Buying in Bodrum: taxes, fees and the VAT exemption for foreign buyers

Buying well in Bodrum starts with knowing the full cost of the transaction, which is refreshingly low by European standards. Here is the complete picture for a foreign buyer in 2026.

At purchase

The title deed fee (tapu harcı) is 4% of the declared sale price, formally split between buyer and seller and in practice usually carried by the buyer. Notary, translation and valuation costs add a low four-figure sum. There is no separate stamp duty on the conveyance itself.

VAT is where foreign buyers get their structural advantage. First purchases of new-build homes are VAT-exempt for buyers who are not Turkish residents, provided the price is paid in foreign currency brought from abroad and the home is held for at least one year. On new builds otherwise carrying up to 18% VAT, the saving is substantial. Resales between individuals carry no VAT in any case.

While you own

Annual property tax runs at 0.1% to 0.2% of cadastral value for homes, doubled in metropolitan municipalities, which includes the Bodrum region. Homes above TRY 17.7 million in assessed value (the 2026 threshold) also attract the valuable housing tax on a progressive scale.

Rental income is taxed on a progressive scale after an annual allowance and deductible costs. This is Turkish-sourced income: the 20-year exemption does not cover it. Well-managed seasonal rentals still net 5 to 8% on the peninsula, which carries the running costs comfortably.

When you sell

The five-year rule is the quiet gift of the Turkish system: sell a property after five full years of ownership and the capital gain is entirely exempt from income tax. Sell earlier and gains above an annual allowance are taxed progressively. For buyers with any long-term intent, the planning conclusion writes itself.

Budget roughly 5 to 6% above the purchase price all-in, use the VAT exemption if you qualify and let the five-year clock run. Few mature markets make the arithmetic this clean.