Turkish income tax on property

Turkish income tax on property

Before buying real estate in Turkey, you should familiarise yourself with Turkey income tax on property for foreign nationals.  You should also learn the tax laws regarding income earned in Turkey, particularly if you are planning to run a business or earn rental income from your Turkish property.

Taxes in Turkey can be divided into three categories:

  • Income tax
  • Taxes on expenditures
  • Taxes on wealth

Regardless of whether you are simply buying a private holiday home for personal use, you should be clued up on all three types of taxes so take the time to research this.

Income taxes in Turkey function similarly to those in the UK, US and EU generally. They are progressive, meaning that the higher an individual’s income, the higher his or her tax rate, with the percentage varying from 15% to 35%.

Non-residents are required to pay income taxes on income earned in Turkey only.  This includes employment, income tax on property ownership (such as tax on rental income in Turkey), and running a business.

If you earn interest on any investments in Turkey, these are also subject to tax. Bear in mind that if you buy a holiday home that you choose to rent out, you’ll have to pay taxes on the income you earn from the rental income.

The basic individual income tax rates are structured as follows:

  • 0-10,000 Turkish lira is taxed at 15%
  • 10,001-25,000 Turkish lira is taxed at 20%
  • 25,001-58,000 Turkish lira is taxed at 27%
  • 58,001 Turkish lira and above is taxed at 35%