Taxes in Turkey

Taxes in Turkey: What Foreigners Need to Know

Turkey offers one of the most lenient and transparent tax systems for foreign property buyers and investors. This is why the country, and Alanya in particular, remains an attractive destination not only for living but also for long-term investments with an eye to the future.

Below are the main taxes that foreigners face in Turkey.

Taxes when purchasing real estate

Transfer Tax (Tapu Harcı)

Paid upon registration of the TAPU.

• Amount: 4% of the cadastral value of the property
• It is usually divided between the buyer and seller (2% each), but in practice the parties may agree otherwise.

VAT (KDV)

Depends on the type of property and the status of the buyer.

• 0% VAT for foreigners when purchasing new real estate from a developer (subject to certain conditions)
• 1%, 8% or 20% are standard rates for other cases

This makes purchasing new buildings in Turkey particularly profitable in the long term.

Annual property tax

Property owners are required to pay an annual tax to the municipality.

Rates:

• 0.1% - housing outside the metropolitan area
• 0.2% - housing within the metropolitan area (Alania falls into this category)

The tax is paid once a year or in two equal payments.

Tax on the sale of real estate

Capital gains tax

If you sell a property less than 5 years after purchase, a tax on the gain is levied.

• The rate depends on the amount of income
• If the property has been owned for more than 5 years, no tax is levied.

This makes long-term investments particularly profitable.

Tax on rental income

If the property is rented out, the income is subject to taxation.

• Tax is paid on net income
• Deductions are allowed (maintenance, repairs, aidat, etc.)
• The rate is progressive - from 15%

We help clients choose the optimal rental model, taking into account future tax burdens.

Inheritance and gift tax

Turkey has low rates compared to many European countries.

• The rate depends on the value of the property and the degree of kinship
• Payment can be split over several years.

This is important for those who view real estate as a family asset for the future.

Other mandatory payments

• Aidat is a monthly fee for servicing the complex.
• DASK — Mandatory Earthquake Insurance
• Utilities - water, electricity, internet

Why Turkey's tax system is beneficial

• Low annual taxes
• Benefits for foreigners
• No property tax as such
• Transparent rules
• Favorable conditions for investments and inheritance

Escort from Ayvazoglu Homes

We calculate all taxes and expenses in advance so you have a clear understanding of your budget—avoiding surprises today and risks tomorrow.
We provide assistance with purchasing, owning, renting, and selling real estate in Alanya.