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As of January 2026, major amendments have come into force within Turkey’s real estate legal framework. These changes include the revaluation of official property values (Rayiç Bedel), the unification of tax calculation mechanisms, and stricter oversight of sale and title transfer transactions—applicable to individuals, companies, and foreign investors alike.
This guide provides a precise, professional explanation based on the official laws and regulations currently in force in Turkey, presented in a clear and structured manner to support investors and decision-makers.
Comprehensive Updates to Real Estate Laws in Turkey – 2026
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Official Property Value (Rayiç Bedel)
The official property value is the legally binding reference price determined by Turkish municipalities and serves as the basis for calculating all real estate–related taxes and fees.
In 2026, a nationwide revaluation was implemented to align official values more closely with actual market prices. As a result, it is no longer legally permissible to register any transaction at a value lower than the officially determined Rayiç Bedel.
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Title Deed Transfer (Tapu Transactions)
The title deed transfer fee is fixed at 4% of the officially registered value in the land registry (Tapu).
Any private agreement between buyer and seller is disregarded if it states a value lower than the official value. Declaring an incorrect price exposes all parties to tax penalties and legal liability.
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Property Sales – Different Scenarios
Sale from Individual to Individual
Subject to title deed transfer fees
Subject to capital gains tax if sold within the first 5 years
First-Time Sale (New Property)
May be subject to Value Added Tax (VAT / KDV)
VAT exemption available to foreigners under specific conditions
Sale by a Company
Subject to corporate income tax
Requires formal accounting records and official tax filings
Sale by a Non-Natural Person (Inheritance or Legal Entity)
Legal status must be formally documented
May trigger additional taxes (inheritance or donation tax)
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Capital Gains Tax on Sale
Capital gains tax applies if a property is sold within five years from the date of acquisition.
The tax is calculated based on the difference between the officially registered purchase and sale values, adjusted using the inflation coefficient issued by the Ministry of Finance.
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Rental Income and Taxation
Rental income is classified as taxable income and must be declared annually.
Residents of Turkey: Subject to full income tax
Non-residents: Subject to limited tax liability (Dar Mükellefiyet)
Failure to declare rental income results in penalties and late-payment interest.
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Value Added Tax (KDV)
VAT applies to newly built properties or properties sold by companies.
VAT rates vary depending on property type and may reach 20%
Specific VAT exemptions apply to foreign buyers purchasing for the first time in foreign currency, subject to a legally mandated holding period
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Land Tax
Land tax applies to undeveloped land and is calculated based on the updated official values introduced in 2026.
Development zones have experienced a notable increase in tax burden due to revised valuations.
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Exemptions and Exceptions
Potential exemptions include:
Certain inheritance cases within legal thresholds
VAT exemptions under clearly defined conditions
The right to object to official property values within statutory time limits
No exemption should be assumed without proper legal review.
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Frequently Asked Questions (FAQ)
Q: Can a property be sold at a value lower than the official value?
A: No. The law explicitly prohibits this.
Q: Is it possible to object to the official property value?
A: Yes, through the municipality or administrative courts within the legally defined timeframe.
Q: Is the increase in official property value always negative?
A: It increases tax liability but strengthens the legal standing and registered value of the asset.
Conclusion
In 2026, real estate decisions in Turkey are no longer driven solely by price. Tax planning, legal structuring, and timing have become decisive factors.
Any purchase or sale carried out without a thorough understanding of these elements may result in significant hidden costs.
Frequently asked questions
What is the official property valuation (Rayiç Bedel) in Turkey?
The official property valuation is the reference price set by Turkish municipalities and serves as the legally mandated basis for calculating all property taxes and fees.
Can a property be sold for less than the official valuation in Turkey in 2026?
No, starting in 2026, Turkish law prohibits registering any property transaction for a value lower than the officially approved valuation.
What is the property transfer fee (Tapu) in Turkey?
The property transfer fee is a fixed 4% of the official valuation recorded in the Tapu, regardless of the price agreed upon by the parties.
Is the sale of property subject to capital gains tax in Turkey?
Yes, capital gains tax is levied if the property is sold within the first five years of ownership.
How is capital gains tax calculated on the sale of property in Turkey?
It is calculated on the difference between the purchase price and the officially registered sale price, after applying the inflation rate approved by the Ministry of Finance.
Is rental income subject to tax in Turkey?
Yes, rental income is taxable income and must be declared annually, whether for residents or non-residents.
