Buying Property in Turkey: Legal and Tax Aspects – 2025

Acquiring a property is often associated with emotions, dreams, and fond memories of a cherished place. However, in addition to the excitement about the property, its location, and its legal status, it is crucial to carefully consider the associated costs to avoid unpleasant surprises. These range from acquisition-related fees to taxes in the event of inheritance.

Below you will find a detailed overview of the costs and legal obligations to be taken into account in Turkey when acquiring, using, selling, gifting, or inheriting real estate.

Which costs arise when acquiring a property?

Land Registry Fees

The purchase takes place directly at the Land Registry Office (Tapu Office), where buyer and seller typically each pay 2% of the purchase price as land registry fees. However, this cost split can be negotiated on an individual basis. Even if one party assumes the entire fee, it will still be recorded at the Land Registry Office as 2% for each party.

Valuation Reports

Since July 2024, official valuation reports are no longer mandatory for foreign buyers. However, there is still the option to voluntarily commission a valuation report to determine the exact worth and condition of the property. The cost of such a report is approximately 600 EUR and provides extra security when purchasing real estate.

Brokerage Fees

A common practice is to pay 2% of the purchase price plus 18% VAT for both buyer and seller. However, this fee is negotiable.

Value Added Tax (VAT)

For new constructions, it may be possible to obtain an exemption from VAT if the buyer does not have a residence in Turkey and pays in foreign currency. Otherwise, VAT is 8% for spaces up to 150 m² and 18% for larger spaces.

What ongoing costs does a property owner incur?

Property Tax

A yearly property tax of 1% of the assessed value is due; in major cities, this rate is 2%.

Waste Disposal Tax

This tax is based on water consumption (1.50 TL/m³ in major cities, otherwise 1.10 TL/m³).

Utilities

Additional contracts for electricity, water, and, if applicable, gas may be necessary. These costs are relatively minor.

Which costs arise when selling a property?

Land Registry and Brokerage Fees

As with the purchase, both parties each pay 2% of the purchase price plus 18% VAT.

Income Tax on Capital Gains (Speculation Tax)

If the property is sold within five years of acquisition, an income tax of 15–40% on the profit (capital gains) must be paid.

Retroactive VAT Payment

If the property was acquired without VAT and sold within three years, the originally exempt VAT plus interest must be repaid.

Which costs arise when gifting a property during one’s lifetime?

Land Registry Fees

The beneficiary must pay 6.831% of the property’s taxable value.

Gift Tax

Above an exemption amount of 53,339 TL (as of 2025), tiered tax rates ranging from 10–30% apply.
For gifts to parents, spouses, or children, these rates are halved.

Which costs arise in the event of inheritance?

Tax-Free Amounts for 2025

Spouse and descendants: 2,316,628 TL
Spouse without descendants: 4,636,103 TL

Inheritance Tax

For amounts exceeding the tax-free threshold, tiered rates between 1–10% apply.

Capital Gains Tax in Turkey

In order for the capital gains tax (speculation tax) to be paid in Turkey, all of the following conditions must be met:

The property is owned by one or more private individuals.
The property was not acquired free of charge (e.g., via inheritance or gift).
The property is sold (e.g., via a purchase contract) within five years of acquisition.
The difference between the selling price and the purchase price is more than 55,000 TL in 2023.

If any one of these conditions is not met, there is no capital gain, and no income tax has to be paid.

Acquiring and using a property in Turkey entails various costs and tax obligations. Early and careful planning helps to avoid financial and legal pitfalls.

If you need detailed advice or support with your real estate project, we are here to help.

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Koca & Ersöz Hukuk Bürosu / Anwaltskanzlei

Buying Property in Turkey: Legal and Tax Aspects – 2025

Which costs arise when acquiring a property?

What ongoing costs does a property owner incur?

Which costs arise when selling a property?

Which costs arise when gifting a property during one’s lifetime?

Which costs arise in the event of inheritance?

Establishing a Joint Stock Company in Turkey:Requirements

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