Turkey with its fast-growing market, unique geographical condition, and young and dynamic workforce, promises a bright future therefore investing in Turkey seems to be a logical investment for foreigners.
Attractive investing benefits especially within the real estate sector, encourage foreigners to property purchases in Turkey, we took a detailed look at “Why Buying property in Turkey” is the best investment right now, you can check it here.
When dealing with any kind of investment you always want to calculate every risk, hidden cost, maintenance cost, and taxes, to get an overall picture of what you can expect from your investment in the long run.
At Bari Global we believe, clarity builds trust between clients and us, therefore, making every aspect of buying a house transparent, is crucial to our teams. We gather tax rates and examples that are applied to foreigners and not foreigners in Turkey.
Property Tax in Turkey
Property tax in Turkey should be paid every year by the property owners in the country. Rates of these taxes are the same for foreigners and nonforeigners. Calculation of Annual property taxes in turkey is done by the factors of value, location, and type of the property.
Property tax is considered a wealth tax, representing the wealth of real estate property, such as land, terrain, and building. Buildings located within Turkey’s territory are subjected to the real estate tax.
How Much is the Property Tax in Turkey?
It can vary from 0.1% to 0.6% depending on the location, value, and type of the property, for example, a property that is located in a large city can be taxed about 0.4% per year, meanwhile, properties in residences are taxed about 0.2% per year.
DISCLAIMER: rates stated above are calculated according to the property values, for getting more precise calculations, contact Bari Global’s legal department advisors from here.
VAT Exemption on Purchasing a Real Estate in Turkey
For foreigners that are not settled in Turkey yet, the Turkish government exempts them from VAT taxes on their properties, therefore, it makes the prices of the houses especially best in class properties in Istanbul that Bari Global gathers for you so attractive.
You can take a look at our projects here!
Income Tax in Turkey
Revenue is the income and earnings gained by a person in a year between 1st January to 31st December after all deductions are made. The income tax subjects can be goods, services, income, expenses, capital, savings, consumption, assets, wealth, actions, events, etc.
Rental Income Tax in Turkey
Income obtained from renting the property has an income tax on it, which is declared annually by calculating the rental income in a year. If the income is not taxed from the previous year, it is calculated as the income of the current year and collected with this year's tax.
Annual rental income is taxed and charged at a rate of 15% to 40% in Turkey. The income tax is paid in two equal installments in March and June.
Sample tax calculations:
Income Tax Rates
The income tax rates for income generated (excluding employment income)
The 2022 calendar year (in TRY):
But not over
Tax on lower
Tax Rate on Excess (%)
Social Security Min - Max. Wage
Inheritance Taxes in Turkey
Inheritance tax is the tax applied on goods belonging to Turkish citizens, or goods passed down from one person to another for some reason or the other.
The person should be within the borders of Turkey or should be a Turkish citizen for the tax to apply on these goods. The tax obligation starts on the declaration date when it is mandatory. In the cases in which the declaration is not required, the obligation starts from the day determined by the administration. The liquidation case starts on the completion date of the liquidation proceedings by the court.
Contact Bari Global, Makes Your Investment Process Easier
As we talked about the property taxing on the house or real estate in Turkey, Bari Global aims to make your investment process a whole lot easier than it looks, we make customized tax sheets for each individual client that wants to invest in Turkey’s real estate.
To get a better view of your investments in Turkey, do not miss to contact our professional teams.
Frequently Asked Questions:
1. Can I benefit from VAT exemption in my property purchase in Turkey?
For foreigners that are not settled in Turkey yet, the Turkish government exempts them from VAT taxes on their properties.
2. Is there a property tax in Turkey?
Yes, It can vary from 0.1% to 0.6% depending on the location, value, and type of the property, for example, a property that is located in a large city can be taxed about 0.4% per year, meanwhile, properties in residences are taxed about 0.2% per year.
3. Is buying property in Turkey worth it?
Turkey with its fast-growing market, unique geographical condition, and young and dynamic workforce, promises a bright future therefore investing in Turkey’s real estate seems to be a logical investment for foreigners.
4. Is there a tax on rental income in Turkey?
Income obtained from renting the property has an income tax on it, which is declared annually by calculating the rental income in a year.