Title Deed and Tax Procedures for Foreigners Buying Real Estate in Turkey

It is not enough for foreigners who buy real estate in Turkey to only complete the title deed transfer. Before the sale, it is necessary to obtain a tax number, issue a foreign currency purchase certificate, pay the title deed fees and check the municipal records of the real estate. In connection with this topic Real Estate Law You can also review the content titled.

After the title deed transfer, property tax notification, compulsory earthquake insurance, subscriptions and tax returns should be followed in case of income from the real estate. Being a foreigner does not automatically eliminate tax obligations regarding real estate in Turkey. Things to Consider in the Title Deed Transfer Process for Foreign Buyers its content explains other legal points related to this stage.

How are Foreigners' Title Deed Transactions Done?

Real estate ownership in Turkey is acquired by carrying out the official sale transaction and registering the foreign buyer as the owner in the land registry. Paying a deposit or signing an ordinary written contract between the parties alone does not constitute ownership.

The application can be made via Web Tapu or through the relevant land registry office. If the foreign buyer cannot come to Turkey, he can make transactions through his lawyer or representative with a power of attorney containing the necessary authorizations.

Documents Required for Title Deed Transfer

Although the required documents may vary depending on the citizenship of the buyer and the nature of the real estate, they are generally as follows:

• Valid passport or country ID,
• Notarized Turkish translation when necessary,
• Tax or foreigner identification number,
• Title deed and municipal fair value information of the immovable,
• TCIP policy valid for immovable properties in the nature of buildings,
• Foreign exchange purchase certificate,
• If a representative is to be used, appropriate power of attorney,
• Authorized sworn translator for the party who does not speak Turkish.

For purchases made for the purpose of Turkish citizenship, bank receipts, Amount Determination Certificate and documents regarding the commitment not to sell for three years are also required.

What is a Foreign Exchange Purchase Certificate?

In transactions where a foreign real person acquires real estate through purchase, the foreign currency related to the sales price must be converted into Turkish lira through a bank operating in Turkey. The foreign exchange purchase document issued by the bank is forwarded to the relevant land registry office before the title deed transfer.

The document must include the recipient's name, passport or foreigner identification number, and the amount of foreign currency exchanged. The amount of Turkish lira in the document is taken into account in determining the sales price in the official deed of the title deed.

Title Deed Fee to be Paid by Foreigners

In real estate sales, the title deed fee is calculated over the declared sales price, not lower than the property tax value. According to the general rule, the title deed fee of 20 per thousand, that is, 2 percent, is collected from the buyer and seller separately. Thus, the total title deed fee is 4 percent.

The parties may share the economic burden of this expense differently among themselves. However, showing the sales price lower than the actual amount in the title deed may lead to tax penalties, delay interest and payment proof problems.

What Other Costs Are There in Title Deed Transfer?

Do Foreign Buyers Pay VAT?

VAT is generally not calculated when purchasing a second-hand real estate from a real person who is not within the scope of commercial activity. In the first deliveries made by the construction company or commercial enterprise, VAT may arise depending on the nature of the real estate.

Some foreign buyers who are not resident in Turkey can benefit from VAT exemption for the delivery of their first residence or workplace if they meet the conditions specified in the law. This exception does not automatically apply to every foreign buyer and every real estate. The seller's tax liability, whether the real estate is delivered for the first time and the way the sales price is brought to Turkey should be examined before the transaction.

Real Estate Tax Notification After Title Deed Transfer

The foreigner who buys the real estate must make a property tax notification to the municipality where the real estate is located. Notification for immovables acquired in the first nine months of the year until the end of the year; For those acquired in the last three months of the year, it is made within three months from the date of acquisition. About the relevant aspect of the process Citizenship Process for Foreigners Buying Real Estate There is detailed information on the page.

Property tax liability starts in the year following the year of purchase. The tax is calculated on the real estate value determined by the municipality and is usually paid in two installments.

Property Tax Rates

The property tax rate in residences is 1 per thousand in normal municipalities and 2 per thousand within the borders of metropolitan municipalities. The rate in lands is 3 per thousand in normal municipalities and 6 per thousand in metropolitan cities; In lands, it is applied as 1 per thousand in normal municipalities and 2 per thousand in metropolitan cities.

The tax amount is calculated not only based on the purchase price, but on the property tax value determined by the municipality.

Is Tax Paid If Real Estate Is Rented Out?

If the foreign owner rents out his residence or workplace in Turkey, his income may be subject to tax in Turkey. Non-residents of Turkey may also have to file a declaration as a limited taxpayer due to the rental income they obtain from real estate in Turkey.

There is an exemption amount for housing rental income that is updated every year. This amount is 58,000 TL for 2026 calendar year revenues. For incomes above the exemption, the declaration obligation is evaluated by taking into account the expense method and other earnings. Also Legal Rights of Foreigners Buying a House in Turkey should be evaluated together with the concrete case.

It is important to receive the rental fees through the bank, to keep the payment records with the lease agreement and to follow the annual declaration periods.

If the Real Estate is Sold, Does Capital Gain Tax Arise?

If the purchased real estate is sold within five years and a profit is obtained from the sale, capital gains tax may arise. In the calculation, the indexed purchase price and legally deductible expenses and fees are deducted from the sales price.

The exemption amount for capital gains obtained in 2026 is 150,000 TL. The gain arising from the sale of the real estate after it has been held for more than five years is generally not subject to income tax if the sale is not within the scope of commercial activity.

Since real estate purchases and sales made continuously or within the organization can be considered commercial income, different taxation rules may be applied regardless of the five-year period.

Things to Consider in Title Deed and Tax Transactions

• Title deed registration and real estate debts should be examined before payment.
• The sales price must be declared in the title deed with its actual amount.
• The foreign currency purchase document must be issued before the title deed transfer.
• All payments must be made through the bank and with explanation.
• The property tax notification must be submitted to the municipality in due time.
• The declaration obligation for rental and sales income should be checked separately.

Frequently Asked Questions

Is a tax number required for a foreign buyer?

In order to carry out the title deed and tax transactions, the foreign buyer must be identified in the systems related to the tax or foreign identification number.

Does only the buyer pay the title deed fee?

In the legal calculation, a title deed fee of 2 percent arises separately for the buyer and the seller. The parties may determine the economic sharing of the expense differently with the contract.

Are foreigners obliged to pay property tax?

Yes. The foreign owner also becomes a real estate taxpayer for his real estate in Turkey. The obligation generally starts in the year following the year of purchase.

Can every foreign buyer benefit from VAT exemption?

The exception can only be applied if the buyer, immovable, first delivery and payment conditions specified in the law are met together.

Is tax paid on a sale made after five years?

If the real estate is not sold within the scope of commercial activity, the sales gain of the real estate held for more than five years is generally not subject to capital gain tax.

Do foreigners living outside Turkey pay rental tax?

A person who earns rental income from real estate in Turkey may face declaration and tax liability as a limited taxpayer, even if he does not live in Turkey.

Legal information: This content has been prepared for general information purposes. Tax exemptions, filing limits, and processing costs may change each year. Before the title deed transfer, rental or sale, a legal and financial evaluation specific to the real estate and the person should be made.