Turkey is considered one of the most attractive real estate investment destinations in the region, thanks to its reasonable tax system that encourages foreign investors. Property taxes in Turkey are imposed on both citizens and international investors, making it a transparent and stimulating investment environment. In this article, we will review the types of property taxes in Turkey, how to pay them, and important tips for investors.
Types of Property Taxes in Turkey
Property taxes in Turkey vary depending on the type of property and its intended use. These taxes include monthly and annual payments, as well as one-time taxes. Below is a detailed overview of the main types of property taxes:
Monthly Property Taxes in Turkey
Monthly taxes in Turkey are known as "dues," which are fees paid for daily services in residential complexes, such as cleaning, maintenance, and elevator services. The amount of these fees varies based on the size of the property and the level of luxury in the complex.
- Independent properties: Fees are lower compared to luxury residential complexes.
- Residential complexes: Fees vary based on the services provided, such as swimming pools and gyms.
Annual Property Taxes in Turkey
Annual taxes include several types, the most notable of which are:
1. Property Ownership Tax
This tax is paid annually based on the declared value of the property, ranging from 1 to 6 per thousand of the property's value. On average, this tax is about 100 USD per year. The tax remains mandatory for foreign owners.
2. Earthquake and Disaster Insurance on the Property
This tax is imposed annually and covers insurance against natural disasters such as earthquakes.
- Mandatory type: Applies to all properties.
- Optional type: Covers the contents of the property, such as furniture and electrical appliances.
One-Time Property Taxes in Turkey
1. Service Meter Opening Fees for the Property
These fees are paid when opening electricity, water, and gas meters for the first time.
- Transfer of services: Services can be transferred to the tenant's name in the case of renting the property.
- Additional cost: If services remain in the owner's name, rental prices and insurance values may increase.
2. Property Registration Tax
This tax is paid when registering the title deed at the land registry office and is equivalent to 4% of the property's value.
- Distribution: The seller and buyer share the tax equally, but it is customary for the buyer to bear the larger portion.
- Inheritance Tax: Imposed when transferring property ownership from the deceased to the heirs.
3. Capital Gains Tax in Turkey
This tax is imposed when selling the property before five years have passed since its purchase and is calculated based on the difference between the purchase price and the selling price.
- Tax rate: Ranges from 15% to 35% depending on the size of the profits.
- Exemptions: No capital gains tax is imposed if five years have passed since the property was purchased.
How to Pay Property Taxes in Turkey?
Investors are advised to open a bank account in Turkey to pay taxes and regular fees. It is also recommended to consult a reliable real estate advisor to facilitate the payment process and avoid delays, which could lead to penalties.
In conclusion: Tips for Investors
Turkey is an attractive investment environment due to its reasonable and transparent tax system. However, foreign investors should:
- Familiarize themselves with all property taxes and adhere to payment deadlines.
- Consult a real estate advisor to ensure compliance with all legal obligations.
- Open a Turkish bank account to facilitate payment processes.
For more information about property taxes in Turkey, contact MBANY Real Estate Company, where we provide specialized consultations to help you manage your real estate investments with ease.
08-02-2024 
