Property Tax in Turkey

Foreigners and Turkish citizens are equally liable to taxation according to the Turkish Tax law.

Turkish Property Transfer tax 4% is paid on the declared value of the property, when you sell the property.

Local Property Tax is payable in 2 equal installments, the first in May and the second in November (it could be paid at once). The tax rate varies according to the location and type of the property. Tax for the residences is 0,11% and tax for commercial premises is 0,22%, for the vacant land is 0,33%.

Income Tax is paid in the following cases:

  • Rental income tax;
  • Capital Gains Tax is a tax on profit earned in excess of purchase price paid by the seller. Tax is not charged for property ownership more than five years.

Progressive income tax system is applicable in Turkey. Tax free income on property is 3,000 TL (2014 official rates). Any profits above that level are taxable. The tax rates vary from 15% to 35%. Higher profits charged with higher tax rates.

Penalty for late payment is 1.4% per month.

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