Risks of Under-declaring Property Value in Türkiye's Title Deed Transactions

Declaring the actual transaction amount is essential when purchasing real estate in Türkiye. Under-declaring the property value to lower transaction costs can result in the retroactive collection of missing fees along with financial penalties. Additionally, it can make it difficult to document your true purchase cost during a future sale. In this article, we explain which payments must be kept separate and what to verify prior to signing.

Which Value Should Be Declared in Title Deed Transactions?

The value used to calculate the title deed fee cannot be lower than the property's tax value determined by the municipality. However, this minimum threshold does not permit declaring a lower amount when the actual sale price is higher. Both parties are required to declare the true transfer and acquisition price of the property. [1]

In a standard sale, the title deed fee rate is 2% for the buyer and 2% for the seller, totaling 4%. This percentage applies strictly to the title deed fee and does not cover overall transaction expenses. Other payments are calculated separately. It is also important to check whether any special exemptions apply. [1, 2]

What Happens If an Under-declared Value Is Detected?

If it is determined after registration that the declared value does not reflect the actual price, the unpaid portion of the fee will be assessed retroactively. Article 63 of the Fees Law provides for a tax loss penalty equal to one times the amount of the uncollected fee. Law No. 7566 adjusted this penalty rate from the previous 25% to one times the missing amount as of December 19, 2025. The penalty is calculated based on the uncollected fee, not on the total property price. [1, 3]

For example, for a property with an actual value of 8 million TRY, the total 4% title deed fee is 320,000 TRY. If the declared value is 5 million TRY, the fee calculated is 200,000 TRY. The 120,000 TRY difference represents an unpaid amount rather than a legal discount. This is a hypothetical example for a standard transaction with no special exemptions. The final tax assessment and reconciliation process depend on the specific circumstances of the case.

Why Is the Purchase Price Important for Future Sales?

If an individual sells a property acquired for consideration within five years, it may generate taxable capital gains. However, tax is not automatically calculated on the entire difference between the purchase and sale prices. The documented acquisition cost, deductible expenses, indexation, and any applicable exemptions are taken into account. [4]

For the acquisition cost to be indexed according to the Domestic Producer Price Index (D-PPI), the increase in the relevant index must be at least 10%. For capital gains realized in 2026, the annual exemption threshold is 150,000 TRY. This amount is an exemption applied to the taxable gain rather than a reduction in the property price. [4, 5]

As a general rule, a single sale of personal real estate after five years falls outside this tax framework. However, regular real estate transactions may be classified as commercial activity. Different provisions apply to corporate entities, properties acquired without consideration, and specific types of acquisition. Foreign owners should also verify their tax declaration status based on their tax residency situation. [4]

If a lower value was declared in the initial documents, proving actual purchase expenses later can prove more difficult. For this reason, all financial records relating to the property should be kept from the date of purchase. Which expenses are accepted in the calculation depends on the documentation and the specific situation.

What Should Be Checked Before Signing?

• Compare the actual sale price with the value planned to be declared at the title deed office.
• Obtain the municipal property tax value and request separate calculations for the title deed fee and other expenses.
• Put the payment description and payment schedule in writing; keep contracts, bank transfer receipts, and transaction records.
• If it is suggested to show one price on official documents and pay a portion separately, consult an independent expert before proceeding.
• If you plan to sell within five years, evaluate future sale scenarios with a qualified tax advisor in Türkiye prior to purchase.

When selecting property through Reptur, consider the documented purchase price and ownership costs alongside the listing price. Consult a qualified advisor in Türkiye for tax calculations specific to your transaction.

This content is provided for general informational purposes only and does not constitute personalized legal or tax advice. Applicable exemptions, acquisition dates, and liability amounts depend on individual transaction circumstances.

Official Sources

Sources verified on October 23, 2026. Numbers in the text correspond to the list below. All links belong to official Turkish authorities.

1. Revenue Administration — Law No. 492 on Fees
Article 63: fee assessment base, retroactive assessment, and penalties. Schedule (4), Section I/20(a): rate applied to real estate transfers for consideration.
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2. General Directorate of Land Registry and Cadastre — Title Deed Transaction Guide
SALE section: 20 per thousand title deed fee separately for buyer and seller, plus revolving fund fee. Rates cross-referenced with Law No. 492.
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3. Revenue Administration — Law No. 7566
Article 6: Amendment to penalty rates under Article 63 of Law No. 492. Publication date in the Official Gazette: December 19, 2025.
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4. Revenue Administration — Disposal of Real Estate Within Five Years
2026 guide: distinction between commercial gains and capital gains, five-year period, indexation, expenses, and declaration. 2025 examples in the guide should not be confused with amounts and rates applicable to 2026 income.
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5. Revenue Administration — Other Gains and Earnings
Capital gains section: 150,000 TRY exemption limit for 2026 income.
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