Property taxes (Emlak Vergisi) are paid annually on the tax values of land and buildings at rates ranging from 0.1 to 0.3 percent. Property tax returns are filed every four years; the tax is calculated based on the land and building’s facilities and the size of the plot in square metres. The rates are applied twice for property that is located in Metropolitan Municipality areas such as Istanbul.
Owners of rental properties are liable to pay property tax whether or not the owner lives in the property, however, those with an annual rental income of less than TL 3,600 are exempt. Those who have the right of usufruct (intifa hakkı) also have to pay property tax.
Property tax is paid to local municipalities in two instalments; the first is paid between March and May, and the second in November. Payment can be made at banks, by cheque, online, and in cash. If the tax is not paid on time, the owner of the property pays a penalty fee of approximately 2.5 percent of the amount each month.
Environmental Cleaning Tax
Environmental Cleaning Tax (Çevre Temizlik Vergisi) is a council tax which is paid by the owner or tenant who uses the property. It is included in the water bill of the property and is calculated on the basis of water consumption per cubic metre.
Property Transfer Tax
Turkish citizens or foreigners who own or sell land or property are legally required to pay property transfer tax (Tapu Harç Vergisi), which is paid on the basis of the actual sale or purchase price of the property.
The sum of approximately 1.5 percent of the value of the real estate needs to be paid by both parties on registration of the transaction at the Land Registry (Tapu Kadastro).