Turkey to implement new real estate tax penalties and secure payment system

Turkey is introducing significant changes to real estate transactions to prevent tax evasion and fraud. Under a law effective December 19, 2025, the tax loss penalty for underreporting property sale prices at the land registry has increased from 25 percent to 100 percent. This means if the actual sale price is found to be higher than the declared amount, authorities may apply a penalty equal to the missing fee in addition to the unpaid tax.

Furthermore, the Ministry of Trade is developing a Secure Payment System, which is planned to become mandatory by December 1, 2026. This system aims to synchronize the transfer of property ownership with the transfer of funds. By integrating with banks, the system intends to eliminate risks where buyers pay without receiving the title or sellers transfer ownership without receiving payment. The technical infrastructure is being coordinated between the Ministry of Trade and the General Directorate of Land Registry and Cadastre.