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Everything you need to know before buying real estate is included in our Turkey Property Pack
Property taxes in Turkey are relatively low compared to many European countries, with annual rates ranging from 0.1% to 0.6% of the assessed property value.
As of September 2025, residential properties in metropolitan areas like Istanbul and Antalya are taxed at 0.2% annually, while smaller municipalities apply a 0.1% rate. Commercial properties face higher rates of 0.4% in major cities and 0.2% in smaller towns, making Turkey an attractive destination for property investors seeking lower ongoing costs.
If you want to go deeper, you can check our pack of documents related to the real estate market in Turkey, based on reliable facts and data, not opinions or rumors.
Turkey's property tax system offers competitive rates with residential properties taxed at 0.1-0.2% and commercial properties at 0.2-0.4% annually.
Various exemptions are available for retirees, low-income individuals, and disabled property owners, while foreign investors receive the same treatment as Turkish citizens.
| Property Type | Metropolitan Areas | Smaller Municipalities |
|---|---|---|
| Residential | 0.2% | 0.1% |
| Commercial | 0.4% | 0.2% |
| Land Plots | Up to 0.6% | Lower rates apply |
| Luxury Properties (>15.7M TL) | 0.3%-1.0% progressive | 0.3%-1.0% progressive |
| Payment Schedule | Two installments annually | Two installments annually |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
What is the current property tax rate in Turkey?
As of September 2025, Turkey's property tax rates range from 0.1% to 0.6% of the municipality-assessed value annually.
Residential properties in metropolitan areas like Istanbul, Antalya, and Izmir are taxed at 0.2% per year, while the same properties in smaller municipalities face a 0.1% rate. Commercial properties carry higher rates of 0.4% in major cities and 0.2% in smaller towns.
Land plots can be taxed up to 0.6% in metropolitan zones, with lower rates applying elsewhere. Luxury properties valued above 15.7 million Turkish Lira are subject to progressive tax rates starting at 0.3% and escalating to 1.0% for the highest value brackets.
These rates make Turkey one of the more affordable countries in Europe for property ownership costs, especially when compared to countries like France or Germany where property taxes can exceed 1-2% annually.
It's something we develop in our Turkey property pack.
Are there different property tax rates depending on the region or city in Turkey?
Yes, Turkey applies different property tax rates based on whether the property is located in a metropolitan municipality or a smaller town.
Metropolitan municipalities, officially called "Büyükşehir," include major cities such as Istanbul, Ankara, Izmir, Antalya, and Bodrum, which all apply the higher tax rates. These cities tax residential properties at 0.2% and commercial properties at 0.4% annually.
Smaller municipalities outside these metropolitan areas apply reduced rates of 0.1% for residential properties and 0.2% for commercial properties. This two-tier system means property owners in rural or smaller urban areas pay exactly half the rate of those in major cities.
The distinction is important for investors considering whether to buy in prime city locations versus emerging areas, as the ongoing tax burden can significantly impact long-term investment returns.
How are property taxes calculated in Turkey?
Turkey calculates property taxes by multiplying the assessed value by the applicable tax rate for the property type and location.
The assessed value is determined by local municipalities and is often below the true market value, though recent reforms are pushing these assessments closer to market rates. For 2025, the taxable value may be increased by up to 21.965% over 2024 levels due to inflation adjustments.
The basic formula is: Assessed Value × Applicable Tax Rate = Annual Property Tax. For example, a residential property in Istanbul with an assessed value of 1 million TL would incur an annual tax of 2,000 TL (1,000,000 × 0.002).
Municipality assessors consider factors like location, property size, construction quality, and local market conditions when determining the assessed value. Property owners receive annual tax bills based on these calculations.
What factors can influence the amount of property tax in Turkey?
Several key factors determine the final property tax amount you'll pay in Turkey.
Location is the primary factor, with metropolitan areas commanding double the tax rates of smaller municipalities. Property type significantly impacts the rate, as commercial properties are taxed at twice the residential rate in the same location.
The municipality's assessment of your property value directly affects your tax bill, and these assessments can change annually based on local market conditions and inflation adjustments. Property size and usage also matter, with vacant land potentially facing different rates than developed properties.
Recent construction can qualify for exemptions, while luxury properties above 15.7 million TL face progressive higher rates. The frequency of municipal reassessments in your area can also influence how quickly your tax burden might increase over time.
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Are there exemptions or reductions available for property taxes in Turkey?
Turkey offers several property tax exemptions and reductions for specific groups and property types.
Retirees, low-income individuals, and disabled property owners can receive full or partial exemptions for one property. War veterans and families of martyrs also qualify for tax reductions under special provisions.
Heritage and cultural properties may be completely exempt from property taxes to encourage preservation. New construction projects can receive exemptions for up to five years to stimulate development activity.
Foreign property owners qualify for all the same exemptions and reductions as Turkish citizens, with no discriminatory tax treatment. However, these exemptions typically apply to only one property per eligible person, so multiple property owners will pay full rates on additional properties.
Some incentives exist specifically for investments in cultural or heritage properties, making these potentially attractive options for foreign investors seeking tax advantages.
How often are property taxes paid in Turkey?
Property taxes in Turkey are paid annually in two equal installments.
The first installment is due at the end of May, and the second installment must be paid by the end of November each year. This split payment system helps property owners manage their cash flow throughout the year.
Payments can be made directly at municipal offices or through online platforms, making the process convenient for both local and foreign property owners. Most municipalities now offer digital payment options to streamline the process.
Property owners should mark these dates in their calendars, as late payments incur fines and interest charges on the outstanding balance. Setting up reminders or automatic payments can help avoid penalties.
Is the property tax rate different for residential and commercial properties in Turkey?
Yes, commercial properties in Turkey face exactly double the tax rates of residential properties in the same location.
| Property Type | Metropolitan Areas | Smaller Municipalities |
|---|---|---|
| Residential Properties | 0.2% | 0.1% |
| Commercial Properties | 0.4% | 0.2% |
| Office Buildings | 0.4% | 0.2% |
| Retail Spaces | 0.4% | 0.2% |
| Mixed-Use Properties | Calculated by proportion | Calculated by proportion |
How does property tax in Turkey compare to other countries in the region?
Turkey's property tax rates are among the lowest in the Eastern Mediterranean and European region.
Greece applies similar rates of 0.1-0.2% for residential properties, making it comparable to Turkey's system. Bulgaria charges slightly higher rates at 0.15-0.25%, while Cyprus has completely abolished annual property taxes.
Most European Union countries charge significantly higher property taxes, with many exceeding 1% annually. Countries like France, Germany, and the UK often have property tax burdens 3-5 times higher than Turkey's rates.
This competitive positioning makes Turkey attractive for international property investors seeking lower ongoing costs. The combination of reasonable purchase prices and low annual tax burden creates favorable conditions for both investment and residential purposes.
It's something we develop in our Turkey property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Turkey versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the penalties for not paying property taxes in Turkey?
Turkey imposes fines and interest charges on overdue property tax payments.
Late payments immediately begin accruing interest on the outstanding balance, with rates typically aligned with Turkish banking interest rates. The longer the delay, the larger the accumulated penalty becomes.
Municipalities have enforcement powers for continued non-payment, including the ability to place liens on properties. In extreme cases of persistent non-payment, properties can be subject to seizure proceedings, though this is rare for individual residential properties.
Foreign property owners face the same penalty structure as Turkish citizens, with no special treatment or additional penalties. The enforcement process follows standard Turkish legal procedures regardless of the owner's nationality.
Most municipalities offer payment plans for property owners facing temporary financial difficulties, making it possible to avoid severe penalties through proactive communication.
Are property taxes in Turkey expected to increase in the near future?
While no major rate increases are announced for 2026, property tax bills may rise due to ongoing reforms and inflation adjustments.
The Turkish government is implementing reforms to align property assessments more closely with market values, increasing transparency but likely raising assessed values in major cities like Istanbul and Antalya. This means even with stable tax rates, actual tax bills could increase.
Annual inflation adjustments continue to push up assessed values, with 2025 seeing increases of up to 21.965% over 2024 levels. This mechanism ensures tax revenues keep pace with economic conditions but creates upward pressure on property tax bills.
High-demand metropolitan areas are most likely to see assessment increases as market values continue rising faster than inflation. Smaller municipalities may see more modest increases due to slower property value appreciation.
Property investors should budget for gradual tax increases over time, even without official rate hikes, particularly in prime urban locations.
Are there any tax incentives for foreign property owners in Turkey?
Foreign property owners in Turkey receive the same tax treatment as Turkish citizens, with no special rates or additional penalties.
All standard exemptions and reductions available to Turkish citizens also apply to foreign owners, including benefits for retirees, disabled individuals, and heritage property investments. This equal treatment policy makes Turkey welcoming to international property investment.
Foreign investors qualify for new construction exemptions, cultural property incentives, and other standard tax benefits. There are no discriminatory taxes or surcharges specifically targeting foreign ownership.
Some regions offer investment incentives for large-scale projects or developments that create employment, though these typically apply to commercial rather than residential property purchases. The citizenship-by-investment program also provides certain benefits for qualifying property purchases above $400,000.
It's something we develop in our Turkey property pack.
Can property taxes be deducted from income tax in Turkey?
Annual property taxes cannot be deducted from personal income tax in Turkey.
However, property-related expenses can be deducted when calculating rental income tax. If you rent out your property, expenses such as repairs, insurance, management fees, and maintenance costs are deductible against rental income, but the annual property tax itself is not.
For commercial property owners operating businesses, property taxes may be deductible as business expenses depending on how the property is used and the business structure involved. Individual residential property owners receive no income tax relief for property taxes paid.
This differs from some countries where property taxes are fully deductible against income, making it important for investors to factor the non-deductible nature of these taxes into their investment calculations.
Rental property investors should consult with Turkish tax advisors to maximize allowable deductions while staying compliant with local tax regulations.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Turkey's property tax system offers competitive rates for international investors, with residential properties in major cities taxed at just 0.2% annually.
The combination of low tax rates, available exemptions, and equal treatment for foreign owners makes Turkey an attractive destination for property investment from both cost and regulatory perspectives.
Sources
- A-M Law Firm - Property Tax in Turkey
- Property Turkey - Tax Reforms Information for Investors
- Tolerance Homes - Annual Property Tax Turkey 2025
- Global Property Guide - Turkey Taxes and Costs
- Ozan Soylu Law - Property Tax in Turkey Guide
- Tekce Exclusive - Real Estate Taxation in Turkey 2025
- Global Citizen Solutions - Turkey Property Taxes
- Terra Real Estate - Turkey Property Taxes Guide