Inheritance and Transfer Tax: Property Through Inheritance and Gift

When a property changes hands through inheritance or as a gift (without consideration), the recipient pays inheritance and transfer tax (veraset ve intikal vergisi). The tax is calculated under Law No. 7338.

Transfer through inheritance

• Heirs must file a return within the period set by law from the date of death (generally four months, if the death occurred in Turkey and the heir is in Turkey).
• The property's value is determined according to the criteria set out in the law (generally the property tax value).
• Exemption amounts updated each year apply to a spouse and children; the portion above the exemption is taxed at progressive rates.
• The tax can be paid in installments.

Gift (transfer without consideration)

Transfers without consideration, such as a parent gifting a home to their child, also trigger this tax. The exemption for a gift is much lower than for an inheritance, and the tax rates are higher. This is why a 'gift disguised as a sale' is common, but doing so can lead to claims of a sham transaction (muvazaa) and lawsuits among heirs.

Recording the transfer on the title deed

Heirs apply to the land registry office with the tax office letter confirming the return was filed and the certificate of inheritance, and have the property registered in their names.