New rules for real estate transactions are coming into effect in Turkey. The tax burden for buyers and owners will increase.
Starting from 2026, the practice of underreporting property values in transactions will officially end in Turkey. According to the new rules, the actual market value must be indicated in the tapu (title deed). The goal of the reform is to increase market transparency and combat shadow schemes.
Previously, during transactions, the so-called rayiç bedel was often used — an assessed (cadastral) value set by the municipality, which was usually significantly lower than the actual price of the property. From 2026, this practice is abolished: the basis for calculating taxes and fees will be the actual transaction amount agreed between the buyer and the seller.
The state fee for issuing a tapu is 4% of the declared property value. In addition, the fixed revolving fund fee of 6,681 TL per transaction remains in place. As a result, especially in resort regions like Alanya, the total transaction costs have increased significantly. Furthermore, Turkey imposes a mandatory annual property tax — in Alanya, this is 0.2% of the cadastral value.
For foreign buyers, the correctly declared property value in the tapu has not only tax but also migration significance. The cadastral (declared) value directly affects the legalization of residence in Turkey, particularly obtaining and renewing a residence permit (ikamet) and citizenship.
The difference between the actual transaction price and the value declared in the tapu is now monitored. Any discrepancies can result in significant fines for both the buyer and the seller.
The capital gains tax (Değer Artış Kazancı Vergisi) has also become a key factor in calculating investment profitability.
Who this tax applies to:
The capital gains tax applies if an individual (a Turkish citizen or a foreigner) sells a property within 5 years of purchase.
How to calculate the period:
The period starts strictly from the date of registration of ownership in the Tapu. For new constructions, the “in concrete” ownership period (as per the notary contract) is not counted — only the date of receiving the finished Tapu is considered.
The 5-year rule:
If you own a property for more than 5 full years, no capital gains tax is applied.
How the tax amount is calculated in 2026:
The tax is not paid on the full sale price, but on the net profit. The calculation formula accounts for inflation to protect the seller from lira devaluation.
Indexation:
The purchase price is adjusted according to the producer price index (Yi-ÜFE), which allows the old purchase price to be aligned with current conditions.
Deductions:
From the realized profit, transaction costs (Tapu tax), bank fees, and the annual tax-free minimum are deducted.
Tax-free minimum (2026):
In 2026, profit up to 150,588 TL is not taxed. Everything above this amount is taxable.
The tax is calculated according to the progressive income tax rate. Net annual profit (in TL) and tax rates:
Up to 190,000 — 15%
From 190,000 to 400,000 — 20%
From 400,000 to 1,000,000 — 27%
From 1,000,000 to 5,300,000 — 35%
Above 5,300,000 — 40%
From 2026, using old schemes with cadastral values instead of market values carries critical risks:
Digital control:
The government property valuation system automatically compares the transaction price with average market values in the area.
Huge tax upon sale:
If you declared $100,000 at purchase (although you paid $200,000), and after 3 years sell for $250,000, the tax office will consider your profit to be $150,000. Tax on such a “fictitious” profit can reach 35–40%.
Problems with fund transfers:
For capital repatriation (transfer of sale proceeds to a foreign account), Turkish banks require documents proving the legality of the full amount. You cannot legally transfer more to your country than is stated in the Tapu.
Migration risks:
When renewing a residence permit or applying for citizenship, compliance of the investment with real market prices is checked. Discrepancies can be a reason for refusal.
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