Real Estate and Tourism in Turkey: Understanding Property Taxes

When considering buying property in Turkey, one of the main questions that arises is about the various taxes and fees associated with property ownership. These payments can be categorized into several sections:

1. Monthly Maintenance Fees (Aidat)

These are small payments ranging from 20 to 500 Turkish Lira, made to the management of the building or complex. These fees cover cleaning, lighting, and repairs of shared areas such as pools and playgrounds. These payments are required whether the property is occupied or not, and if the property is rented out, the tenant is responsible for paying the aidat, as they benefit directly from these services.

2. Annual Property Taxes

The Turkish government imposes annual property taxes, ranging from 0.1% to 0.2% of the property’s value, depending on the location. These taxes are paid biannually at local banks or the municipality office in the region where the property is located. These taxes apply to all property owners, whether the property is used as a residence or an investment.

3. Title Deed Transfer Tax

This is a one-time tax paid when transferring ownership of the property, typically 4% of the property’s value. In some cases, the developer may share the cost of this tax with the buyer. The payment is made when the ownership deed (Tapu) is transferred to the buyer's name.

4. Capital Gains Tax

This tax is levied if the property is sold within five years of purchase. The tax is calculated at 20% on the profit made from the sale. However, if the property is sold after five years, no capital gains tax is applied.

5. Value Added Tax (KDV)

The VAT rate for property in Turkey varies between 1% and 18%, depending on the location and the type of development. For example, properties in government-promoted urban development areas are subject to a 1% VAT rate. This tax is usually included in the purchase price of new properties and is paid by the developer when the property is sold for the first time.

While some buyers, especially international ones, might find the taxes associated with property ownership in Turkey to be a burden, these taxes are similar to those imposed in other countries. Investing in real estate in Turkey offers numerous benefits, particularly in a country where tourism in Turkey is continuously growing, making it a hot spot for both tourists and investors alike.