Turkey Real Estate Taxes 2026: Investor Guide to New Valuation Increases (2026–2029) and Tax Exemptions

As 2026 approaches, foreign investors and property owners in Türkiye are turning their attention to the anticipated tax changes. The year 2026 is not a regular year on the Turkish tax calendar; it marks the beginning of the new “valuation cycle” (2026–2029), which will bring fundamental updates to real-estate assessments and directly impact your investment portfolio.

At Skyline Real Estate, we present this comprehensive analytical guide to help you understand what awaits you in 2026 and how to benefit from the legal exemptions available to foreigners—far from rumors.

What are the fundamental changes in real-estate taxes for 2026?

Many believe that higher taxes stem only from annual inflation rates, but the story in 2026 is different.

The focal point this year is the convening of the “Assessment Commissions” (Takdir Komisyonu). According to Türkiye’s Tax Procedure Law, these commissions meet once every four years to determine the “minimum value per square meter” for every street and neighborhood across the country.

1. Resetting the “Prevailing Value” (Rayiç Bedel)

While the property tax rate itself may remain unchanged (for example, 0.2% for residences), the tax base (the value on which the tax is calculated) will change dramatically.

• In previous years (2023–2025), increases were annual and tied to half of the Revaluation Rate (YDO).
• In 2026, however, market values will be re-surveyed, and reports indicate that increases in “prevailing values” (Rayiç Bedel) in major cities like Istanbul may range from 300% to 500% to narrow the gap between official values and true market prices.

2. Revaluation Rate (YDO)

Other government fees (such as title deed fees and passports) are linked to the annual Revaluation Rate, which is expected to be announced at the end of 2025.

For more on the broader economic context and inflation’s impact, see our analysis of Türkiye’s new 2025 economic program: effects on inflation, the lira, and the real-estate market.

Will property tax rise in 2026? By the numbers

The short answer: Yes, the final amount due will rise significantly—not because the “tax rate” goes up, but because the “registered property value” multiplies.

The table below illustrates, on an indicative basis, how the new valuation cycle (2026–2029) may affect a residential property in a major urban municipality (e.g., Istanbul) compared with 2025:

Item	Year 2025 (estimated)	Year 2026 (after Assessment Commissions update)
Prevailing property value (Rayiç Bedel)	2,000,000 TRY	8,000,000 TRY (assumes a 4x increase)
Property type	Residence in a metropolitan municipality	Residence in a metropolitan municipality
Property tax rate (Emlak Vergisi)	0.2% (2 per mille)	0.2% (2 per mille)
Annual tax due	4,000 TRY	16,000 TRY

Note: These figures are approximate for illustration. Commercial properties (shops and offices) are subject to a higher rate (0.4% in major cities).

How can foreigners get exemptions from property taxes? Facts and steps

Investors often confuse “VAT exemption at purchase” with the “annual property tax exemption.”

1. VAT Exemption (KDV İstisnası) — at purchase only

This is the most significant exemption for foreign investors and can save you 1% to 10% of the property price. To obtain it in 2026, you must meet the following conditions precisely:

• Residency: You must not be a resident in Türkiye (i.e., you do not hold a residence permit valid for more than 6 months).
• Foreign-currency transfer: The property price must be paid in foreign currency and converted through the Central Bank with proper documentation (Döviz Alım Belgesi).
• Property status: The property must be new (from the developer) and purchased for the first time (First Sale).
• Holding period: A commitment not to sell the property for at least one year (previously three years; please confirm legal updates at the time of purchase).

2. Annual Property Tax Exemption (Emlak Vergisi)

Are foreigners exempt from the annual tax? In most cases, no. Turkish law grants an exemption to retirees, homemakers, and those with no income, provided they own only one property not exceeding 200 m². For foreigners, applying this exemption is very difficult because the law requires having no income (inside or outside Türkiye), which usually does not apply to investors.

If you plan to obtain citizenship by investment, understanding your tax costs is essential. Read more in Required documents for Turkish citizenship — a comprehensive report.

Other taxes: Rental income tax and the Valuable Housing Tax

Beyond the annual property tax, 2026 brings updates affecting investment returns:

Rental income tax (Kira Gelir Vergisi)

The Turkish government has moved toward mandatory “digital contracts” via the e-Government portal (E-Devlet) to regulate the market.

• Exemptions: Tax-free thresholds for rental income have been reduced.
• Declaration: Owners must file an annual tax return in March for the previous year’s income. Failure to do so may result in retroactive penalties.

Valuable Housing Tax (Değerli Konut Vergisi)

With the rise in “prevailing values” in 2026, many properties may enter the “valuable housing” bracket that were previously exempt. This tax applies to properties exceeding a threshold set annually by the Revenue Administration. Upscale districts—such as Bebek in Istanbul—are among the most affected due to high valuations.

How do you pay property tax in Türkiye?

To avoid late-payment penalties (calculated monthly), you must adhere to deadlines.

When is property tax due in Türkiye?

Payment is made in two installments:

• First installment: during May.
• Second installment: during November.

How can I pay if I’m outside Türkiye?

No need to travel. You can use one of the following methods:

1. e-Government (E-Devlet): search for “Vergi Borcu Sorgulama” or access the relevant municipality’s services.
2. Municipality website: most large-city municipalities (e.g., Istanbul Metropolitan Municipality or district municipalities like Başakşehir) offer an “E-Belediye” option to pay by credit card.
3. Banking apps: if you have a Turkish bank account, pay directly via “Payments > Tax > Municipality.”

Conclusion

The year 2026 will bring a “price correction” in the tax-assessed values of real estate in Türkiye. As an investor, this should not alarm you—so long as you plan your budget based on actual figures rather than outdated assumptions. The rise in tax is accompanied by an even greater rise in the capital value of your real-estate assets.

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Disclaimer: The information in this article is for informational purposes and is based on data available up to November 2025. Tax laws are subject to change, so we always recommend consulting a qualified legal or tax advisor before taking any financial action.