Property Taxes and Costs in Turkey 2026: The Complete Breakdown

The listed price is not the full amount you will spend on property in Turkey, nor the last payment after the deal. On top of the price come taxes at purchase, annual ownership taxes, rental income tax, and capital gains tax on sale. The good news: overall, Turkey’s tax burden remains among the lowest of the countries popular with international investors, and long holding removes capital gains from tax entirely.

This breakdown covers all property taxes and costs in Turkey in 2026: what you pay once at purchase, what each year, what on income, and what on sale, with rates, a worked example, and legal ways to save.

Listings with prices are in our property in Turkey catalogue.

In Short: Four Cost Groups

All property payments fall into four groups:

1. One-time at purchase — title-transfer tax, fees, appraisal, insurance, and VAT on new-builds. Total 4 to 7% over the price.
2. Annual ownership — property tax and DASK insurance.
3. On income — rental income tax.
4. On sale — capital gains tax (zero after 5 years of ownership).

One-Time Costs at Purchase

These are paid once at closing. The process itself is in our step-by-step buying guide; here is the money.

On resale, budget 4 to 7% of the price. The largest item is the transfer tax, and in 2026 the assessed-value rule matters most for it (see below).

VAT: When You Pay and When You Don’t

VAT (KDV in Turkish) only arises when buying from a developer; there is no VAT between private individuals on the resale market. The rate depends on type and size: for housing it can be 1%, 10%, or 20%, and for commercial property the standard 20%.

Foreign buyers get an important break: on the first sale by a developer, a VAT exemption is available if conditions are met: you are not a Turkish tax resident, funds are brought from abroad in foreign currency (proven by the DAB certificate), and the property is not sold for a set period. This can save up to a fifth of a new-build’s price, so factor it in early.

How Tax Is Calculated: rayiç bedeli and the 2026 Change

The transfer tax and the annual tax are calculated not on the market price but on the official assessed value (rayiç bedeli) set by the municipality. For a long time this value was well below market, which kept taxes low.

In 2026 this changed: from January, the base assessed value rose several-fold in some regions, in places up to threefold. So even at the same transaction price, the transfer tax in absolute terms can be higher than a year earlier. Confirm the current rayiç bedeli at the municipality before budgeting: the value declared on the tapu cannot be lower than it.

Annual Ownership Taxes

• Property tax (emlak vergisi): for housing roughly 0.1% of the assessed value per year, doubling to 0.2% in major metropolitan cities (Istanbul, Ankara, Izmir and other metropolitan municipalities). Commercial 0.2–0.4%, land 0.3–0.6%. Paid in two installments. Since the assessed value is usually below market, the absolute figure is small.
• DASK insurance: mandatory earthquake insurance, renewed annually (from $50). Without a valid policy you cannot keep utilities connected.

Rental Income Tax

Rental income is taxed on the progressive income-tax scale: 15% to 40% depending on the amount. Key rules:

• Residential rent has a tax-free allowance (around 47,000 TRY a year), indexed annually.
• Expenses can be claimed two ways: actual documented costs, or a fixed lump-sum deduction of the income.
• The return is filed once a year, usually in March for the prior year.

If you rent out, choose your expense method in advance: for many owners the lump-sum deduction is simpler and more favourable.

Example. You rent an apartment in Alanya for €1,000 a month, about €12,000 a year. After the allowance and deductible expenses, the taxable base drops noticeably, and the effective rate for most landlords stays modest.

Capital Gains Tax on Sale

The key investor-friendly rule: if you sell more than 5 years after tapu registration, the capital gain is not taxed at all. Sell within 5 years and the profit (the difference between purchase and sale, adjusted for official inflation) is taxed at 15–40%. This is a direct incentive to hold long and makes Turkey attractive for long-term ownership.

Example. You buy for $150,000 and sell six years later for $230,000. The $80,000 gain is untaxed because you held the property longer than 5 years. Sell after 3 years and the tax would apply.

Inheritance and Gift Tax

Inheritance and gift tax in Turkey is progressive: 1% to 30% depending on value and relationship, with reliefs for close relatives and the option to pay over several years. Separately, the 2026 tax regime introduces a preferential 1% inheritance and gift rate for participants (see below).

Example: Cost of Owning a $200,000 Apartment

Approximate figures for a $200,000 resale apartment:

• At purchase (one-time): transfer tax ~$8,000 + fees, appraisal, translator, DASK ~$1,200 = about $9,000–10,000 (roughly 5% over price).
• Annually: property tax $200 ($400 in a metropolis) + DASK ~$50–150 = about $250–550 a year.
• On rent (say $12,000 a year): taxed on the progressive scale after the allowance and expenses.
• On sale after 5 years of ownership: capital gains tax $0.

Even with everything included, the overall burden stays moderate, and long holding removes the capital gain from tax almost entirely.

How to Reduce Tax Legally

• Hold 5+ years so the capital gain on sale is untaxed.
• Route funds through a bank with a DAB to unlock the new-build VAT exemption and other reliefs.
• Pick the better rental expense method — the lump-sum deduction often lowers the base more than actual costs.
• Plan family transfers — under the new regime the inheritance and gift rate for participants is just 1%.
• Check the rayiç bedeli so you don’t overpay on an inflated declared value.

The 2026 Tax Connection

Everything above concerns income and assets inside Turkey. Separately, from 2026 a regime exempts the foreign income of new tax residents from Turkish income tax for up to 20 years, plus a 1% inheritance and gift rate for participants. Important: income from Turkish property (rent, capital gains) is not covered and is taxed normally. Detail in our article on Turkey’s 2026 tax reform.

FAQ

How much do I pay in total when buying property in Turkey?

Budget 4 to 7% over the price: mainly the 4% transfer tax, plus the land-registry fee, SPK appraisal, translator, DASK, and optionally a lawyer. VAT may apply on a new-build unless exempt.

What is the annual property tax in Turkey?

For housing roughly 0.1% of the assessed value a year, 0.2% in major metros. On a $200,000 property that’s about $200–400.

Do I pay tax when I sell?

Only if you sell within 5 years of tapu registration: the gain is then taxed at 15–40%. After 5 years of ownership the capital gain is untaxed.

Is rental income taxed?

Yes, on a progressive 15–40% scale with a tax-free allowance for residential rent (around 47,000 TRY a year) and deductible expenses.

Do foreigners pay VAT on purchase?

Only when buying from a developer. On a first sale, with funds brought from abroad and conditions met, a foreigner can get a VAT exemption.

Is there a separate property tax for foreigners?

No. Foreigners pay the same rates as citizens. There is no extra “foreigner tax.”

Ready to Estimate Costs on a Specific Property?

Virto Property helps you calculate the full cost of buying and owning a chosen property: taxes, fees, insurance, and annual payments. We match the option to your objective, whether living, rental, or investment.

→ Browse property in Turkey → Message us on WhatsApp

This article is for informational purposes and does not constitute tax or legal advice. Rates and assessed values can change: confirm current data before transacting.

Last updated: June 2026