What Taxes Are Paid on Purchase?

Why It's Important to Understand the Taxes Upfront

Buying property in Turkey isn’t just about picking a seaside apartment or an investment in Istanbul. Behind the appealing image lie concrete figures: besides the price of the property itself, the buyer assumes mandatory taxes and levies that can add 6–10% to the cost. To avoid any unpleasant surprises, let’s examine each tax and expense a foreign buyer will face.

Property Transfer Tax (Tapu Harcı) — 4%

The main tax paid directly when purchasing property in Turkey is the property transfer tax (Tapu Devir Vergisi, or Tapu Harcı). The rate is a fixed 4% of the cadastral value of the property, as stated in the title deed — TAPU.

Officially, the tax is split equally: 2% payable by the buyer and 2% by the seller. In practice, however — especially on the secondary market — the vast majority of sellers pass their half onto the buyer. As a result, the buyer ends up covering the full 4%. This should be explicitly discussed and documented in writing when the contract is signed.

On what amount is the tax calculated? It is based on the cadastral value determined by the municipality. By law, the TAPU must show the actual transaction price, and undervaluing may result in a fine. Nevertheless, the cadastral assessment can still be below market value — particularly in resort areas where prices outpace municipal indices. This slightly eases the tax burden.

Example calculation: if the cadastral value of an apartment is 100,000 USD, the transfer tax amounts to 4,000 USD. At a market price of 120,000 USD, that equals approximately 3.3% of the actual cost.

VAT (KDV) on New-Build Purchases: 1% to 20%

When buying a property from a developer (new construction or off-plan), value added tax — KDV — comes into play. On the secondary market, VAT does not apply. The rate depends on the property’s size and type:

• 1% — residential property up to 150 m². The most common and favourable rate for buyers of apartments and small villas;
• 8–10% — residential property over 150 m² (spacious villas, penthouses);
• 18–20% — commercial property (offices, shops, hotel rooms).

A crucial detail: in many projects, developers incorporate VAT into the price of the lot. Before signing the contract, always check whether KDV is included in the listed price or will be added on top — this makes a substantial difference to the total. Furthermore, for foreigners purchasing property in Turkey for the first time and paying in a foreign currency (not lira), a VAT exemption may be available in some cases. Conditions should be verified with the developer or the project’s lawyer.

State Duties and Related Expenses During Registration

In addition to the two main taxes, the transaction involves several compulsory and incidental payments:

• TAPU registration fee — a fixed payment of around 1,775 Turkish lira. From 2026, an additional levy of approximately 750 lira will be added;
• Mandatory property valuation — since 2019, foreign buyers must obtain an official valuation report from an accredited company. The cost is approximately 150–300 USD, depending on the region and property type;
• Sworn translator — a mandatory requirement when registering a transaction involving a foreign national. Translator services cost around 50–150 USD;
• Legal assistance — not mandatory but highly recommended. Checking the property’s legal status, reviewing the contract, and assisting with the transaction typically cost 500–2,000 USD;
• Agency commission — if an estate agent handles the deal, the standard commission is 3–4% of the property value, paid by either the buyer or the seller (as agreed).

Annual Property Tax (Emlak Vergisi)

This tax is not paid at the time of purchase, but annually — and it pays to be aware of it in advance to accurately budget the cost of ownership. Emlak Vergisi is assessed by the municipality based on the cadastral value. Rates for residential property:

• 0.1% — for properties in small towns and villages;
• 0.2% — for properties in major cities (Istanbul, Ankara, Izmir, Antalya, Bursa).

For commercial property, the rate is 0.2–0.4%, and for land plots, 0.3–0.6%. In absolute figures, the annual tax on a typical Turkish apartment rarely exceeds 100–150 USD per year — which, compared to tax burdens in European countries, is quite modest.

In Brief: Tax on Subsequent Sale

Although this article focuses on purchase taxes, it’s helpful to know about the tax on resale, as it affects investment attractiveness. If you have owned the property for more than 5 years, you are completely exempt from capital gains tax. If you sell earlier, income tax is charged on the difference between the purchase and sale price at progressive rates of 15% to 35% (with a tax-free allowance that in 2025 is about 120,000 TL). That is why many investors stick to a five-year holding strategy.

Conclusion: How Much You Really Need to Budget for Purchase Taxes

To sum up, when buying property in Turkey, a foreign buyer should allow for the following taxes and mandatory costs beyond the property price:

1. Property transfer tax (Tapu Harcı) — 4% of the cadastral value;
2. VAT on new builds (KDV) — 1% to 20% (only when buying from a developer, often already included in the price);
3. State duties, valuation, translator — approximately 400–600 USD;
4. Legal and agency support — as agreed.

On average, extra expenses when buying a ready home on the secondary market total 6–8% of the property value. For new builds, they can reach 10% or more if VAT is not included in the developer’s price. By knowing these figures in advance, you can accurately plan your budget and avoid unpleasant surprises when you sign that coveted TAPU.