Alanya Property Tax for Foreigners: 2025 Practical Guide
If you are planning to buy a home or investment apartment in Alanya, the first tax question is usually simple: how much will I pay in Turkey as a foreign buyer? This guide explains the main tax items from purchase to rental income and resale, with a practical focus on foreign owners.
This is a 2025 guide. Tax thresholds and exemptions are updated regularly, so the tax structure is stable but some figures change year by year. Always recheck current thresholds before filing. :contentReference[oaicite:0]{index=0}
- Purchase stage taxes
- Annual property tax
- Rental income tax
- Capital gains tax
- VAT exemption rules for foreign buyers
1) Taxes at the Purchase Stage
Title Deed Transfer Fee (Tapu Transfer Fee)
The title deed transfer fee is one of the main closing costs in Turkey. Under the official fee tariff, the transfer and acquisition sides are charged separately at per mille 20 each on the declared value. This means a total 4 percent title deed fee in a standard sale transaction. :contentReference[oaicite:1]{index=1}
In practice, the legal split is often handled differently in the market. Many residential transactions are closed with the buyer paying the full 4 percent, especially in foreign sales, unless the parties agree otherwise in advance. Confirm this point before paying a reservation fee or deposit. :contentReference[oaicite:2]{index=2}
- Property price: EUR 100,000
- Title deed transfer fee (if buyer pays all): about EUR 4,000
VAT (KDV) on Property Purchases
Turkey applies VAT at rates from 1 percent to 20 percent, and the general VAT rate is 20 percent. Property VAT can vary depending on the type of property and project classification, so VAT should be checked per listing, not assumed. :contentReference[oaicite:3]{index=3}
For foreign buyers, the key opportunity is the VAT exemption available in certain cases for qualifying first deliveries of residences or workplaces. When the conditions are met, the saving can be substantial.
Example for a unit subject to 20 percent VAT:
- Net sale price: EUR 100,000
- VAT at 20 percent: EUR 20,000
- If exempt, that VAT cost can be avoided
This is one of the biggest reasons tax planning should be done before signing.
2) Annual Property Tax in Alanya
Turkey's annual property tax rates are low compared with many other markets. The Revenue Administration's property tax summary states:
- Residential properties: 0.1 percent
- Commercial properties: 0.2 percent
For properties in metropolitan municipalities, these rates are applied at double the standard level:
- Residential: 0.2 percent
- Commercial: 0.4 percent
Alanya is in Antalya, which is a metropolitan municipality, so most Alanya buyers should budget with the metropolitan rates. :contentReference[oaicite:4]{index=4}
Simple Annual Tax Example
If you estimate on a EUR 100,000 residential property, the annual property tax is often roughly around EUR 100 to EUR 200 depending on the taxable municipal value and official valuation basis. This is one reason Alanya remains attractive for long term foreign ownership.
3) Rental Income Tax for Foreign Owners
If you rent out your property in Alanya, your rental income may be taxable in Turkey. The Revenue Administration's non-resident rental income guide confirms that people not settled in Turkey are taxed only on income earned in Turkey, and Turkish rental income is within that scope. :contentReference[oaicite:5]{index=5}
Annual Declaration and Filing Period
Turkey uses the Hazır Beyan system for relevant personal declarations. For income earned in 2025, the Revenue Administration guidance states the declaration period is 1 to 31 March 2026. This is a key date for foreign owners who collect rent regularly but report annually. :contentReference[oaicite:6]{index=6}
2025 Residential Rental Exemption
The Revenue Administration rental guidance states the 2025 residential rental income exemption amount is TL 47,000. This exemption amount changes by year, so do not use old figures when planning your declaration. :contentReference[oaicite:7]{index=7}
2025 Progressive Income Tax Brackets (Relevant for Rental Income)
Turkey's personal income tax is progressive. For 2025, the official tariff sets the main brackets as:
- Up to TL 158,000: 15 percent
- Up to TL 330,000: 20 percent bracket rate
- Up to TL 800,000: 27 percent bracket rate
- Up to TL 4,300,000: 35 percent bracket rate
- Above TL 4,300,000: 40 percent bracket rate
The final tax amount depends on the progressive calculation, deductions, and whether exemption rules apply, but these thresholds are the core planning framework for landlords. :contentReference[oaicite:8]{index=8}
Practical Rental Tax Advice
A lot of tax problems come from paperwork, not tax rates. Foreign owners should keep a simple file with:
- Lease contract
- Bank receipts
- Currency conversion records if rent is collected in EUR or USD
- Expense documents
- Contact details of a local accountant or tax advisor before March filing season
If you use a property management company in Alanya, make sure they provide a clean monthly income statement and payment history. It makes annual reporting much easier.
4) Capital Gains Tax When You Sell
The most important resale rule for individuals is the 5 year holding period.
The Revenue Administration guide on real estate disposal explains that value increase gains from real estate sold within 5 years can be taxable. In practical terms, this means that for individuals, a sale after the 5 year holding period generally falls outside this specific value increase gain taxation, subject to the facts and current rules. :contentReference[oaicite:9]{index=9}
If You Sell Before 5 Years
If you sell within 5 years, Turkey does not simply tax the raw difference between buying and selling price. The Revenue Administration guide explains that the acquisition cost may be updated using the YI UFE index when the legal conditions are met. In inflationary periods, this can materially reduce the taxable gain.
This is why many foreign owners should run a tax calculation before listing their property. A sale that looks highly profitable in nominal terms may have a much smaller taxable gain after indexation.
5) How to Benefit from the Foreign Buyer VAT Exemption
The VAT exemption is powerful, but only if the file is structured correctly from the start. Based on legal and practice guidance around VAT Law article 13/1-i, the key conditions are:
A) It must be a qualifying first delivery
The exemption is for the first delivery by the builder or developer of a ready residence or workplace. A normal resale between private owners does not qualify. :contentReference[oaicite:11]{index=11}
B) Payment must be brought to Turkey in foreign currency
The guidance states that at least 50 percent of the sale price must be brought to Turkey in foreign currency before the invoice date, and the remaining amount must be brought and paid within 1 year. Payment proof is critical, and bank transfer records are the safest evidence. :contentReference[oaicite:12]{index=12}
C) The property must be held for at least 3 years
Many foreign buyers still hear an old 1 year rule. Current practice guidance reflects a 3 year holding requirement from the title deed registration date. If the property is sold earlier, deferred VAT consequences can arise. :contentReference[oaicite:13]{index=13}
D) Documentation and process control matter
The exemption has procedural requirements for both buyer and seller. If the exemption is applied incorrectly, tax follow-up can affect both sides. This is why the payment plan, invoice timing, and title deed process should be reviewed together, not separately. :contentReference[oaicite:14]{index=14}
VAT Exemption Checklist Before You Sign
- Confirm the property is a first delivery
- Confirm the project's VAT status
- Plan payment timing for the 50 percent before invoice rule
- Use bank transfers and keep SWIFT records
- Confirm you can hold the property for 3 years
- Have your lawyer and accountant review the file before transfer
6) Tax Planning Strategy for Foreign Investors in Alanya
For foreign buyers, tax planning is not just a legal formality. It directly changes your investment result. Two buyers can purchase similar apartments at the same price and still have very different net returns because of:
- VAT exemption eligibility
- Title deed fee allocation
- Rental declaration quality
- Timing of sale relative to the 5 year rule
- Before deposit: confirm title deed fee split, VAT status, and exemption eligibility
- Before transfer: check payment documents, tax numbers, and filing setup
- During ownership: keep clean rental records monthly
- Before sale: run a capital gains tax review with indexation
7) A Short Note on Inheritance Planning
Many foreign buyers plan only the purchase and rental side, but family planning is also important. Even if you do not need a complex structure, you should discuss inheritance and succession planning early with a Turkish lawyer and your home-country advisor. A basic review can prevent delays, title transfer problems, and avoidable costs for your heirs later.
Final Takeaway
Alanya offers foreign investors a relatively attractive tax environment, especially because annual property tax rates are low and the foreign buyer VAT exemption can create major savings when used correctly. But the details matter.
If you want the real net return from your Alanya investment to match your expectations, plan the tax side at the same time you plan the purchase, rental strategy, and exit.
