Real estates in Türkiye are subject to property tax annually according to certain criteria, regardless of whether their owners are Turkish citizens or foreign citizens.
Property tax is paid for buildings, land and land within the borders of Türkiye.
The definition of real estate in terms of property tax is as follows.
Building: Regardless of the material it is made of, it is all fixed construction both on land and on water. Floating pools, other floating structures, tents and mobile houses that can be attached to and towed by transportation vehicles and the like are not considered buildings.
Land: A part of the earth with horizontal and vertical boundaries, the boundaries of which are determined by adequate means.
Plot: Plot parceled by the Municipality within the municipal boundaries is considered as plot.
Property tax rates are stated below according to the type of real estate and the city where it is located.
| Residence | Workplace | Plot | Land | |
| In places outside the metropolitan municipality | 1 per thousand | 2 per thousand | 3 per thousand | 1 per thousand |
| Metropolitan municipality borders and adjacent areas | 1 per thousand | 4 per thousand | 6 per thousand | 2 per thousand |
The property tax declaration is submitted to the municipality where the real estate is located.
When the real estate is purchased, it is necessary to go to the municipality with the title deed and a copy of the passport of the foreign citizen owner and register the real estate. The property tax in the municipality is paid in two equal installments in May and November each year. After the first declaration is submitted, there is no need to submit a property tax declaration for other years. The property tax for the following years is automatically reflected in the system by the municipalities.
Property tax can be paid by credit card, bank transfer or in person at the municipal cashier’s office through the websites of the municipalities.
Property tax varies according to the province, district, street and street value of the real estate.
Foreign nationals and Turkish citizens are subject to the same rates in terms of property tax.
There are some discounts and exemptions in terms of property tax according to some criteria when the real estate is first purchased. These discounts and exemptions are benefited from if the municipalities make an application by taking these into consideration and the property tax declarations are organized accordingly. If not requested at the time of application, it is not possible to benefit from these opportunities in some cases, and in some cases it may be possible to benefit only for the remaining periods.
Buildings belonging to foreign states and used as embassies and consulates, buildings for the residence of ambassadors and their outbuildings (provided that they are reciprocal) and buildings belonging to international organizations headquartered in Türkiye and representative offices of international organizations in Türkiye are exempt from property tax.
Calculations and transactions related to property tax can be made by the foreign national in person or with a power of attorney.
If the foreign citizen does not reside in the real estate he/she owns and earns rental income from it, then an annual income tax return must be submitted in terms of the rental income obtained in this case. The income tax return is also submitted to the tax office where the owner of the real estate resides. If the person does not reside in Türkiye, it is submitted to the tax office to which the address of the real estate is connected. If the income tax return is not submitted, high penalties, late payment increases are paid and the right to benefit from some tax exemptions is also lost.
In order not to face penalties, the tax responsibilities that arise with the purchase of real estate in Türkiye should be thoroughly learned from the experts of the subject and these responsibilities should be fulfilled regularly in this direction.
By Ali KARAKUŞ
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
