When you buy a home in Turkey from a VAT-registered seller — a developer (müteahhit), a company, or a sole trader continuously dealing in real estate — you, the buyer, pay the VAT (KDV, Turkey's value added tax); the seller adds the tax to the price and remits it to the treasury through their own tax return. A private individual selling their own home has no right to charge this tax, because VAT only arises on transfers made within a commercial business structure. On a newly built home, the rate is set by net floor area: 1% up to 150 m², and 20% above that threshold.
At the tapu (title deed) office, two concepts get mixed up time and again: VAT is a tax added on top of the sale price, while the tapu harcı (title deed fee) is a separate charge levied under its own rules. As the buyer, you need to budget for both separately. I've pinned down each type of sale one by one, because the rate runs completely differently for an apartment than for a field.
Who pays VAT on a home sale, and which sales are VAT-free?
The economic burden always falls on the buyer; the seller merely stands as an intermediary before the state. The tax is added to the sale price, collected from the buyer, then declared and paid by the seller. For VAT to arise in the first place, the sale must be made within a commercial structure — in other words, the seller must be VAT-registered.
So in which sales does this tax never come up? According to the GİB's (Gelir İdaresi Başkanlığı, the Turkish Revenue Administration) guidance on the tax responsibilities attached to real estate transfers, the main ones are these:
- A private individual selling their own home or building plot as a one-off, with no continuous buying-and-selling activity
- Every subsequent sale of a home after its first transfer — even if the seller is a company
- Sales of building plots (arsa) outside metropolitan municipality boundaries and adjacent areas (mücavir alan)
- Transfers of agricultural land such as fields, vineyards and orchards
The second item is the one that surprises people most. Even a company cannot charge VAT when it sells a home on its books; the housing exemption is breached only by the first transfer of a newly built home and by sales of building plots inside metropolitan areas.
What is the VAT rate when buying a new home from a developer?
For homes with a net area of up to 150 m², the rate is 1%; for homes above the threshold, it is 20%. This framework has been in force since the start of 2014 and still stands, as the same table, in the GİB's VAT rates guide. The critical detail is this: if the threshold is exceeded, it is not just the extra square metres — the entire sale price is tied to the 20% rate.
On top of that come the periodic maneuvers. From October 2022, a temporary 10% rate came into play for deliveries of homes over 150 m², and the arrangement has been extended several times; its scope and end date can be changed by decree. Checking the rate in force on the day of sale against the GİB's current VAT rates guide is far more reliable than a developer's verbal “price excluding VAT”.
As for listing prices... Always get written confirmation of whether the figure you see on platforms like SahibindenSat includes VAT or not. On a 6 million TL apartment, the gap between 1% and 20% is a burden of more than 1 million liras.
How is the 150 m² net area threshold calculated?
The calculation looks at net area, not gross. Gross square metres cover the bağımsız bölüm (the self-contained unit registered on the deed) plus its share of the common areas; to get down to the net figure, you deduct wall thicknesses and communal spaces such as stairwells, elevator and utility shafts. An apartment with 170 m² gross typically drops to a net of 135–145 m², depending on the project. So a flat that seems to breach the threshold on a gross basis can still sit in the 1% bracket for tax purposes.
Details like how balconies are counted leave room for interpretation and have at times become the subject of an özelge (a written ruling from the tax authority). The cleanest move is to ask the developer for the net square metres in writing. If the net area hovers between 148 and 153 m², have a mali müşavir (certified accountant) confirm it; the five square metres straddling the line are the most expensive ones a buyer can end up paying for.
Let me make it concrete with an example. Ebru buys an apartment from a developer — 170 m² gross, 142 m² net — for 6,000,000 TL (excluding VAT). The net area is below the threshold; 1% applies, and the VAT comes to 60,000 TL. In the same project, a penthouse with 152 m² net falls under the 20% rate: 1,200,000 TL on the full price. That 10 m² net difference between the two apartments creates a tax gap of 1,140,000 TL between the buyers.
Is VAT charged on second-hand home sales?
No. The VAT Law (KDV Kanunu) exempts transfers of homes, and withdraws that exemption only for the first transfer of a newly built home and for sales of building plots inside metropolitan areas. Once your apartment has been registered at the land registry even once, there is no VAT on its second or third sale — and that does not change whether the seller is a company, a bank, or a contractor under a kat karşılığı (construction-in-exchange-for-flats) arrangement.
But the exemption protects only the home itself, not the services around it. An estate agent's brokerage is a separate service, and VAT is added to the commission. One more thing: a developer who takes over a half-finished building, completes it and sells it can be treated as making a first transfer under the tax legislation. If you see an unexpected VAT line in the deed price, ask the seller why; if the answer is not convincing, take the matter to a certified accountant.
What is the VAT rate on commercial property sales?
It is 20%, and the residential exemption does not cover commercial premises. A developer's delivery of a shop, office or workshop and a company's sale of its old office are both tied to the same rate. This is the most expensive difference between a home and a workplace; do not go looking for a second-hand exemption on commercial property.
The exemption can only be sought on the seller's side. If a private individual sells their shop as a one-off, they are not VAT-registered because there is no continuous activity, and no tax arises. If the same shop is sold by a limited company, it calculates 20% and reflects it in the price; the picture is the same for a trader dealing in the buying and selling of shops.
How does VAT work on sales of building plots and farmland?
The critical variable is whether the property lies within metropolitan municipality boundaries and adjacent areas (mücavir alan). Since the beginning of 2017, sales of building plots inside these boundaries have been pulled out of the exemption; if the seller is VAT-registered, the rate is 20%. Who counts as registered? Private individuals continuously dealing in plots, developers, and all companies. If you are buying a parcel from a land trader in Istanbul, expect 20% VAT to land on top of the price.
Plots outside metropolitan areas stay within the exemption; even if the seller is registered, no VAT arises. In sales of fields, vineyards and orchards the tax generally does not come up either; under GİB practice, agricultural land of this kind is in most cases not treated as a building plot. Still, watch out: the parcel's zoning status may have changed and its farmland designation may have been lifted. Do not sign before confirming the designation in the land registry record and the property's status on the day of sale.
The exemption on companies' property sales: don't confuse it with VAT
The corporate exemption doing the rounds is a kurumlar vergisi (corporate tax) exemption, not a VAT exemption. Under Article 5 of the Corporate Tax Law, the gain on the sale of a property held on the balance sheet for at least two years is exempt from tax, provided that 50% of the sale price is transferred to a special fund or kept out of distribution by the end of the accounting period in which the sale was made. If the condition is broken, the exemption is clawed back with late-payment interest.
The VAT side, meanwhile, is resolved separately according to the type of property: second-hand homes stay within the exemption, commercial premises go into the 20% bracket, and plots inside metropolitan areas go into the 20% bracket. The GİB's 2026 guide on the exemption for gains from companies' sales of real estate, businesses and equity stakes (Kurumların Taşınmaz, İşletme ve İştirak Hissesi Satış Kazancı İstisnası Rehberi) walks through the conditions, time limits and disqualifying events with examples. If there is a property on the company's balance sheet to be sold, building the plan with a YMM (sworn-in certified public accountant) or a mali müşavir well before the deed day is the right step to take.
The rates, thresholds and exemption framework in this article rest on the GİB's published VAT rates guide, its bulletin on the tax responsibilities attached to real estate, and its 2026 guide on the corporate exemption. VAT rates can be changed periodically by Presidential decree; temporary reductions, especially on deliveries of homes and commercial premises, are introduced with specific effective dates. Before heading to the title deed office, always confirm the rate in force on the day of sale from the GİB's current guide or from a certified accountant. This article is general information; for tax decisions, seek professional advice.
Frequently asked questions
Do I pay VAT when buying a second-hand home?
No. Subsequent sales of homes after their first transfer are exempt from VAT; even a corporate seller cannot charge it. The only item to watch is the estate agent's commission; VAT is reflected onto the commission.
Does the 150 m² threshold go by gross or net area?
Net area. Wall thicknesses and communal areas are deducted from the gross square metres. If the net area exceeds 150 m², the entire sale price goes into the 20% bracket — not just the excess portion.
What is the VAT rate on building plot sales?
For plots within metropolitan municipality boundaries and adjacent areas, the rate is 20% if the seller is VAT-registered. Plots outside metropolitan areas, along with fields, vineyards and orchards, fall within the exemption.
Which tax are companies exempt from on property sales?
Corporate tax. The gain on a property held on the balance sheet for at least two years is exempt, provided 50% of the sale price is set aside. VAT, however, is calculated separately according to the type of property.
Are the tapu harcı and VAT the same thing?
No. VAT is a tax added to the sale price and declared by the seller; the tapu harcı (title deed fee) is a separate charge calculated under the fee legislation. One cannot stand in for the other.