What is Real Estate Inheritance Tax in Turkey?

Let’s say your relative is a wealthy man/woman who recently passed away. You must have wondered about these assets, and who will receive them. There are will systems for that if the deceased has written his/her will before the ending day. Writing a will basically indicates the requests and desires of the deceased. Let’s say the lucky person is you, you’ve been chosen for the deceased’s estate. It’s not that easy to receive it, as you are obliged to pay tax for that, and this is inheritance tax.

The inheritance tax is a type of tax that has a legal obligation that is integrated with the inheritance law. This Turkish tax uses the class system. Therefore, according to the rating system, heirs have legal rights depending on the degree of closeness (son, wife, husband, uncle, aunt, etc.) to the deceased. Under this type of tax, heirs are required to pay the government to receive the rights of inheritance.

How Inheritance Law Works in Turkey?

In Turkey, it is called inheritance and gift tax and this is a type of tax imposed on the transfer of properties in Turkey to heirs or by grant in the event of a person’s death. We elaborate on the process of inheritance below;

• This tax is imposed on legacy receivers, meaning the heirs. These people are obliged to pay the inheritance tax, therefore they have to apply to the nearest tax office and declare the receiving legacy from a deceased person.
• Legacy receivers are expected to declare the inheritance within 4 months of the date of death. If it’s not declared by the heirs within 4 months, they might get penalties and pay more tax to receive their rights.
• On the tax declaration, the assets of the deceased person are put under investigation and then announced to the tax office. The tax is calculated at different rates depending on the heirs or grantees and is divided according to their shares.
• The inheritance law in Turkey may provide tax exemptions or reductions in certain circumstances. For example, in the case of assets being shared between the wife and kids, there might be some exemptions imposed.
• After the declaration of inheritance, the amount to be paid is announced and then the heirs and grant recipients are expected to pay the tax.

We have compiled a list explaining the steps of inheritance but we kept the most important information to the last. Even if you are a Turkish citizen, a foreign investor, or a foreign resident, in terms of tax rates and rights you are all equal in the eyes of Turkish laws. Therefore you can inherit or leave a legacy to your loved ones.

Who Can Leave a Legacy in Turkey?

First of all, it would be wise to say who is eligible to leave a legacy. In Turkey, the people who have the right to make a will or leave a legacy are;

• People who are 18 and older.
• Individuals with personal rights under the civil code
• Married couples
• In the case of a family; kids wife, husband, grandparents, or grandchildren

On the other hand, in the absence of heirs or in the event of a failure to share the inheritance among the heirs, the inheritance may be transferred to public institutions.

Who Can Inherit My Property in Turkey?

When leaving an inheritance, the legal status of the heirs is one of the most important factors to consider. To answer the question you may have had at the beginning, yes, you can leave an inheritance to people who are not your relatives with blood. However, you must mention this in your will, otherwise (unless you have a relative by blood) your properties in Turkey can be donated to a foundation chosen by the state. The following list contains who you can bequeath your inheritance to.

• Children and significant other: Many countries, including Turkey, make legally married spouses and children heirs in the event of the legator’s death. This means that you can bequeath your home to your spouse and children.
• Grandchildren and other lineage relatives: Heirs can be the children of your unmarried children (grandchildren), your siblings, and other close relatives.
• Parents: In some countries, your parents may also be entitled to inherit, and you may choose to leave your home to them. 
• Charities or Foundations: If you do not have close relatives you have named as heirs, or if you otherwise do not wish to leave an inheritance, you can leave your home to charities or foundations.

It should be noted that inheritance is passed through the execution of a legally valid will. Therefore, if you have registered assets, it is in your best interest to make a will after a certain age to avoid potential legal problems.

How Much Inheritance Tax Will I Pay in Turkey?

Inheritance and inheritance tax varies according to the blood relation of the heirs to the inheritor.

In 2023, the inheritance tax tariff is as follows (assets given to blood relatives after the legator’s passing):

• %1 is applied for the legacies up to 1.100,000 TL
• %3 is applied for the legacies exceeding 2,600,000 TL
• %5 is applied for the legacies exceeding 5,500,000 TL
• %7 is applied for the legacies exceeding 10,900,000 TL
• %10 is applied for the legacies exceeding 20,100,0000 TL 

In 2023, the gift tax tariff is as follows (assets given as gifts):

• %10 is applied for gifts up to 1.100,000 TL
• %15 is applied for gifts exceeding 2,600,000 TL
• %20 is applied for gifts exceeding 5,500,000 TL
• %25 is applied for gifts exceeding 10,900,000 TL
• %30 is applied for gifts exceeding 20,100,0000 TL 

Inheritance and gift tax declaration is submitted to the relevant tax office within 4 months from the date of death of the legator.

How to Write a Will in Turkey?

Under Turkish civil law, a formal will is made in the presence of an official (judge, notary, or authorized official) with two witnesses. The most common method is to go to the nearest notary and apply for a will. The legator informs the official of his/her wishes. The official writes the will and gives it to the legator to read after it is finished. The legator then signs and approves the paper. Witnesses also confirm that they have witnessed the will being written and the process is completed.