How Much is the Real Estate Purchase Tax in Turkey?

Title Deed Fee (Transfer Tax)

The Title Deed Fee (Transfer Tax) is one of the most important taxes payable during real estate purchase transactions.
It is calculated at a total rate of 4% on the sales price. For example, for a house worth ₺1,000,000, the title deed fee will be ₺40,000. This amount is usually shared equally, with the buyer and the seller each paying 2%.

Normally, the buyer and the seller each pay 20,000 ₺, making a total of 40,000 ₺. However, the parties can agree that the fee will be paid entirely by the buyer. The fee must be paid at the land registry office during the transaction, and the process cannot be completed without a payment receipt.

 

Revolving Fund and Cadastre Fees

In Turkey, in addition to the title deed fee, a revolving fund fee is charged for every real estate transaction. This fee is based on a fixed amount, which may slightly vary depending on the city and the type of process. Generally, it is around a few hundred liras.
In some cases, an additional cadastre fee may also apply—especially for new parcel registrations or project-based transactions. Therefore, it is important to consider not only the revolving fund fee but also potential cadastre fees when buying property.

 

VAT (Value Added Tax)

VAT (Value Added Tax) is a tax applied to the sale of goods and services in Turkey. When is it applicable? VAT is charged only for new construction projects or commercial real estate purchases.

Depending on the type of property, VAT rates can be 1%, 8%, or 18%. For example, when buying a brand-new apartment, VAT may already be included in the sales price, creating an additional cost for the buyer. However, for second-hand residential properties, VAT is usually not applied, making them a more attractive option.

Knowing whether VAT applies is crucial for buyers, as it plays a significant role in new projects but provides a considerable advantage in second-hand purchases.

 

Capital Gains Tax

Another important issue in real estate transactions is the Capital Gains Tax. This tax applies not when buying, but when selling the property.

If you sell a property within 5 years of purchase, you may need to pay income tax on the difference between the buying and selling prices. Properties sold after 5 years are exempt.

For example, if you purchased a house in 2022 for ₺800,000 and sold it in 2025 for ₺1,200,000, you would make a profit of ₺400,000. After deducting the annual exemption amount (approximately ₺55,000), you would be liable to pay income tax on the remaining profit.