What is the Tax Exemption When Purchasing Property in Turkey? What are the Conditions?

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Tax exemption when purchasing property in Turkey is one of the special privileges granted to foreign property owners in Turkey. It was introduced by the Turkish government to continuously attract new investments to the country.

Under this exemption, investors are relieved from paying certain mandatory fees when selling or purchasing property, which reduces financial burdens, stimulates investment activities, and reflects Turkey’s commitment to providing a comfortable and attractive investment environment, contributing to sustainable economic development.

Explore the Turkish tax system and learn how to benefit from the available exemptions through Decorner Homes' article and prepare to discover details that will help you maximize your real estate investment.

 

What is Property Purchase Tax in Turkey?

Real estate taxes in Turkey are defined as the fees imposed by the government on all transactions involving the sale or purchase of property in Turkey. These taxes include costs related to property transfer as well as periodic fees paid by owners.

These taxes aim to regulate the real estate market and ensure a balance between the rights of investors and the state. Therefore, when considering real estate investment among the various investment types in Turkey, buyers must be aware of these financial obligations.

 

Types of Taxes Related to Turkish Real Estate

Every investor and property owner in Turkey must pay property taxes to the appropriate government authorities on designated dates. For foreigners purchasing property in Turkey, the applicable taxes include:

 

1- One-Time Property Taxes in Turkey

The property registration tax, also known as the title deed tax (Tapu), is set at 4% of the property's value as indicated in the title deed.

These fees are typically paid equally by both the buyer and the seller, unless a different agreement is reached, such as the buyer covering the full tax amount or the seller agreeing to pay it entirely.

 

2-Value-Added Tax (VAT)

This tax is paid once upon purchasing a property in Turkey and can reach up to 20%, depending on the property type, location, area, and other factors. Its value is calculated based on the property’s net area.

 

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3- Annual Property Taxes

The annual property tax rate is set at 0.2% of the value of residential properties in major cities and 0.1% for properties outside these cities. For commercial properties and offices, the rate is 0.4% in major cities and 0.2% outside.

Additionally, property owners must pay annual insurance fees against earthquakes and natural disasters, which are paid to government-approved insurance companies. These fees are determined based on specific criteria, such as the building's age, area, and other factors.

What Does the Tax Exemption When Purchasing Property in Turkey Include?

The tax exemption when purchasing property in Turkey is one of the most notable privileges granted to foreign real estate investors. Thanks to this exemption, foreign investors can save significant amounts when investing in the Turkish real estate market.

This exemption specifically includes VAT, which can exceed 10% and may rise to 20% for residential properties, offices, and commercial stores, depending on the property type.

 

Who is Eligible for the Tax Exemption in Turkey?

Foreign investors who do not reside in Turkey, foreign companies without offices in the country, as well as non-resident Turkish citizens, benefit from tax exemptions when purchasing property in Turkey.

The exemption also applies to individuals who own a single residence not exceeding 200 square meters, provided they do not own winter or summer houses or shares in other properties.

Specific groups are also eligible under Turkish law, provided they have a single residence, including housewives, widows, orphans, the disabled, relatives of veterans and martyrs, and retirees.

 

Conditions for Tax Exemption When Purchasing Property in Turkey

These procedures require accuracy and a focus on specific requirements, as any mistake or delay in their submission may result in losing the opportunity related exclusively to VAT exemption. It is worth noting that reclaiming any mistakenly paid taxes is a highly challenging and complex process.
Therefore, it is recommended that foreign investors seek the assistance of an experienced Turkish lawyer to apply for a tax exemption when purchasing property in Turkey, given the importance of these conditions, which include the following:

 

1-     The tax exemption for purchasing property in Turkey in 2025 is limited to non-resident foreign individuals and foreign companies without an established presence in the country.

2-     The applicant must have spent less than six months in Turkey during the past year.

3-     The applicant must not hold a valid residence permit in Turkey from the previous year.

4-     The applicant for the property tax exemption must not have a registered address in Turkey.

5-     The property tax exemption applies only to new properties.

6-     The tax exemption for purchasing property in Turkey is applicable only to residential apartments and commercial offices.

7-     The property investment value in Turkey must be paid in foreign currency through an external bank, with proof provided via a transfer invoice or cash payment at the airport accompanied by a customs document.

8-     The tax-exempt property cannot be resold within one year from the date of purchase.

 

Required Documents for Obtaining Tax Exemption

Foreign investors wishing to obtain tax exemption when purchasing property in Turkey must submit the following documents to the Turkish authorities:

• A certified and translated copy of the applicant’s passport.
• A certified document proving the applicant's residence in a country other than Turkey.
• A certificate of entry and exit from the General Directorate of Security.
• A document from the Immigration Office showing that the applicant has not resided for 6 months in the previous year.
• A copy of the property sales contract with the tax number.
• Proof of payment from an external bank with a receipt, or cash entry at the airport in USD or EUR with registration.

 

Decorner Homes Real Estate helps you obtain a tax exemption

Since obtaining a tax exemption when purchasing property in Turkey for foreigners requires precision and professionalism, partnering with a Turkish lawyer is an essential step to protect your rights — and this is where Decorner Homes comes in.

We provide you with a team of certified legal experts who can assist you throughout all stages of the purchasing process and property transfer, ensuring the correct application of the tax exemption.

By offering a high level of professional services, we aim to build a trust-based partnership with our clients, ensuring that no legal errors occur that could impact their investment.

Get ready for a unique advisory experience and contact us via WhatsApp today.

Edited by: Decorner Homes^©
Source: Turkish Tax Authority