Purchasing real estate in Turkey requires the payment of certain related taxes. The taxes associated with buying property in Turkey are very low. Generally, there are three types of taxes to be paid: title deed fee, value-added tax (VAT), and annual property tax.
The title deed fee is a tax that must be paid at the time of purchase, which is 4% of the property's sales price. In most cases, this is split into two, with the buyer and seller each paying 2%.
Value-added tax (VAT) is also required at the time of purchase, with a VAT rate of 18% for commercial properties. However, foreigners may be exempt from VAT when purchasing new properties in Turkey.
The annual property tax, also known as property holding tax, is paid once a year. The tax rate for general residential properties is typically between 1‰ and 2‰.