Inheritance and Gift Tax in Turkey

Table of contents

1. What is inheritance and gift tax in Turkey?
2. Who is liable to tax?
3. How is the tax base determined?
4. What tax rates apply?
5. What exemptions and allowances exist?
6. What deadlines and procedures must be observed?
7. What rules apply to gifts?
8. How is double taxation regulated?
9. What practical recommendations should be considered?

1. What is inheritance and gift tax in Turkey?

Turkey levies a unified inheritance and gift tax (veraset ve intikal vergisi) covering both acquisitions upon death and gratuitous transfers inter vivos. The legal basis is the Inheritance and Transfer Tax Law (Veraset ve İntikal Vergisi Kanunu, Law No. 7338).

Unlike certain European countries — such as Austria, which abolished inheritance tax in 2008 — Turkey taxes both inheritances and gifts under a single statute, albeit at different rates.

2. Who is liable to tax?

Tax liability attaches to the acquirer (i.e. the heir or donee), not to the deceased or the donor. The following persons are liable to tax:

• Any natural or legal person acquiring assets located in Turkey upon death or by way of gift, regardless of nationality or domicile.
• Turkish nationals who inherit or receive assets located abroad are, in principle, also subject to Turkish inheritance and gift tax; however, taxes paid abroad may be credited against the Turkish tax liability under certain conditions.

Foreign heirs who inherit assets located in Turkey are liable to tax in respect of the estate situated in Turkey. The taxable amount is the net value of the assets acquired, i.e. after deduction of the proportionate share of estate liabilities.

3. How is the tax base determined?

The tax base (matrah) is the fair market value (rayiç bedel) of the assets acquired at the time of acquisition. Valuation depends on the type of asset:

Estate liabilities (debts of the deceased, funeral expenses, costs of estate administration) are deductible from the tax base. The remaining net value constitutes the taxable base for each individual heir.

4. What tax rates apply?

Inheritance and gift tax is levied at progressive rates. The rates differ depending on whether the acquisition is by inheritance or by gift. Gift tax rates are significantly higher than inheritance tax rates.

The tax brackets and thresholds are adjusted annually by the Ministry of Finance in accordance with the general revaluation rates (yeniden değerleme oranı). As of 1 January 2026, the following rates apply:

The tax brackets are published annually in the Official Gazette (Resmî Gazete) and are subject to change.

5. What exemptions and allowances exist?

Allowances (İstisna Tutarları)

The law provides for various tax-free allowances that reduce the taxable acquisition. As of 1 January 2026, the following amounts apply:

The allowances are published annually in the Official Gazette (Resmî Gazete) and are subject to change.

Exemptions

In addition, certain acquisitions are fully exempt from tax, in particular:

• Certain donations to charitable foundations and associations.
• Acquisitions that do not exceed the applicable allowance — however, in the case of acquisitions upon death, the obligation to file a tax return remains even if the value of the inherited assets falls below the allowance. For gifts, by contrast, no filing obligation arises if the acquisition does not exceed the allowance.

Practical Note: Even where the value of the inherited estate falls below the tax-free allowance, a tax return must be filed for acquisitions upon death. Failure to do so may result in penalties. This requirement is frequently overlooked in practice.

6. What deadlines and procedures must be observed?

Tax Return (Beyanname)

Heirs are required to file an inheritance and gift tax return (veraset ve intikal vergisi beyannamesi) with the competent tax office (vergi dairesi). Filing deadlines depend on the place of death and the residence of the heirs (Art. 9, Law No. 7338):

Tax Assessment and Payment

Following review of the return, the tax office issues a tax assessment notice (vergi tahakkuku). Inheritance and gift tax is payable in six equal instalments over a period of three years from the date of assessment, with instalments falling due in May and November of each year.

Tax Clearance Certificate

For the transfer of title in the land registry (tapu devri) and the release of bank deposits, the Turkish authorities regularly require a tax clearance certificate issued by the competent tax authority in the specific proceedings. Without this certificate, the transfer of estate assets is not possible in practice.

Practical Note: Compliance with filing deadlines is of particular importance: late filing results in surcharges and default interest (gecikme zammı) and may significantly delay the entire estate administration process.

7. What rules apply to gifts?

Gifts (ivazsız intikaller / bağışlar) are governed by the same law as acquisitions upon death in Turkey but are subject to significantly higher tax rates (see the rate table above).

The tax liability arises upon execution of the gift. For real estate, this is the date of transfer in the land registry; for movable assets, the date of delivery or transfer. The filing deadline is one month from the date of the gift.

Relevance under inheritance law: Lifetime gifts by the deceased may be subject to an action for reduction (tenkis davası) under Turkish inheritance law if they infringe upon the reserved portions (Pflichtteile) of the statutory heirs (Art. 565 TCC). The tax treatment of the gift and its contestability under inheritance law must be considered separately: even a gift on which tax has been duly paid may be subject to reduction under inheritance law.

Example: A testator donates an apartment in Ankara to his niece and duly pays the gift tax. After his death, it transpires that the gift infringes the reserved portions of his children. The children may file an action for reduction, even though the gift was correctly handled from a tax perspective.

8. How is double taxation regulated?

The question of double taxation is of considerable practical significance in cross-border inheritance cases. The situation for the most important corridors is as follows:

Turkey – Germany

Although a double taxation agreement (DTA) exists between Turkey and Germany, it does not cover inheritance and gift tax. A credit for Turkish inheritance and gift tax paid against German inheritance tax may be available under certain conditions pursuant to Section 21 of the German Inheritance Tax Act (ErbStG) (unilateral credit). The key requirement is that the assets are situated in Turkey and were actually taxed there.

Turkey – Austria

No inheritance tax DTA exists between Turkey and Austria. Since Austria abolished inheritance tax in 2008, the question of double taxation arises in a different form for Austrian heirs: in Austria, real estate transfer tax implications may be relevant where immovable property is involved. A credit for Turkish inheritance and gift tax against Austrian real estate transfer tax is not provided for.

Unilateral Relief Measures

Turkish law provides for a unilateral credit mechanism under Art. 12 of Law No. 7338: inheritance and gift tax paid abroad on the same acquisition may, under certain conditions, be credited against the Turkish tax liability. This requires that the foreign tax was actually paid and can be documented.

9. What practical recommendations should be considered?

Turkish inheritance and gift tax requires early and careful planning. The following recommendations are of particular importance in practice:

• Filing deadlines must be strictly observed. Deadlines vary considerably depending on the residence of the heirs and the place of death (4, 6, or 8 months for inheritances; 1 month for gifts). Late filing results in surcharges and default interest, and delays estate administration.
• Even where the estate value falls below the tax-free allowance, a tax return must be filed for acquisitions upon death. This is frequently overlooked.
• The tax clearance certificate from the competent tax authority is a prerequisite for the transfer of title in the land registry. Without it, immovable property cannot be transferred to the heirs.
• In cross-border inheritance cases, it should be determined at an early stage whether a credit for Turkish inheritance and gift tax is available in the home state.
• Lifetime gifts should be reviewed not only from a tax perspective but also under inheritance law, given the higher gift tax rates and the risk of reduction claims.
• The annual adjustment of allowances and tax brackets requires up-to-date calculations. Planning based on outdated figures may result in unexpected tax demands.
• Close cooperation between the tax advisor in the home state and the Turkish tax advisor is essential in order to optimise the overall tax burden and avoid double taxation to the extent possible.

For individual advice on inheritance and gift tax in Turkey, please do not hesitate to contact our law firm directly.

Our Tax & Legal team provides comprehensive advice on all tax and inheritance law matters relating to Turkey.