The sunny country attracts foreign investors with its climate, strategic location, and stable economy. However, buying, owning, and selling real estate involve tax obligations that cannot be ignored. Property taxes in Turkey in 2025 have undergone some changes. Understanding all the nuances will help minimize expenses and avoid unpleasant surprises.
In this article, we will discuss current fees related to the purchase, ownership, and sale of property, as well as key points for investors.
Taxation: how much to pay and how to optimize expenses
Real estate investments in Turkey in 2025 remain relevant, but before making a deal, it is important to understand the tax burden. Property taxes include several mandatory payments:
- purchase fee;
- annual property tax;
- income from rent;
- luxury tax for expensive properties.
For investors, these are not just additional expenses but an important part of financial planning. Errors in calculations can lead to significant losses.
Changes in Turkey’s tax system aim to provide more transparent regulation of the real estate market. In 2025, new mechanisms for assessing cadastral value are expected, which may affect tax rates. The government is implementing additional measures to combat tax evasion, especially for those considering renting out property or buying real estate for resale.
To avoid overpayments and disputes with tax authorities, it is necessary to thoroughly understand the tax system.
What tax to pay when buying property
Buying real estate in Turkey involves a mandatory payment of a purchase tax, which is 4% of the cadastral value of the property. The fee is paid by the buyer, and in some cases, the parties may agree to split the expenses.
It is important to understand that the cadastral value of the property stated in the contract may differ from the actual market value. Turkish legislation prohibits understating this amount as a way to evade taxes. In 2025, there are plans to strengthen control over transactions and review the mechanism for evaluating real estate, which may increase the tax burden.
There are several ways to legally optimize expenses when buying:
- participation in tax exemption programs for foreigners;
- buying property from a developer with installment options, where the tax is paid gradually;
- registering ownership under a company if commercial use of the property is planned.
In 2025, property taxes when buying in Turkey depend on the region, type of property, and its cadastral value. Therefore, it is recommended to consult with a tax specialist before making a deal.
Taxes paid when selling property in Turkey
When selling property in Turkey, a capital gains tax is levied. The fee is calculated based on the difference between the purchase and sale prices. In 2025, the rate ranges from 15% to 35%, depending on the seller’s income.
An important rule: if the property has been owned for more than five years, no capital gains tax is levied, making long-term investments more profitable. It should be noted that the new mechanism for assessing cadastral value may increase the amount payable upon sale.
Property taxes in Turkey in 2025 require careful calculation, especially when it comes to speculative investments. Optimizing tax collection can be done by providing documentary evidence of all expenses on property repairs and improvements, as they are taken into account when calculating capital gains.
Ownership taxation: how much to pay annually
Property owners in Turkey are required to pay an annual municipal property tax. In 2025, its rates remain unchanged and are:
- 0.1–0.2% for residential properties;
- 0.2–0.4% for commercial properties;
- up to 0.6% for luxury housing in major cities.
The fee is paid in two installments — in spring and autumn. Non-payers face penalty sanctions, increasing the amount of debt.
Property owners are required to pay fees for municipal services, such as waste disposal and infrastructure maintenance. Costs vary depending on the region.
Property taxes in Turkey in 2025 also include earthquake insurance (DASK), which is mandatory for all property owners.
Avoiding double taxation
Investors owning property in Turkey often face the issue of double taxation. The country has signed agreements with more than 80 states allowing for the consideration of paid fees and avoiding double taxation.
To benefit from this, it is necessary to provide the tax authorities of the country of residence with documents confirming payment in Turkey. This is important for tax collection on rent and capital gains.
Property taxes in Turkey in 2025 require a knowledgeable approach to tax planning, especially for buyers from other countries.
Turkish Citizenship through Investments
The “Turkish Citizenship for Real Estate” program requires investments starting from $400,000, but in addition to the property cost, buyers must consider tax obligations.
Main expenses:
- for purchase — 4%;
- municipal property tax;
- possible rent payment if the property will be rented out.
Property taxes in Turkey in 2025 become a significant factor in investment planning for obtaining citizenship.
Property Taxes in Turkey: Conclusions
Investors who have studied all aspects of taxation confidently plan expenses and reduce payments to the budget. In 2025, Turkey offers various fees for buying and owning real estate; optimize them with the right approach. Learn about all possible fees and legislative changes before purchasing property. Thoughtful fee planning will save you from unnecessary expenses and make investments profitable. Turkey remains an attractive real estate market, but success depends on your awareness and approach to budget payments.
