Anyone who owns a property (apartment, house, villa or land) in Turkey is liable to taxation according to the Turkish Tax law. Property tax is calculated yearly and it can be paid in two equal instalments per year during March and November to the local municipality.
It can also be paid in one instalment. If the tax is not paid on time, the owner of the property will be liable to pay a fine on top of the due tax. Retired Turkish citizens are exempt from property taxes if they own only one property and this is their permanent, private residence. Also, the relatives of soldiers and disabled persons are exempt in the event that conditions are met for this purpose.
1. How much Property Tax is payable in Turkey?
The tax rate varies according to the location, qualification and the size of the property. The base for this tax is the property's notional value (nominal değer), not its sale price. The tax rate is applied as follows:
- land in general: 0.1%
- buildings: 0.2%
- building sites or vacant land allocated for construction purposes: 0.3%
If the property tax debts are not fully paid, the land registry office will not allow the transfer of the property to any third parties, as a valuation report is required from the municipality in order for the transaction to proceed at the land registry office.
This report is delivered only where the property is clear of any due property taxes. It is also advised to notify the relevant municipality 15 days in advance of the property transaction.
If you are the seller, it is highly recommended to apply to the municipality with the copy of the new deed and the new owner’s details in order to remove any further obligation to pay property tax. Once the municipality registers the new owner, you will be no longer be responsible for the taxes relating to the property from the date of the sale of the property.
