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Annual Property Tax Rate in Turkey

Annual Property Tax

Last Updated on August 29, 2023 by marie

The actual cost of real estate is not heavily taxed in Turkey, however, there are costs associated with the transfer phase of the transaction. The Yearly Property Tax is the sole tax related to real estate that must be paid annually in Turkey. The annual property tax varies depending on many factors.

You must provide the Turkish government with an extra yearly tax if you own property there. Turkey’s cities are divided into major and small ones, and the country’s real estate taxes vary according to the size of the city and the kind of property.

What is the Annual Property Tax Rate?

Residential properties in large cities will pay 0.2% of the value of the property, while those in small cities will pay 0.1%.

Large cities will charge commercial properties 0.4%, whereas small cities will charge 0.2%.

Large cities have a 0.6% land tax whereas small cities have a 0.3% land tax.

In large cities, farms and residential properties must pay 0.2% of their value in property taxes, but in smaller cities, the amount is fixed at 0.1%.

VAT Rate

In Turkey, a consumption tax known as VAT, or value-added tax, is applied to the cost of all products and services, including real estate. VAT is frequently paid by the buyer and is incorporated into the buying price of new houses. Just the transfer title deeds (TAPU) tax is due from the buyer of resale properties; VAT is not applicable.

Turkey now levies an 18% VAT on real estate. This implies that you have to pay an extra 180,000 TL in VAT if you buy property for 1,000,000 TL.


Nonetheless, there are several VAT exclusions and discounts available for Turkish real estate transactions. Properties that are regarded as principal homes, for instance, can be qualified for a lower VAT rate of 8%. Moreover, homes that are categorised as “social housing” or “affordable housing” may qualify for a 1% VAT discount.

The easiest and most common aspect of owning real estate is paying the annual property tax.

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