Taxes on real estate purchase in Turkey in 2021

Property tax in Turkey is considered very low compared to other highly developed countries in Europe. Additional costs and taxes depend on the status of real estate and the conditions of purchase: real estate location, a purchase from the developer, or the owner.

Tax on real estate purchased in Turkey

The procedure for the transfer of ownership is carried out at the Cadastral Office, and the property tax in Turkey for foreigners is paid at the same institution.

Important! Only this state structure is authorised to deal with the re-registration and transfer of TAPU.

When purchasing real estate, the buyer is obliged to pay a tax of 4% of the cadastral value to the Turkish treasury.

Additional costs to consider when purchasing real estate:

• service charge - about 180 lira;
• taxation when applying for TAPU - approximately 600 lira:
• notarised translation of all documents - 400 - 500 lira;
• DASK real estate insurance – 150 lira.

Also, when purchasing real estate, an additional working capital tax is levied. In 2021, the fee of about 1120 Turkish lira for foreigners is charged to improve the work of a state institution.

Annual tax

All owners of Turkish real estate are required to pay annual taxes, regardless of the object of ownership - an apartment, commercial premises, land plot, or villa. Turkey is a country with favourable conditions for real estate maintenance and low taxes.

The annual property tax in Turkey is only 0.2 - 0.6% of the real estate value. It is determined by the amount registered in TAPU. Also, the payment depends on the type of real estate and its location. The annual tax is 0.2% of the assessed value in big cities for apartments and penthouses.

Please note that there is no fee for the land plot adjacent to the house.

Ways to pay property tax

Payment of property tax in Turkey is possible in two ways: by visiting belediye, the city administration, or via the Internet.

To pay at the municipality, you will need only a copy of TAPU. No additional documents are required. Contributions are made twice a year - in May and November. If payment is delayed for some reason, say for a couple of months, the owner pays a small fine.

Payment can be made via the Internet on the website of the city municipality. 

Go to the website E-BELEDIYE.ALANYA.BEL.TR, enter the tax number in the field. After entering the data, a window will open on the screen with annual tax debts. Choose the payment type and enter bank card details linked to any Turkish bank. As soon as the payment is made, you will see a confirmation on the screen. The paid invoice can be printed and attached to the document storage folder.

The legal sale of real estate

Income received from the sale of real estate is taxed in Turkey. So, for a legal entity, the duty is 20%. Individuals are not required to pay this tax if the property being sold has been in their ownership for at least five years. Individuals must pay a tax on the purchase of the real estate, 4% of the cadastral value of the real estate. By law, this tax is paid by both the buyer and the seller - in equal parts.

If the seller owned real estate for less than five years, he is liable to pay the tax levied on the difference between the initial price of the real estate indicated in TAPU and the price revalued by the local authorities in the new TAPU.

When purchasing real estate in Turkey, you need to understand the specifics of buy-sale agreements for foreigners. What information TAPU contains, how many owners are allowed per real estate, and how to get a residence permit - our company, the international real estate agency New Time Investment, will help deal with these issues. We cooperate only with reliable developers in Alanya, assist in the registration and purchase of the real estate in Turkey on favorable terms. Our managers will select a liquid real estate, advise and accompany you at every stage of the buy-sale agreement.