Owning Multiple Properties in Turkey: 2025 Tax Implications

Turkey’s real estate market remains a top choice for local and foreign investors, offering strong rental yields and long-term appreciation. However, owning multiple properties—whether for personal use or rental income—comes with specific tax obligations. Understanding these rules can help you optimize returns and avoid penalties.

1. Annual Property Tax (Emlak Vergisi) for Residential & Rental Properties

Property tax is calculated as a percentage of the government-assessed tax value (usually lower than market value).

2025 Tax Rates:

• Residential Properties:

  • 0.1% (standard municipalities)

  • 0.2% (metropolitan areas: Istanbul, Ankara, Izmir, etc.)

• Rental/Commercial Properties:

  • 0.2% (standard municipalities)

  • 0.4% (metropolitan areas)

Example:

• A home in Istanbul (tax value: ₺1,500,000) → ₺3,000/year (0.2%).

• If rented out (commercial classification) → ₺6,000/year (0.4%).

Key Notes:
Each property is taxed individually—owning multiple properties increases total liability.
Foreign owners pay the same rates as Turkish citizens.
Tax values are periodically reassessed (last major update in 2024).

2. Rental Income Tax (2025 Updates)

If you lease your properties, rental income is subject to progressive income tax.

2025 Rates & Rules:

• Exemption Threshold: ₺35,000/year (up from ₺33,000 in 2024).

• Taxable Rates:

  • 15% (up to ₺70,000)

  • 20% (₺70,001–₺250,000)

  • 27% (₺250,001–₺880,000)

  • 35% (₺880,001–₺3,000,000)

  • 40% (above ₺3,000,000)

Deductions:

• 15% lump-sum expense deduction (no receipts needed), OR

• Actual expenses (mortgage interest, maintenance, management fees, depreciation).

Foreign Owners: Must pay tax on Turkey-sourced rental income, even if non-resident.

3. Capital Gains Tax (Property Sales in 2025)

• Held <5 years: 15–40% tax on profit (based on income bracket).

• Held ≥5 years: Exempt from capital gains tax.

Multiple Property Strategy:

• Selling within 5 years? Consider spreading sales across years to reduce tax exposure.

• Inflation Adjustment (2025): For properties bought before 2024, the cost basis is adjusted for inflation, reducing taxable gains.

4. Wealth Tax & Asset Declarations

• No wealth tax in Turkey (as of 2025).

• However, owning multiple high-value properties may trigger additional scrutiny in:

  • Citizenship by investment applications (must maintain property value).

  • Tax audits (especially for foreign owners).

5. VAT (KDV) on New Properties (2025 Changes)

• Residential purchases from developers: 1% VAT (for first-time buyers, <150m²).

• Commercial/luxury properties (>150m²): 18% VAT.

• Short-term rentals (Airbnb, etc.): If classified as a business, you may need to register for corporate tax (20%) instead of rental income tax.

Key Takeaways for Multiple Property Owners (2025)

✔ Higher rental income exemption (₺35,000) helps small landlords.
✔ Metropolitan areas have double property tax rates—factor this into ROI calculations.
✔ Selling before 5 years? Capital gains tax applies—plan sales strategically.
✔ Keep records of expenses to maximize deductions.

For official updates, check the Turkish Revenue Administration (Gelir İdaresi) or consult a local tax advisor.