Turkish Real Estate and Taxes. How much should foreigners pay

Turkish Real Estate and Taxes

Almost any non-resident can purchase a Turkish house. Both locals and foreigners pay most property taxes in Turkey the same way. The source https://turk.estate/en/ will tell you more about the features of taxation.

Rights and obligations of non-resident owners in Turkey

Real estate for sale in Turkey is available to citizens of 129 countries. Foreigners have a list of property rights available to Turks. However, there are exceptions:

  • The area of land plot acquired by the owner should be no more than 30 hectares;
  • It is not allowed to buy real estate in the border area, including on the Black Sea coast in places: Zonguldak, Samsun, and Trabzon. You can buy any property in the central cities of Turkey and on the coasts of the Mediterranean and Aegean Seas.

Important! Investors in real estate for $250 thousand and more can apply for Turkish citizenship.

Owners of apartments and houses pay an annual tax to the treasury. Owners of luxury real estate worth more than $620 thousand must pay an additional tax.

Home purchase tax

The property registration tax is paid after the transaction and is equal to 4% of the cost of the housing. There is no difference in the amount of payment for residents and foreigners. Taxes apply equally to both the buyer and the seller. It is the buyer who pays it, regardless of his nationality. 

Important! Non-residents will need to pay an additional working capital of $133 (Döner Sermaye). For locals, the amount is lower – $46.

Taxes on property ownership

The tax amount depends on the housing type and the location. Below are the property taxes (emlak vergisi) to be paid in Turkey.

  • Housing – in the province 0.1%, in large cities 0.2%;
  • Commercial real estate – in the province 0.2%, in large cities 0.4%;
  • Land plot without construction permit – in the province 0.1%, in large cities 0.2%;
  • Land plot with a construction permit – in the province 0.3%, in large cities 0.6%.

The tax amount is associated with the cadastral value of the property that is registered in TAPU. Usually, the cadastral value is lower than the one paid at purchase time, so the tax is not large – from $120 to $150 per year.

Premium real estate tax

The government introduced a premium property tax in 2019. This initiative concerns residential units worth more than $620,270 (5.25 million liras). When calculating the tax, they proceed from the housing cost.

Assistance in buying real estate in Turkey

In the Turk.Estate catalog, you can find more Turkish housing options from developers and approved owners. You can ask managers about how you can buy real estate in Turkey.