What taxes are levied when buying real estate in Turkey?
Foreigners buying property in Turkey should be fully aware of their tax obligations. This article explains which taxes and additional costs you can expect and how to best prepare. Understanding the taxes associated with buying property in Turkey allows you to invest with confidence. Furthermore, many costs can be calculated in advance.
1. Real estate transfer tax when buying property in Türkiye
This tax is paid upon transfer of ownership and amounts to a total of 4 1/3 of the officially stated purchase price. In practice, it is often split equally between the buyer and seller, but it is also common for the buyer to bear it alone. Overall, this creates additional costs that are often not factored in in advance.
2. Property tax in Turkey
The annual property tax ranges from 0.1 to 0.6 percent of the property value, depending on the location (e.g., city or village). In cities like Alanya, the rate for apartments is 0.2 percent of the official cadastral value.
3. Value Added Tax (KDV)
When purchasing a newly constructed building for the first time, VAT is charged at 1, 10, or 20 units per annum, depending on the living space, building permit, and project. VAT is generally not charged on resales by private individuals.
4. Notary and translation costs
Foreign nationals require certified translations of their passports and other documents. Notary fees vary by region, but are typically between €100 and €200. Translation costs should also be factored in.
5. Tapu fees and land registry entry
Registration incurs a small administrative fee of approximately 1,000–1,500 TL. Registration takes place at the Tapu office with the assistance of a lawyer or real estate agent. Therefore, it's advisable to secure an appointment well in advance.
6. Brokerage commission in Turkey
The usual commission in Turkey is 3% of the purchase price (plus VAT). This commission may be waived if the property is sold directly by the developer. However, it is recommended to clarify the commission in writing beforehand.
7. Other possible costs when buying property in Türkiye Tax
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ISKAN fee (usage permit): approx. 1,000–2,000 TL one-time fee
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Insurance (DASK earthquake insurance): required by law
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Connection fees for water, electricity, internet: variable
8. Running costs after the purchase
The calculation does not end with the tapu. Also plan for the costs that arise from actually using the property:
- Aidat (service charge): Complexes with a pool, lift, security service or caretaker charge monthly service fees. Their amount depends heavily on the features, location and concept of the complex.
- Electricity, water, internet: Depending on the provider, fees, deposits or connection costs may arise when registering or transferring contracts.
- Municipal charges: In addition to property tax, further municipal charges may be levied, for example for cleaning services.
- Rental income: If you rent out, income tax may be due on the rental income actually earned. Short-term tourist rentals are also subject to permit and registration requirements.
9. Later sale and country of residence
A possible tax on a later capital gain is not part of the purchase costs, but should be factored into long-term planning. Selling after a short holding period can trigger tax consequences, depending on the situation. Buyers with tax residence outside Turkey should also check which obligations apply in their country of residence. Double taxation agreements may play a role here.
Conclusion: Calculate property purchase tax correctly in Türkiye
When purchasing property in Turkey, foreigners should consider not only the purchase price but also all additional costs and taxes. If you are well-informed and seek professional support, you won't experience any unpleasant surprises. Last but not least, this will save you a lot of time and stress. Tip: Always ask to see the current cadastral values and tax obligations before signing a contract.
Already have a property in mind? You can find our current listings under Buy a villa in Alanya and Buy an apartment in Alanya – we are happy to explain the costs of each property in detail.
👉 Further information: Buying property in Turkey – Why Alanya is a top choice
👉 External link: Invest in Turkey – Official Information for Investors
A notice: The information provided is for general information purposes only and does not replace individual legal or tax advice.
Our guide explains the entire process from the initial consultation to the Tapu appointment. Property Purchase Turkey.
