How To Calculate Turkish Property Taxes

The Turkish real estate industry has recently experienced significant development and growth. Many investors are drawn to the property sector, which offers numerous opportunities for those looking to make successful business decisions.

Turkish property tax

In Turkey, there is a tax paid on property by foreigners. Based on the Land Registry and the Cadastre Directorate, property owners are expected to pay tax that is about 4% of the value of the land. This total value of the land is usually lower than the sales price of the property. Also, unless there is a different type of agreement between both parties, the Turkish law on real estate tax experts the buyer and the seller to each pay 2% as tax on the property.

How to calculate property tax in Turkey

In Turkey, the property tax is calculated using a specific method that considers certain attributes of the property.

Calculating property tax in Turkey: Things to know

If you are looking to calculate property tax in Turkey, you need to have the following important information:

The unit value per square metre of the land that the property occupies as well as the total square meterage that the property covers.
The square meterage costs are based on the building carcass, wood, concrete, or masonry of the buildings and the house and the class of construction.
The tax rates of the businesses and residences that are outside or within this metropolitan municipality.
The total measurement of the external area of the building
Reduction of wear allowance
The difference between the elevator and the heater

The different ways to calculate property tax in Turkey

If you are looking to calculate the Turkish property tax, this can be done in two primary ways:

The median value in the scale that shows the usual cost of construction in square meterage gets multiplied by the building’s surface area.
If available, the differences obtained due to the above multiplication operation will be added to the value obtained of the differences in the heating, air conditioning, or elevator installation. This additional value is usually 8% for the air conditioning or heating and 6% for the elevator.
Therefore, the depreciation recorded, which depends on the type of construction and property age, is deducted from the total figure obtained above.
After the depreciation amount has been removed, the size or amount of the land calculated based on the minimum measurements gets added to the amount obtained above.

This is how you calculate the property tax in Turkey for a specific building or facility.

Yearly taxes on property in Turkey

In Turkey, all property owners must pay an additional annual tax to the government. The cities in Turkey are categorized as either small or large. Consequently, the total real estate tax owed on your property depends on its type and the size of the city. For instance, according to this classification, the total property tax you pay in Istanbul is approximately 0.2% of the property’s value. Your property tax will be determined based on the property type and whether it is situated in a small or large city. It can be calculated as follows:

Big cities: For all big cities, the property tax is 0.2% (residential properties), 0.4 % (commercial properties), 0.6% (lands), and 0.2% (farms).

Small cities: In the smaller cities, the property tax is 0.1% (residential properties), 0.2 % (commercial properties), 0.3% (lands), and 0.1% (farms).