Taxes · Fees · Selling Costs
Taxes & Selling Costs for Foreign Property Owners in Turkey
When foreign owners sell property in Turkey, they face several types of costs: title deed taxes, possible capital gains tax, annual property tax, agency commissions, legal and notary fees, as well as money transfer costs. This page explains each of these in clear, practical terms so that you can plan your budget before you sell.Main selling costs at a glance
Typical cost items for a foreign seller include:- Title deed transfer tax (tapu harcı) – usually 4% of the declared sale price
- Possible capital gains tax if you sell within 5 years of purchase
- Annual property tax and any unpaid utility or site fees
- Real estate agency commission (if you work with an agent)
- Notary, sworn translator and power of attorney costs (if applicable)
- Bank transfer and foreign exchange costs when moving funds abroad
Most asked questions about taxes & costs
Below you can find the key questions foreign sellers ask about taxes and selling costs in Turkey. The answers summarise general practice and are written for planning purposes; for detailed tax advice, you should also consult a local tax professional.Which selling costs should I budget for as a foreign property owner?
As a foreign seller, you should plan for the following possible costs: title deed transfer tax (usually shared
with the buyer), annual property tax and any arrears, agency commission if you use an agent, notary and sworn
translator fees, costs for issuing a power of attorney, and bank transfer or exchange costs when you send the
proceeds to your home country. In some cases, you may also owe capital gains tax if you sell within 5 years of
purchase.
What is the title deed transfer tax (tapu harcı), and who usually pays it?
The title deed transfer tax is a government tax charged at 4% of the declared sale price. Legally, it can be
paid by either party or shared, but in practice it is common for buyer and seller to split it 2%–2%. Sometimes
local buyers insist on paying the full amount; sometimes sellers agree to cover more to close a deal. The tax
must be paid before the final signing at the Land Registry Office, and payment receipts are part of the file.
Do foreigners pay capital gains tax when selling property in Turkey?
Yes. Foreigners and Turkish citizens are treated the same for capital gains tax. If you sell a property within
5 years of the date you acquired it, any real gain (after inflation adjustment) may be subject to income tax
at progressive rates. If you have owned the property for more than 5 years, or if you acquired it by inheritance
or donation, you are generally exempt from capital gains tax on the sale of that property.
Is there any tax if I sell my property after 5 years of ownership?
In principle, if you have owned the property for more than 5 years, capital gains tax on the sale is not applied.
However, you still need to make sure that your annual property tax has been paid up to date, and that all local
obligations such as site fees and utilities are settled before transfer. Other taxes in your home country may
also apply, depending on local law there.
Are tax rates different for foreigners and Turkish citizens when selling property?
No. Foreigners and Turkish citizens are subject to the same tax rules and rates on property sales. There is no
higher rate or special surcharge simply because you are a foreign owner. Title deed tax, annual property tax,
and capital gains tax (if applicable) are calculated using the same rules for everyone.
When is annual property tax due, and must I pay it before the sale?
Annual property tax in Turkey is usually paid in two instalments: the first between March and May, the second
in November. Before the sale, the municipality will issue a document confirming that there are no unpaid property
tax debts on the property. Any outstanding tax must be settled by the seller before the Land Registry transfer
can be completed, so it is wise to clear these in advance or include them in your cost planning.
Is VAT (KDV) payable when I sell my second-hand property as a private individual?
VAT (KDV) is generally associated with new properties sold by developers as part of their commercial activity.
When a private individual sells a second-hand property, there is normally no VAT on the sale itself. KDV would
already have been built into the original price when the developer sold the property for the first time. Your
main tax concern as an individual seller is capital gains tax if you sell within 5 years, not VAT.
How do exchange rate fluctuations affect my profit when I sell in Turkey?
In Turkey, the official sale is recorded in Turkish lira, even if you and the buyer agree on a price in USD or
EUR. Exchange rate changes between the time you agree on a price and the day of transfer can affect how much
you actually receive in your preferred currency. To reduce currency risk, it is common to fix the price in
writing in a foreign currency and include clear clauses about how any exchange rate difference will be covered
by the buyer on the day of payment.
What is the most cost-efficient way to transfer my sale proceeds to my home country?
The safest and most common method is an international bank transfer from your Turkish bank account to your
account abroad. You can hold the funds in Turkish lira or convert them to a foreign currency at your bank before
sending them. Online banking often offers better exchange rates than cash exchanges at the branch. There will
be some transfer and FX fees, so you may want to compare your bank’s rates and limits in advance and plan the
transfer in one or a few larger transactions rather than many small ones.
Can I legally take the sale proceeds out of Turkey in cash instead of using a bank transfer?
Carrying large amounts of cash out of the country is highly restricted and not recommended. Under customs rules,
passengers may carry up to the equivalent of 10,000 USD in cash without a declaration. Attempting to move larger
sums in cash can create serious legal and safety risks. For property sales, the clean and traceable route is
to receive and send funds via the banking system with proper documentation of the transaction.
Do I need to declare rental income or sale profits from Turkey in my home country?
Many countries require residents to declare worldwide income, including rental income and capital gains from
foreign properties. Whether you owe additional tax depends entirely on your home country’s tax laws and any
double-taxation agreements in place. It is important to keep all documents related to your rental income and
property sale and to consult a tax advisor in your own country for clear guidance on your reporting obligations.
What smaller costs should I not forget when planning my selling budget?
In addition to taxes and commissions, there are several smaller but important items: notary fees for passport
translations and powers of attorney, sworn translator fees at the Land Registry, any unpaid electricity, water,
gas or internet bills, and outstanding site or homeowners’ association fees. You may also need to renew DASK
insurance if it has expired, as it is mandatory for a sale. It is wise to collect and settle these items in
advance to avoid last-minute delays.