Guide to Property Taxes in Turkey

Nonresident individuals are generally subject to Turkish income tax on Turkish-source income, including income derived from real estate located in Turkey.

Married couples are generally taxed separately on their respective income.

Income Tax

For 2026, non-employment income, including taxable rental income, is subject to the following progressive personal income-tax rates:

*Numbers in parentheses represent the rates and brackets applicable to non-employment income.

Rental Income Tax

Rental income earned by a nonresident from real estate located in Turkey is generally subject to Turkish personal income tax.

For 2026, rental income from a property used as a residence benefits from an exemption of TRY 58,000, subject to the applicable conditions.

After the exemption, taxable rental income can generally be determined using either the actual-expense method or the lump-sum expense method.

Under the actual-expense method, qualifying expenses associated with the rented property can be deducted, subject to the applicable requirements. These can include management expenses, insurance, taxes and charges, repairs, maintenance, depreciation and qualifying financing expenses. For newly acquired residential property, 5% of the acquisition cost can also generally be deducted for five years beginning with the year of acquisition, subject to the statutory conditions and limitations.

Under the lump-sum method, the taxpayer can deduct 15% of the rental income remaining after the residential rental exemption. This replaces the older 25% deduction appearing in the original draft.

A taxpayer who elects the lump-sum method generally cannot switch back to the actual-expense method until two years have elapsed.

For a qualifying residential property using the lump-sum method, the simplified calculation is therefore:

Gross rental income
– TRY 58,000 residential exemption
= remaining rental income
– 15% lump-sum expense deduction
= taxable rental income

The resulting taxable income is subject to the progressive 15%–40% personal income-tax rates.

For a nonresident individual renting out residential property in Turkey, taxable rental income can be calculated using the 15% lump-sum expense deduction. A residential rental exemption of TRY 58,000 is available for 2026, subject to the applicable income limitations.

Assuming the investor has no other income, annual gross rental income of $18,000 remains within the income limit for the residential exemption. After deducting the TRY 58,000 exemption and the 15% lump-sum expense allowance, the estimated income tax is approximately $3,094, equivalent to 17.2% of gross rental income.

At annual gross rental income of $72,000 and $144,000, the applicable gross-income limit for the residential exemption is exceeded. The 15% lump-sum deduction can still be applied, resulting in estimated annual income tax of approximately $19,023 and $41,156, respectively. This represents effective income-tax rates of approximately 26.4% and 28.6% of gross rental income.

Capital Gains Tax

Turkey does not impose a separate general capital-gains tax on individuals. Instead, taxable gains from qualifying disposals are included within the personal income-tax system.

For an individual holding real estate outside a business activity, a gain from the disposal of property is generally exempt from personal income tax once the property has been held for more than five years, subject to the applicable conditions.

If the property is disposed of within five years, the taxable capital gain is generally subject to Turkey's progressive personal income-tax rates.

The taxable gain is broadly calculated by deducting the property's qualifying acquisition cost and permitted expenses from the disposal proceeds. The acquisition cost can generally be adjusted for inflation where the statutory requirements for indexation are satisfied.

A separate annual exemption can also apply to qualifying capital gains, with the amount determined for each tax year.

Corporate Taxation

The standard Turkish corporate income-tax rate is 25% for 2026. 

A Turkish company is generally taxed on its net taxable profits, including rental income and taxable gains from real estate, after qualifying business expenses and deductions.

Nonresident companies are generally subject to Turkish corporate income tax on taxable income attributable to their Turkish operations or permanent establishment, while other Turkish-source payments can be subject to separate withholding-tax rules.

Turkey has also applied a domestic minimum corporate tax regime since 2025, under which corporate tax generally cannot fall below 10% of income before specified exemptions and deductions, subject to the detailed statutory rules.

Property Buying and Selling Taxes/Costs

Annual Property Taxes

Turkey imposes an annual municipal Real Estate Tax (Emlak Vergisi) on buildings and land. The tax is calculated on the property's official tax value, determined under the Real Estate Tax Law.

The applicable annual rates are:

• Residential property: 0.2% within metropolitan municipality boundaries.

• Commercial and other buildings: 0.4% within metropolitan municipality boundaries.

• Land: 0.2% within metropolitan municipality boundaries.

• Building plots: 0.6% within metropolitan municipality boundaries.

The higher rates apply because the ordinary Real Estate Tax rates are doubled for properties situated within metropolitan municipality boundaries and their adjacent areas.