4 Annual Property Taxes in Turkey | Don’t Neglect Paying Them

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Annual property taxes in Turkey are not just financial obligations; they are part of the bigger picture of owning property in this beautiful country.

Whether you own a small apartment or a luxurious villa, complying with property taxes like property tax and environmental cleaning tax allows you to better plan and manage your expenses.

Moreover, these taxes vary depending on the property’s location and value, making it essential to know them to avoid any unwanted surprises and ensure a smooth real estate investment experience.

Follow this article from DeCorner Homes to learn more about annual property taxes in Turkey 2025 and the cost of each.

 

What are Annual Property Taxes in Turkey?

Annual property taxes in Turkey are a key part of property owners’ obligations, serving as one of the main sources of funding for public services and infrastructure.

These taxes are not unnecessary financial burdens but play a vital role in improving the urban environment and ensuring the quality of services provided to the community.

Understanding these taxes helps you plan your finances better and ensures compliance with local laws, making your real estate investment a smooth and secure experience.

 

1- Property Tax in Turkey

Annual property tax is one of the obligations imposed by the Turkish government on all real estate properties, whether owned by Turkish citizens or foreigners.

The tax aims to boost state revenue and encourage optimal use of real estate. The tax amount is determined based on the value registered in the title deed and is paid annually, contributing to the effective regulation of the real estate sector.

The annual property tax rate is 2 per thousand of the property's value in major cities, while it drops to 1 per thousand in smaller cities. This variation accounts for differences in property values influenced by city size, location, and individual income levels.

 

Property Tax Payment Schedule

In Turkey, annual property tax is paid in two installments: the first between March and May, and the second in November. Alternatively, you can opt to pay the full amount in a single payment.

 

Exemption from Property Tax

In 2006, the Turkish government granted a special exemption for retirees, war veterans, martyrs’ children and spouses, and citizens with no monthly income, provided they own only one residence not exceeding 200 square meters.

The exemption also covers unregulated lands, agricultural lands in mountainous areas, and public facilities like roads, fruit refrigerators, baths, and mills.

 

2- Capital Gains Tax on Real Estate

This is a property tax imposed on properties sold within a period not exceeding five years from the date of purchase. It is considered a capital gains tax, assuming that the property purchase is for investment purposes.

The tax is calculated based on the difference between the purchase price and the sale price, according to Article 80 of the Income Tax Law in Turkey.

 

Exemption from Capital Gains Tax

Exemption from this type of annual property tax in Turkey applies in the following cases:

1. Selling the property after more than five years from the purchase date.
2. Acquiring the property through inheritance.
3. Acquiring the property through donation.
4. If the profit difference is less than 18,000 Turkish Lira.

 

3- Earthquake and Natural Disaster Insurance

DASK insurance, Turkey's mandatory earthquake insurance policy, is an essential safeguard for properties against earthquake and disaster damages.

Paid directly to the DASK institution, this insurance helps cover repair costs after disasters, easing the financial burden on property owners. It also promotes awareness of building earthquake-resistant structures and highlights the importance of earthquake insurance.

The cost of DASK insurance depends on factors such as the property’s location, construction year, and size, typically not exceeding 50 USD per year per property.

 

4- Municipal Property Tax

The municipal property tax is one of the annual property taxes in Turkey, set at 0.002% of the property's registered value in the title deed.
It is paid in two phases throughout the year: the first in March and the second in October. Payments can be made directly at the municipality building or through bank transfer.

These funds are directed towards improving infrastructure, such as street lighting, maintenance, and public facilities management.

 

Are those who evade paying annual property taxes in Turkey penalized?

Yes, those who evade paying annual property taxes in Turkey are subject to penalties imposed by the government. If the tax is not paid on time, the municipality imposes late fees that accumulate over time.

These fines are usually calculated as a percentage of the unpaid tax amount and increase with continued delay. Additionally, authorities may take legal action, such as seizing the property or freezing sales and rental transactions until the overdue payments are settled.

Therefore, it is essential to pay taxes on time to avoid these penalties and ensure continued access to municipal services and public facilities.

 

Conclusion

Annual property taxes in Turkey are an important aspect that every property owner should be aware of to ensure compliance with local laws and avoid any fines or legal issues.

This is where DeCorner Homes comes in, providing full support to its clients. After helping you find the perfect property, we can manage it, including accurately determining the taxes due.

So, do not hesitate to request a free consultation from our specialized team or contact us via WhatsApp for more information and assistance with your property. We are here to help you at every step!

Edited by: DeCorner Homes^©

Sources:

Tax Directorate in Turkey

Official Gazette of Turkey

PwC Turkey