Property taxes in Turkey
Turkish tax legislation is the same for foreigners and citizens of the country
One-time sales tax paid when buying a home or land is 4% of the declared (not market) value. VAT is not charged on the purchase of real estate.
Annual property tax is paid twice a year, in May and November (can be paid in a single payment). The tax rate depends on the type of property and location. Residential property tax is 0.11% – 0.22%, commercial property 0.22%, land 0.33%.
The following real estate transactions are subject to income tax:
*When renting out
*Upon resale within 5 years (tax is imposed on the difference between the sale and purchase price).
Turkey has a progressive income tax rate and each year a tax-exempt income limit is regulated.
Resale: The first 11,000 TL (Turkish Lira) resale for five years is tax deductible. Subsequent amounts of income are subject to taxation. Income in excess of this amount is taxed based on monthly indices. The tax committee website has an automatic calculator that calculates the amount of tax payable.
When renting: no tax is levied on rental income equal to 7,000 TL (Turkish Lira) per year. Tax rates vary from 10-20% and depend on the amount of income: the higher it is, the higher the rate.
The penalty for unpaid tax is 1.4% for each overdue month.