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Basic taxes in the Republic of Turkey

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If you plan to invest in real estate or move to Turkey for permanent residence, you need to know about all the taxes that you will have to pay. With this information, you can calculate your approximate budget in advance and protect yourself and your family from worries and troubles. 

If you have friends living in the Republic of Turkey, you can check for details about the tax system with them, as the general provisions are the same for everyone: residents and foreigners. We offer you consider the basic taxes on real estate and business. 

Income tax is one of the most important taxes.

It includes all labor income that individuals receive. According to the law, employees monthly pay deductible amounts, and entrepreneurs pay taxes in March, June, and September by dividing them into equal parts.

Income tax applies to the following sources: 

  • official work;
  • sale of agricultural products;
  • commercial activity;
  • rent;
  • securities

Here are the rates that depend on the salary level:

15% to 8,800 Turkish liras

20% to 22,000 Turkish liras

27% to 50,000 Turkish liras

35% over 50,000 Turkish liras

Let’s discuss property taxes: 

In Turkey, several taxes related to the purchase and sale of real estate, as well as its ownership, have been introduced. The most striking example is when obtaining an ownership certificate (TAPU), a tax of 4% of the declared value is charged. You can pay it at a state bank in Turkish liras. 

Everyone having real estate in Turkey is obliged to annually pay about 0.1 to 0.3% of the cadastral value of a square meter of developed area in the region. This also includes the minimum amount of land value. It is no more than 50-70 euros in total if you live in an apartment, and 100 euros, if you live in a large private house. You can make this deduction in local authorities in May and in November by dividing the amount into two parts. 

When renting any real estate and making a profit of more than 4200 Turkish liras per year, you need to deduct from 15% to 35% depending on the income amount.

When selling real estate, an additional tax is also paid. If you have owned a real estate for less than five years, you need to pay the difference between the cost of housing or premises indicated in the TAPU and the value at the time of sale. The tax is not charged, only if you have been the owner for more than five years.

In the end, we would like to draw your attention to the list of other local taxes that you may have to face: 

  • Value-added tax – VAT
  • Stamp duty in Turkey
  • Vehicle tax
  • Bank and insurance tax
  • Inheritance and gift tax
  • Communication tax
  • Temporary education tax
  • Customs duties on goods that are temporarily delivered or imported into Turkey
  • Special consumer tax
  • Other state fees and duties in Turkey

Relevant information is given in the “Official Gazette” of the Republic of Turkey. 

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