Property taxation in Turkey

The payment of the tax is regulated by the Property Tax Law 1319 of 29.07.1970 (Emlak vergisi kanunu, hereinafter referred to as the Law).

The object of taxation with this tax is real estate located in Turkey (buildings, structures, land plots), and the tax payers are the owners of real estate (Articles 1-3 of the Law).

The tax has 3 components:

• building tax (construction tax);
• land tax (land tax);
• property tax.

The payment of tax for a land plot on which construction is carried out is terminated from the next year after the year the building is put into operation (Article 19 of the Law).

Procedure for declaring and paying tax

• from March to May - half of the annual tax;
• during November - the rest of the tax.

• until the end of February;
• until the end of August.

• modernization (including an extension, installation of an elevator, heating systems) or partial liquidation of real estate;
• changing the purpose of the use of buildings and premises;
• change in the state and arrangement of the land plot (including division of the land plot).

• 0.1% for residential properties;
• 0.2% for other objects.

In addition, for expensive residential real estate (from 2023 - more than ₺9,967,000) higher rates are provided - the so-called valuable housing tax:

• 3% of the part of the tax value ranging from ₺9,967,000 to ₺14,951,000;
• ₺14,952 + 6% of the part of the tax value from ₺14,951,000 to ₺19,936,000;
• ₺44,862 + 10% on the part of the tax value over ₺19,936,000.

Individuals who own a single dwelling, as well as developers of residential real estate, are exempt from the tax on valuable housing (Article 46 of the Law).

A number of benefits are provided, in particular, 1/4 of the tax value of buildings or apartments used as housing and not less than ₺2,500 per year - for the year of commissioning and for the next 5 years. If the real estate ceases to be used as housing, then the benefit ceases from the next year (Article 5 of the Law). Also, the tax rate can be reduced depending on the financial condition of persons, including pensioners.

The tax rate for land tax is from 0.1% to 0.3% (Article 18 of the Law):

With regard to land tax, there is also a relief in the amount of the tax value of ₺10,000 per year. The President of Turkey has the right to increase this benefit up to 3 times (Article 16 of the Law).

Also, the President of Turkey has the right to reduce rates up to 2 times or increase up to 3 times (Art. 8, 18 of the Law).

The payment of the tax is regulated by the Vehicle Tax Law 197 of February 18, 1963 (Motorlu taşıtlar vergisi kanunu, hereinafter referred to as the Law in this section).

Taxpayers are persons who own vehicles registered in Turkey (Art. 1, 7 of the Law). The obligation to pay tax arises from the beginning of the calendar year (when registering the vehicle in the first half of the year), otherwise - from the second half of the year.

Without paying the tax, registration actions and technical inspection of the vehicle cannot be carried out. Their movement may also be restricted and a fine of 1/4 of the amount of the tax may be imposed every 15 days (Article 13 of the Law).

In a number of cases, tax relief is provided, in particular, for the disabled (Article 4 of the Law).

Procedure for declaring and paying tax

The taxation period is a calendar year and the tax is charged at the beginning of each year. In this case, the tax is charged taking into account the period of registration actions with the vehicle - in the first half of the year (then the tax is charged from the middle of the year) or in the second half of the year (then the tax is charged from the next year). The tax authority does not notify taxpayers, the tax is considered (Article 9 of the Law).

The tax is paid in two early payments - in January and July of the current year. If there have been changes in the parameters of the vehicle in the first half of the year, then the amount of tax for the second half of the year is determined based on the changed parameters. When registering a vehicle, the tax for the corresponding half-year is paid no later than one month.

You can pay the tax at the tax authority at the place of registration of the vehicle (or a special authority authorized to collect this tax), at a bank, or through an authorized private company.

The submission of a declaration is not required. Registration authorities transmit the necessary information to the tax authorities.

Tax calculation

The tax is calculated based on vehicle parameters, such as power, engine size, weight, and age of the vehicle.

For passenger cars, the amount of tax depends on three parameters: engine size, cost, and age of the car. In this case, the cost of the vehicle is determined on the date of its first registration (5 of the Law).

For example, the annual amount of tax for an engine size from 1301 to 1600 cm³ is determined by 3 ranges of the cost of the vehicle:

• with a cost of not more than ₺40 thousand, the annual tax will be: ₺1294 (1-3 years), ₺970 (4-6 years), ₺563 (7-11 years), ₺398 (12-15 years), ₺153 (16 and over years);
• with a cost of ₺40 thousand to 70 thousand, the annual tax will be: ₺1423 (1-3 years), ₺1067 (4-6 years), ₺619 (7-11 years), ₺437 (12-15 years), ₺168 (16 years and over);
• with a value of more than 70 thousand, the annual tax will be: ₺1553 (1-3 years), ₺1164 (4-6 years), ₺675 (7-11 years), ₺477 (12-15 years), ₺183 (16 or more years).

For motorcycles, the amount of tax depends on two parameters: engine size and age.

For cars and motorcycles with an electric motor, instead of engine size, its power is taken into account.

For more details, rates can be viewed in the Law, or seek our advice.

For 2023 tax amounts for cars and motorcycles, see here.