual systematically buys and sells real estate, the activity may be classified differently from a standard sale of personal property, in which case the income may be treated as commercial revenue.

Key Budget Items to Consider

When buying an apartment, a foreign buyer should categorize expenses into three groups in advance.

At purchase:

• Title deed transfer tax (tapu harcı) — usually 2% for the buyer.
• Applicable VAT (KDV) — when purchasing from a developer.
• Cadastral Office & processing fees (döner sermaye and other expenses).

During ownership:

• Annual property tax (Emlak Vergisi).
• High-value housing tax (Değerli Konut Vergisi) — applies to high-value properties.
• Rental income tax — paid when renting out the property.

At sale:

• Seller's title deed transfer tax (seller's tapu harcı).
• Capital gains tax — possible if sold within five years of purchase.
• Additional transaction closing costs.

You should account for more than just the listing price. Always check VAT for new developments, tax values for luxury assets, rental taxes for investment units, as well as holding periods and potential capital gains tax if resale is planned.

Before placing a deposit, it is prudent to obtain a breakdown of all taxes specifically for the target property and deal structure. This ensures you see the true cost of acquisition before signing contracts rather than after receiving the TAPU.