If you are deciding between a sale and a gift within the family, the key difference is this: a sale triggers the title deed transfer fee of 4%, whereas a gift triggers the inheritance and gift tax with progressive rates, plus standard land registry service charges. Both routes are lawful and processed by the Land Registry, but their tax bases, rates, and filing obligations differ. For decisions with financial impact, seek advice from a licensed Turkish attorney or tax advisor for your specific case.
Legal basis and competent authorities
Real estate transfers in Turkey are registered by the General Directorate of Land Registry and Cadastre (Tapu ve Kadastro Genel Müdürlüğü, TKGM). Transfers concluded as a sale are subject to the title deed fee governed by Law No. 492 on Fees (Harçlar Kanunu), Tariff (4), which sets a total of 4% on the declared transfer value, customarily split 2% buyer and 2% seller unless the parties agree otherwise in practice at registration [1][4]. Transfers executed as a gift (donation; hibe/bağış) are subject to the Inheritance and Gift Tax Law No. 7338 (Veraset ve İntikal Vergisi Kanunu), administered by the Turkish Revenue Administration (Gelir İdaresi Başkanlığı, GİB) [2]. Since 2023, certain real estate sales may also be concluded before notaries under amendments to the Notary Law, with registration subsequently completed at TKGM; notarial service fees apply in that route in addition to the legal taxes and registry charges [5]. In all cases, TKGM collects its revolving fund service fee (döner sermaye) according to the annually published tariff, separate from taxes [6].
Taxes and fees when the transfer is a sale between family members
A sale between family members is taxed the same as any arm’s-length sale under Law No. 492. The title deed transfer fee is 4% of the declared transfer value, typically borne 2% by the buyer and 2% by the seller at registration, unless the parties privately reallocate the cost. The law imposes the fee on both sides of the transfer; the total burden remains 4% of the base recorded at the Land Registry [1][4]. The declared value for deed fee purposes cannot be lower than the property’s municipal real estate tax value (emlak vergi değeri) recorded for that year at the relevant municipality; TKGM requires the deed value to meet at least this threshold when processing a sale [4]. In addition to the 4% title deed fee, TKGM charges a revolving fund service fee per its annual tariff schedule; this is a fixed amount per transaction and is independent of the sale price [6]. If the sale is executed via a notary under the 2023 reform, notarial fees and payments specified by the Notaries Union tariff are also due; these are separate from taxes and registry charges, and the property must still be registered at TKGM to complete the transfer of title [5]. Stamp tax does not apply to the title deed itself when the transfer is perfected at the Land Registry under the legal form prescribed for real estate conveyances; the fee regime for the transfer is governed by Law No. 492’s title deed fee rather than general stamp duty [1].
Taxes and fees when the transfer is a gift (donation) between family members
A transfer completed as a gift without consideration is subject to the Inheritance and Gift Tax Law No. 7338. Under this law, gifts are taxed at progressive rates that, according to the Revenue Administration’s 2024 tables, range from 10% to 30% after applying the annually updated exemptions and brackets determined by the revaluation procedure [2][3]. The taxable event for a domestic gift occurs on the date of the donation; the recipient must file a gift tax return with the tax office within one month of the date on which the property is legally acquired by donation, and the tax is assessed accordingly [2][3]. Payment is made in two installments each year, typically in May and November, across the legally prescribed period set by the Revenue Administration for inheritance and gift tax collections in that year [3]. In addition to the gift tax, standard land registry service charges apply when registering the donation at TKGM under the relevant transaction type; these are the revolving fund fees published annually and are separate from any tax assessed by the Revenue Administration [6]. Unlike a sale, the 4% title deed transfer fee governed by Law No. 492 applies to sales and similar transfers recorded on a value basis; in a donation processed as a gift under Law No. 7338, the tax burden arises under the gift tax regime, and registration involves the applicable TKGM service charge schedule rather than the sale-based deed fee [1][2][6]. The Revenue Administration’s annual announcement sets the exact bracket thresholds and exemptions for the year; these amounts are indexed and change annually, so the current-year table should be checked before proceeding [3].
Valuation, documentation, and compliance points to watch
Whether you choose a sale or a gift, accurate valuation and timely filings are critical compliance points. For sales, the declared deed value must not be below the municipal real estate tax value for that calendar year; TKGM verifies this minimum when collecting the 4% title deed fee at registration, and under-declaration can lead to reassessment and penalties by the tax office based on audit findings [4]. For gifts, the taxable base is determined under the Inheritance and Gift Tax Law using the value attributable to the property at the time of donation, and the recipient must submit the gift tax return within the one-month statutory period; delays can trigger late filing interest and penalties under the tax procedure rules administered by GİB [2][3]. Procedurally, both sales and gifts of real property must be completed either at the Land Registry (with an official deed) or, for authorized cases, through a notary with subsequent registry entry; private contracts alone do not transfer real estate ownership in Turkey. The Land Registry will require identity documents, a recent property tax value certificate from the municipality, and, if acting through a representative, a properly issued power of attorney (vekaletname) in compliance with Turkish law [4][6]. Because tax rates, exemptions, and fixed service charges are updated annually, it is essential to confirm the current-year schedules with the Revenue Administration and TKGM before initiating the transaction. For family planning, estate, or cross-border situations, obtain tailored advice from a licensed Turkish lawyer and tax professional.
Summary
A family sale is governed by the title deed fee regime: 4% on the declared deed value, plus the Land Registry’s revolving fund fee and, where applicable, notary service charges. A family gift is governed by the inheritance and gift tax regime, with 2024 rates between 10% and 30% applied to the taxable base after current exemptions, plus the Land Registry’s revolving fund fee for registration. The legal routes, tax authorities, filing deadlines, and compliance checks differ, so verifying the current-year rates and completing the correct filings is essential. For a decision aligned with your circumstances and to avoid penalties, engage a licensed professional before you choose the transfer method.
Related Questions:
– Q2 (How is property value determined for tax purposes at the Land Registry in Turkey?)
– Q3 (What documents are required to register a property transfer at the Turkish Land Registry?)
– Q4 (How does inheritance of real estate work in Turkey for spouses and children?)
– Q5 (Can Turkish real estate sales be completed at a notary, and what fees apply?)
References:
[1] Resmi Gazete (Official Gazette). “Law No. 492 on Fees (Harçlar Kanunu), Tariff (4) – Title Deed and Cadastre Fees.” https://www.mevzuat.gov.tr
[2] Gelir İdaresi Başkanlığı (Revenue Administration). “Law No. 7338 on Inheritance and Gift Tax (Veraset ve İntikal Vergisi Kanunu) – Consolidated Text.” https://www.gib.gov.tr
[3] Gelir İdaresi Başkanlığı (Revenue Administration). “2024 Inheritance and Gift Tax Rates and Exemptions (Veraset ve İntikal Vergisi 2024 Tutarları).” https://www.gib.gov.tr
[4] Tapu ve Kadastro Genel Müdürlüğü (General Directorate of Land Registry and Cadastre). “Real Estate Sales and Fee Information (Satış İşlemleri ve Harç Bilgileri).” https://www.tkgm.gov.tr
[5] Resmi Gazete (Official Gazette). “Law No. 7445 – Amendments Enabling Real Estate Sales at Notaries.” https://www.resmigazete.gov.tr
[6] Tapu ve Kadastro Genel Müdürlüğü Döner Sermaye İşletmesi. “Annual Revolving Fund Fee Tariff.” https://www.tkgm.gov.tr
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice. Property law and tax rules in Turkey change frequently. Consult a licensed Turkish lawyer, accountant, or real estate professional before making any purchasing decision.