What Are the Costs of Buying Property in Turkey: Title Deed Tax, VAT, Real Estate Agent Commission
By Burak Ünal, Founder & Managing Partner, Gordion Partners
· · 1 min read
In short
As general information, as of October 2026, buying property in Turkey involves a title deed fee of 4% of the declared price (2% from the buyer, 2% from the seller), a fixed revolving fund fee, a valuation report and, for a new build, VAT of 1%, 10% or 20% unless the exemption for non-resident foreigners applies. Owners then pay the annual property tax; a brokerage commission is set by the broker where one is used, and a licensed accountant can confirm what applies to your own purchase.
Contents
- Costs at a glance
- Title deed fee: 4% of the declared price
- Revolving fund fee (döner sermaye ücreti)
- The valuation report
- VAT on new-build property
- The VAT exemption for non-resident foreigners
- Other purchase costs
- Brokerage commission
- Costs of owning property in Turkey
- Costs and rules when you sell
- Buying for citizenship or a residence permit
- How to budget for a purchase
- Common mistakes
- How Gordion Partners helps
- Frequently asked questions
Key facts as of October 2026 (general information, not tax advice)
- Title deed fee: 2% from the buyer and 2% from the seller, 4% in total, on the declared price. Since Law No. 7566 (Official Gazette, 19 December 2025) the base may not be lower than the property tax value, and the penalty for under-declaration is 100% of the missing tax.
- Revolving fund fee: a fixed amount per transaction, not a percentage, charged separately from the title deed fee.
- Valuation report: required for every sale to a foreigner, prepared by an SPK-licensed firm and valid for 6 months; its fee is set by the valuation firm.
- VAT on a new build: 20% general rate, 10% and 1% reduced rates. For building permits dated on or after 1 April 2022, the net area up to 150 m² is taxed at 10% and the part above at 20%.
- VAT exemption: the first sale of a new residence or workplace to a foreigner not resident in Turkey, paid in foreign currency, can be exempt; selling within 3 years makes the VAT and interest due.
- Brokerage commission: set by the broker and agreed in writing, where a broker is involved.
Official sources: Resmî Gazete (resmigazete.gov.tr), TKGM, VAT exemption notice (tkgm.gov.tr), Revenue Administration (gib.gov.tr).
The costs of buying a property in Turkey are value added tax, title deed tax, real estate agent commission, valuation report and translator fees. I explain the breakdown of costs for buying real estate in Turkey as a foreigner.
Title deed tax in Turkey is 4%. It is calculated from the value declared at the title deed office for the transaction, which may not be lower than the property tax value (Law No. 7566, since 19 December 2025). If the property value is 3,000,000TL, then the title deed tax is 120,000TL. The 4% title deed tax in Turkey is split equally between buyer and seller.
Where a real estate broker is involved, the brokerage commission is set by the broker and agreed in writing; ask the broker for it before you start.
Foreigners need to do valuation report before they purchase the property. The report must be prepared by an appraisal firm licensed by the Capital Markets Board (SPK) and connected to the land registry's TADEBİS system.
If you want another person to complete the purchase on your behalf, you can give power-of-attorney at a notary in Turkey. Notary fees for a power of attorney follow the official notary tariff, which changes every year; ask the notary for the current amount.
If the foreigner doesn't speak Turkish, then there has to be a translator. The translator's fee depends on the city and the translator, so ask for it in advance.
Finally, for new properties from projects in Turkey, there is VAT (value added tax). For buildings with a permit dated on or after 1 April 2022, VAT is 10% on the net area up to 150sqm and 20% on the portion above; other rates (1% or the older rules) and an exemption for non-resident foreigners can apply, as explained below.
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Costs at a glance
As general information, as of October 2026, these are the costs a foreign buyer should budget for, in addition to the price:
| Cost | How it is set | When it is paid |
|---|---|---|
| Title deed fee (tapu harcı) | 2% from the buyer and 2% from the seller, 4% in total, of the declared price | At the land registry, before the signing |
| Revolving fund fee (döner sermaye) | A fixed amount per transaction | At the land registry, with the title deed fee |
| Valuation report | Set by the SPK-licensed valuation firm | Before the land registry appointment |
| VAT (KDV) | 1%, 10% or 20% on a new build, unless an exemption applies | To the seller, with the price |
| Translator, notary, power of attorney | Set by the translator and by the notary tariff | Before and on the day of the transfer |
| Compulsory earthquake insurance (DASK) | Premium of a standard state policy | Before the transfer of a residence, then every year |
| Brokerage commission | Set by the broker, agreed in writing | As agreed with the broker, where one is used |
| Annual property tax (emlak vergisi) | Set by law, on the property's tax value | Every year you own the property |
The sections below explain each item. They are general rules so that you are informed, not tax advice: for your own situation, ask a licensed accountant (mali müşavir) or tax advisor.
Title deed fee: 4% of the declared price
The title deed fee (tapu harcı, often called the title deed tax) is a state fee charged on every sale of real estate. The rate is 2% (binde 20) from the buyer and 2% from the seller, so 4% in total. The buyer and the seller can agree privately who pays, for example that the buyer pays the full 4%, but each remains liable to the tax office for its own share.
The base is the price declared at the land registry. Since Law No. 7566 (Official Gazette, 19 December 2025), the declared transfer price may not be lower than the property tax value, and the tax-loss penalty for under-declaration was raised from 25% to 100% of the missing tax. The rate itself did not change, and no reduced rate applies in 2026. As an illustration, on a declared price of 3,000,000 TL the total fee is 120,000 TL: 60,000 TL from the buyer and 60,000 TL from the seller. For more detail, see the 4% title deed tax.
Declaring the real price matters beyond the penalty. For a residence permit based on property bought from 16 October 2023, the sale price on the title deed must be at least USD 200,000, and for citizenship the title deed price is one of the three amounts that must reach USD 400,000. A lower declared price can therefore cost you the permit or the citizenship application.
Revolving fund fee (döner sermaye ücreti)
The revolving fund fee is a separate land registry charge. It is a fixed amount per transaction, not a percentage of the price. For 2026 it is calculated by multiplying a base amount by a local coefficient between 0.30 and 3.00, so it varies by location. The amount for your transfer is calculated together with the title deed fee and paid before the signing.
The valuation report
Every sale of real estate to a foreigner needs a valuation report stating the market value of the property. It is prepared by a valuation firm licensed by the Capital Markets Board (SPK) and requested through TADEBİS, the land registry's valuation system, or through Web-Tapu. The valuation firm sets its own fee, and the report is valid for 6 months, so order it when the transfer date is close.
For citizenship, three amounts must each reach USD 400,000: the title deed price, the bank-proven payments to the seller and the value in the valuation report. Only then does the land registry issue the Amount Determination Certificate (TTB). Since 28 September 2026, as reported by several law firms and news sources, any valuation firm licensed by SPK, active in the Turkish Valuation Experts Association (TDUB) and connected to TADEBİS may prepare citizenship reports; before that, only GEDAŞ could. For a residence permit based on property bought from 16 October 2023, the valuation report is not accepted in place of the title deed price. See the valuation report for foreign buyers and our title deed transfer and appraisal support.
VAT on new-build property
VAT (KDV) is mainly a question for new properties bought from a developer or another seller who charges VAT. When no exemption applies, the general rate is 20% and the reduced rates are 10% and 1%. The general rate was raised from 18% and the reduced rate from 8% by Presidential Decision No. 7346, in force since 10 July 2023.
- Building permit dated on or after 1 April 2022: the part of the net area up to 150 m² is taxed at 10% and the part above 150 m² at 20%.
- 1% rate: it survives mainly for urban-transformation projects under Law No. 6306 (risky buildings) and certain older permits.
- Building permit dated before 1 April 2022: the older matrix based on the land unit tax value and the metropolitan status still applies, with a rate of 1%, 10% or 20%.
Which rate applies therefore depends on the permit date, the size and the project type. Ask the seller to state the VAT on the sale agreement and the invoice, and have a licensed accountant check it before you sign.
The VAT exemption for non-resident foreigners
As general information, Article 13/1-i of VAT Law No. 3065 exempts from VAT the first delivery of a newly built residence or workplace to a foreigner who is not resident in Turkey, or to a Turkish citizen who has lived abroad for more than six months. The conditions are strict:
- the price must be brought into Turkey in foreign currency: at least half before the sale and the rest within one year;
- if the buyer disposes of the property within three years, the VAT that was not paid becomes due, with interest (the period was raised from one year to three years by Law No. 7394, from 1 May 2022);
- a foreigner who counts as resident in Turkey for tax purposes, for example by staying more than six months in a calendar year other than for a temporary assignment, cannot use the exemption.
No repeal or amendment of the exemption by Law No. 7566 (December 2025) or Law No. 7582 (June 2026) was found, and commentaries in 2026 describe it as still in force. Because the conditions depend on your own residence and plans, confirm them with a licensed accountant before you sign.
Other purchase costs
- Translator and interpreter: if you do not speak Turkish, a sworn translator must attend the signing at the land registry. The fee depends on the city and the translator, so ask for it in advance.
- Notary and power of attorney: if someone signs for you, the power of attorney is given at a notary in Turkey or at a Turkish consulate; notary fees and sworn translations follow the notary tariff, which changes every year.
- Compulsory earthquake insurance (DASK): a valid policy is normally required for the transfer of a residence and is renewed every year; see DASK for foreign owners.
- Bank and currency costs: the bank's exchange rate and charges for the transfer of the price. For citizenship the currency is sold to a bank in Turkey, which issues the currency certificate (DAB) before the transfer.
- Utility accounts: electricity, water, gas and internet subscriptions in your name, with the charges each provider sets.
Brokerage commission
A real estate brokerage commission only arises where a real estate broker is involved in the purchase. It is set by the broker and should be agreed in a written brokerage contract before the service starts, including which party pays it and what it covers. Ask for it in advance and check that the broker is registered.
Gordion Partners is an investment advisory firm, not a real estate brokerage, and does not charge a brokerage commission. Where a client needs real estate brokerage, such as a property search, viewings or the negotiation, it is provided by Burak Ünal, a registered real estate broker, through his own brokerage, and the commission is available on request.
Costs of owning property in Turkey
- Annual property tax (emlak vergisi): in general, owners pay a yearly property tax to the municipality where the property is located, calculated on the property's tax value under the rates set by law. The municipality can tell you the amount and the payment dates.
- Building management fee (aidat): in apartment buildings and residential complexes, the management charges a monthly fee for the common areas and services. Ask for the current amount and any planned works before you buy.
- Utilities and insurance: electricity, water, gas, internet and the yearly DASK renewal, plus any home insurance you choose.
- Residence permit: if the property supports your residence permit, the state fees for the permit and the card and the health insurance premium are paid separately; see the residence permit for property owners.
- Rental income: in general, income from letting a property in Turkey is taxable in Turkey and declared in an annual income tax return. A licensed accountant can confirm your obligations and how your home country treats the same income; our rental and after-sales advisory explains what to expect when you let.
Costs and rules when you sell
As general information, a seller pays its 2% share of the title deed fee, and a gain on the sale can be subject to income tax depending on how long you have owned the property and on your situation. If you bought with the VAT exemption, selling within three years makes the unpaid VAT and interest due. For citizenship, the title deed carries an annotation that the property will not be sold for three years: selling during that period, or later transferring it back to the previous owner or that owner's first-degree relatives, cancels the investment determination certificate. Check the tax side with a licensed accountant before you agree a sale.
Buying for citizenship or a residence permit
The costs above apply to every purchase. A citizenship or residence permit purchase adds conditions that affect the price you declare and the way you pay:
- Citizenship: the title deed price, the bank-proven payments and the valuation must each reach USD 400,000; the currency is sold to a bank in Turkey with a DAB before the transfer; the property is kept for three years. The process usually takes 8 to 12 months, with no guarantee. See citizenship by real estate investment.
- Residence permit: for property bought from 16 October 2023, the sale price on the title deed must be at least USD 200,000, and the property must be residential.
How to budget for a purchase
- Start from the price and add your share of the title deed fee: 2%, or 4% if you agreed to pay the seller's share too.
- Add the revolving fund fee and the valuation report.
- For a new build, add the VAT at the rate that applies, unless a licensed accountant has confirmed that you qualify for the exemption.
- Add translations, the interpreter, the notary for a power of attorney and the DASK policy.
- Add the brokerage commission if you use a broker, as agreed in writing.
- Plan the yearly costs: the property tax, the building management fee, the utilities and, if relevant, the residence permit renewals.
Common mistakes
- Declaring a lower price than the price paid: the penalty is now 100% of the missing tax, and the property can fall below a residence or citizenship threshold.
- Assuming the VAT exemption applies without checking your tax residence, or selling within three years after using it.
- Letting the valuation report expire before the transfer: it is valid for 6 months.
- Paying in cash, or paying before the DAB is issued for a citizenship purchase.
- Leaving the revolving fund fee, the DASK policy and the building fees out of the budget.
- Agreeing a brokerage commission only verbally.
How Gordion Partners helps
Gordion Partners is an investment advisory firm, not an accountant or tax advisor. We share the general rules above so that our clients are informed, and for each purchase we explain the steps, coordinate the valuation report and the land registry appointment and work with licensed professionals: a licensed accountant for your own tax position, a notary for powers of attorney and an independent lawyer for a legal opinion on the contract. Our guide to buying property in Turkey as a foreigner covers the whole process, our purchase assistance and real estate advisory pages explain how we help, and the property projects pages give information on projects in Turkey; they are not our listings. Our own fees are not published: contact us for fees, questions and service scope.
Frequently asked questions
How much is the title deed fee in Turkey?
As general information, the title deed fee is 4% of the declared price: 2% from the buyer and 2% from the seller. Since 19 December 2025 the declared price may not be lower than the property tax value.
Who pays the title deed fee, the buyer or the seller?
Each pays 2% by law. The parties can agree that one of them pays the full 4%, but each remains liable for its own share.
Is VAT charged on property in Turkey?
VAT applies mainly to new builds sold by developers. The rate is 1%, 10% or 20% depending on the permit date, the size and the project type; for permits from 1 April 2022, the net area up to 150 m² is taxed at 10% and the rest at 20%.
Can a foreigner buy a new property in Turkey without paying VAT?
The first sale of a new residence or workplace to a foreigner who is not resident in Turkey can be exempt if the price is brought in foreign currency. Selling within three years makes the VAT and interest due, and a foreigner who is tax-resident in Turkey cannot use it. Confirm your case with a licensed accountant.
How much is the real estate agent commission in Turkey?
Where a broker is involved, the commission is set by the broker and agreed in a written contract, so ask for it in advance. Gordion Partners is not a real estate brokerage; where a client needs brokerage, it is provided by Burak Ünal through his own brokerage, with the commission on request.
How much does the valuation report cost?
The fee is set by the SPK-licensed valuation firm. The report is required for every sale to a foreigner and is valid for 6 months.
What do I pay every year as a property owner?
In general, the annual property tax to the municipality, the building management fee, the utilities and the DASK renewal. Income from letting the property is in general taxable in Turkey; a licensed accountant can confirm your obligations.
Are the costs different when I buy for citizenship?
The same costs apply. In addition, the three amounts must each reach USD 400,000, the currency must be sold to a bank in Turkey with a DAB before the transfer, and the property must be kept for three years.
Official sources: Resmî Gazete, Law No. 7566 (resmigazete.gov.tr), TKGM, questions on sales to foreigners (tkgm.gov.tr), TKGM, VAT Law No. 3065 Art. 13/i (tkgm.gov.tr), TKGM, valuation report (yourkeyturkiye.gov.tr), Revenue Administration (gib.gov.tr).
Related services
The information on this page is general and is not legal, tax or investment advice. Rules, amounts and procedures change; contact us to confirm the current requirements before you act.
