Taxes in Türkiye

Taxes in Türkiye: What Foreigners Need to Know

Türkiye offers one of the most favorable 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 foreign property owners encounter in Türkiye.

Taxes when purchasing real estate

Title Deed Transfer Tax (Tapu Harcı)

Paid upon registration of the TAPU at the Land Registry Office.

• Amount: 4% of the declared value of the property.
• It is legally divided equally between the buyer and the seller (2% each), though in practice the parties may agree on a different distribution.

Value Added Tax (VAT / KDV)

Depends on the type of property and the tax residency status of the buyer:

• 0% VAT exemption for eligible non-resident foreigners purchasing brand-new properties directly from a developer (subject to statutory conditions).
• 1%, 10%, or 20% standard rates apply in other cases depending on the property specifications.

This makes purchasing new developments in Türkiye particularly profitable in the long term.

Annual property tax

Property owners are required to pay an annual municipal property tax.

Rates:

• 0.1% for residential properties outside metropolitan areas.
• 0.2% for residential properties located within metropolitan municipalities (Alanya falls into this category under Antalya Metropolitan Municipality).

The tax can be paid in a single annual payment or in two equal installments.

Capital gains tax on the sale of real estate

Capital gains tax

If you sell a property within 5 years of the acquisition date, capital gains tax is levied on the net profit.

• The tax rate is progressive and depends on the total net profit.
• If the property has been held for more than 5 years, it is completely exempt from capital gains tax.

This regulation makes long-term real estate investments especially profitable.

Tax on rental income

If the property is rented out, the rental yield is subject to income tax.

• Tax is calculated on the net income after statutory deductions and declared expenses.
• Allowable deductions include maintenance, repairs, aidat, and operational management expenses.
• The income tax rate is progressive, starting from 15%.

We help clients structure the optimal rental management model to optimize tax obligations effectively.

Inheritance and gift tax

Türkiye features very moderate tax rates compared to many European jurisdictions.

• The tax rate depends on the appraised value of the property and the degree of kinship.
• Payment can be scheduled in installments over several years.

This makes real estate an attractive long-term family asset for future generations.

Other mandatory payments

• Aidat: The monthly maintenance fee for residential complex amenities and upkeep.
• DASK: Mandatory Earthquake Insurance, renewed annually.
• Utility services: Water, electricity, and telecommunications.

Why Türkiye's tax system is beneficial

• Low annual property taxation rates
• VAT exemptions and tax incentives for foreign investors
• Full capital gains tax exemption after a 5-year holding period
• Clear and transparent regulatory framework
• Favorable conditions for estate planning and inheritance

Professional Support from Ayvazoglu Homes

We calculate all applicable taxes and transaction costs in advance so you maintain complete clarity over your investment budget—avoiding unforeseen expenses and mitigating legal risks.
We provide comprehensive support for purchasing, managing, renting, and reselling real estate in Alanya.