Buying or selling real estate in Türkiye involves more than agreeing on the property’s purchase price. Taxes, title deed fees, VAT, professional expenses, and potential income tax liabilities can significantly affect the total cost of a transaction.

For both Turkish citizens and international investors, understanding these expenses before signing a property purchase agreement is an important part of financial planning.

This guide explains the main taxes and costs that buyers and sellers should consider when completing a real estate transaction in Türkiye.

1. Title Deed Transfer Fee

One of the main expenses associated with a property sale in Türkiye is the title deed transfer fee, commonly referred to as the Tapu Harcı.

Under the general rule, the title deed fee is calculated at 2% for the buyer and 2% for the seller, based on the declared sale value, provided that this amount is not lower than the property’s applicable real estate tax value.

This results in a combined title deed fee of 4% of the declared value when both parties’ statutory shares are considered.

Example

Suppose an apartment is sold for:

Property Sale Price: TRY 10,000,000

The calculation would generally be:

Buyer’s Title Deed Fee:
TRY 10,000,000 × 2% = TRY 200,000

Seller’s Title Deed Fee:
TRY 10,000,000 × 2% = TRY 200,000

Total Title Deed Fees:
TRY 400,000

Although buyers and sellers may commercially agree on who will ultimately bear certain transaction expenses, both parties should understand their legal obligations before completing the transfer.

2. Why Is the Declared Property Value Important?

The value declared during the title deed transaction is extremely important because the title deed fee is calculated using this amount.

The declared sale price cannot simply be reduced to an arbitrary figure to lower transaction costs. The value used for the transaction must comply with the applicable minimum property tax valuation requirements.

Incorrect or artificially low declarations can potentially result in additional tax assessments, penalties, and interest.

Buyers and sellers should therefore ensure that the financial information submitted during the transaction accurately reflects the applicable legal requirements.

3. VAT on Property Purchases

Value Added Tax, or VAT (KDV), is another important consideration when purchasing real estate in Türkiye.

However, VAT does not apply to every property transaction in exactly the same way.

Whether VAT applies—and the applicable rate—can depend on several factors, including:

• Whether the seller is an individual or a commercial business
• Whether the property is new or previously owned
• The property’s characteristics and intended use
• The nature of the transaction
• Whether a specific VAT exemption applies

For example, purchasing a newly constructed apartment directly from a developer may have different VAT consequences from purchasing a second-hand apartment from a private individual.

For this reason, buyers should confirm the VAT treatment of a property before calculating their total investment budget.

4. VAT Exemptions for Certain Foreign Buyers

Certain foreign nationals and qualifying Turkish citizens living abroad may be eligible for VAT exemptions on qualifying real estate purchases when the legal requirements are satisfied.

Such exemptions are subject to specific conditions concerning matters such as the buyer, the property, the source and transfer of funds, and the period during which the property must be retained.

A buyer should never assume that VAT exemption automatically applies simply because they are a foreign national.

Eligibility should be confirmed before completing the purchase.

5. Capital Gains Tax When Selling Property

Taxes can also arise when a property is sold.

For individuals, gains arising from the sale of certain properties acquired for consideration and sold within five years of acquisition may be treated as taxable capital gains under Turkish income tax rules.

The calculation is not necessarily based simply on:

Sale Price − Original Purchase Price

Depending on the circumstances, the acquisition cost may be adjusted according to the applicable producer price index rules. Eligible expenses, taxes, and fees may also affect the calculation.

After the applicable deductions and exemptions are considered, the remaining taxable amount may be subject to income tax.

6. The Five-Year Rule

The five-year ownership period is particularly important for individual property investors.

If an individual acquires a qualifying property for consideration and sells it within five years, a taxable capital gain may arise.

For 2026, the official exemption amount applicable to qualifying capital gains from property disposals is TRY 150,000.

If the property is sold after the relevant five-year period has expired, the gain generally falls outside this particular capital gains taxation rule for individuals.

However, different rules may apply where property trading constitutes a commercial activity.

7. Inherited and Gifted Properties

Properties acquired without consideration, such as through inheritance or certain gifts, can be treated differently for capital gains purposes.

Therefore, the tax consequences of selling an inherited property may differ significantly from those of selling a property that was originally purchased.

The method of acquisition should always be considered before calculating potential tax liability.

8. Commercial Property Trading

The five-year rule should not be interpreted as a universal tax exemption for everyone selling real estate.

If a person regularly purchases and sells properties in a manner that constitutes an ongoing commercial activity, the resulting income may be classified as commercial income rather than an individual capital gain.

This distinction can substantially change the applicable tax treatment.

Professional investors, developers, and individuals conducting frequent real estate transactions should therefore obtain professional tax advice.

9. Annual Property Tax

Property owners in Türkiye may also have ongoing annual property tax obligations.

The amount depends on factors such as:

• Property type
• Official taxable value
• Municipality
• Location
• Applicable statutory rates

Properties located within metropolitan municipality boundaries may be subject to different effective rates under the applicable property tax framework.

This is an ongoing ownership cost and should be considered separately from the one-time costs paid when purchasing the property.

10. Compulsory Earthquake Insurance

For applicable buildings, DASK compulsory earthquake insurance is another important part of property ownership and title deed procedures in Türkiye.

Although DASK is technically an insurance expense rather than a tax, buyers should include it when calculating the total costs associated with purchasing and owning a property.

Optional home and contents insurance may create additional expenses.

11. Land Registry Service Charges

In addition to the title deed fee, transactions may involve a revolving fund/service charge collected in connection with land registry services.

The amount should be checked for the specific transaction because applicable tariffs can change.

This cost is separate from the percentage-based title deed transfer fee.

12. Real Estate Agency Commission

When a real estate agency is involved in the transaction, buyers and sellers should also consider agency commission.

The amount payable should be clearly stated in the brokerage or service agreement.

VAT may also apply to professional service charges.

Before working with an agency, both parties should clarify:

• Commission percentage
• Which party pays the commission
• Whether VAT is included
• When payment becomes due
• What services are included

This prevents unexpected costs at the final stage of the transaction.

13. Legal, Translation and Notary Expenses

International buyers may face additional expenses that domestic buyers do not always encounter.

These can include:

• Lawyer fees
• Sworn translator fees
• Notary fees
• Passport translations
• Apostille or legalization expenses
• Power of attorney costs
• Document preparation expenses

The exact amount varies according to the buyer’s nationality, documentation, transaction structure, and professional services required.

14. Property Valuation Costs

An official valuation report may be required for certain property transactions, particularly in situations involving foreign buyers or investment-related procedures.

Where required, the valuation cost should be included in the acquisition budget.

The valuation process can also help buyers better understand whether the agreed purchase price is reasonable in relation to the property’s characteristics and market conditions.

15. Banking and Currency Conversion Costs

International property buyers should also consider financial transaction expenses.

Purchasing property in Türkiye may involve:

• International bank transfer fees
• Foreign exchange conversion costs
• Bank commissions
• Payment documentation
• Currency fluctuations between agreement and completion

For high-value property transactions, even a relatively small difference in exchange rates can have a significant financial impact.

International buyers should therefore plan how and when funds will be transferred.

16. Example of the Total Cost of Buying Property

Consider a simplified example of an apartment purchased for TRY 10,000,000.

The buyer may need to budget for the purchase price plus the buyer’s statutory title deed fee, land registry service charges, professional fees, insurance, valuation costs where applicable, agency commission where applicable, and VAT if the particular transaction is subject to VAT.

Therefore, a property advertised for TRY 10 million does not necessarily mean that the buyer’s final investment cost will be exactly TRY 10 million.

A complete acquisition budget should always be prepared before signing the contract.

17. Costs Sellers Should Consider

Sellers also need to calculate their potential expenses before determining their expected net proceeds.

These may include:

• Seller’s title deed fee
• Real estate agency commission
• Potential capital gains tax
• Legal or professional fees
• Outstanding property-related liabilities
• Other contractual expenses

A seller who focuses only on the agreed sale price may therefore overestimate the amount they will ultimately receive from the transaction.

18. Why Tax Planning Matters in Real Estate Transactions

Real estate transactions often involve substantial amounts of money.

Even relatively small percentage differences in taxes and fees can represent significant amounts on high-value properties in Istanbul and other major Turkish markets.

Understanding these expenses in advance allows buyers to establish a realistic acquisition budget and enables sellers to calculate their expected net proceeds more accurately.

This is particularly important for international investors who must also account for exchange rates, international banking costs, taxation in their country of residence, and potential double-taxation considerations.

Buying or Selling Property in Türkiye

A successful property transaction should be evaluated according to its total financial cost, not simply the advertised sale price.

Before purchasing or selling real estate in Türkiye, buyers and sellers should understand the applicable title deed fees, VAT treatment, capital gains rules, annual property taxes, insurance costs, agency commissions, and professional expenses.

Because taxation can vary according to the property, seller, buyer, transaction structure, and date of sale, obtaining professional legal and tax advice before completing a high-value transaction can help prevent unexpected costs.

For international investors in particular, careful tax and cost planning is an essential part of making an informed real estate investment in Türkiye.

Disclaimer: This article is provided for general informational purposes only and does not constitute legal, tax, accounting, or investment advice. Tax rates, exemptions, fees, and regulations may change. Buyers and sellers should confirm the current rules with the relevant Turkish authorities and qualified professionals before completing a transaction.