Real estate purchase and sale tax is a type of fee collected from both the buyer and the seller during the purchase or sale of a real estate (such as land, plot, residence, workplace). Officially known as the Title Deed Fee, this tax is collected in transfer transactions made at the land registry offices.
Who Pays?
Real estate purchase and sale tax is paid separately by both the buyer and the seller. In other words, the total tax amount is divided in two. However, in some cases, the parties may agree among themselves and one party may pay the entire tax.
What is the Tax Rate?
As of 2025;
- The title deed fee rate is determined as 4% of the sales price.
- 2% is collected from the buyer,
- 2% is collected from the seller.
Example:
In the sale of a 500,000 TL house:
- Buyer 10,000 TL,
- Seller 10,000 TL,
- A total of 20,000 TL title deed fee is paid.
On Which Amount is Tax Calculated?
Tax is calculated on the sales price. However, the sales price must not be below the real estate market value determined by the municipality. If the declared sales price is below the market value, tax is collected on the market value.
Things to Consider
Showing a low price on the title deed may result in penal sanctions.
- Both late payment interest and tax penalties may be applied for underpaid taxes.
- For houses purchased with a loan, the bank appraisal value is also important.
Conclusion
Real estate purchase and sale tax is a legal obligation in the purchase and sale of real estate. Accurate declarations must be made during the transaction and taxes must be paid on time. Otherwise, penalties may be encountered in the future. It is important for both the buyer and the seller to consider these costs before starting the title deed transactions.
