When a person passes away in Turkey, the transfer of their estate to legal heirs triggers a set of tax obligations that must be fulfilled before the inherited assets can be formally registered in the names of the beneficiaries. The Inheritance and Transfer Tax, governed by Law No. 7338, applies to all assets acquired through inheritance as well as to gratuitous transfers such as gifts and donations made during the lifetime of the transferor. This tax operates on a progressive rate structure, meaning that the applicable percentage increases as the value of the inherited share rises. For individuals with connections to Turkey, whether as residents, property owners, or heirs of a Turkish citizen, understanding the scope of this obligation is essential to avoid penalties, delays in asset transfers, and potential disputes with the tax administration.
Turkish inheritance tax law does not distinguish between Turkish citizens and foreign nationals in terms of tax liability. The determining factor is not the nationality of the heir but rather the location of the assets and the residence of the deceased. Turkish residents are taxed on their worldwide estate, including assets held abroad, while non-residents are taxed only on assets located within Turkey. This territorial principle has significant implications for foreign nationals who own property or hold financial assets in the country.
Scope of the Tax and Taxable Events
The Inheritance and Transfer Tax applies to two broad categories of transfers. The first category covers transfers that occur upon the death of the property owner, encompassing all movable and immovable assets, financial accounts, securities, commercial enterprises, and other items of value that pass to the legal or testamentary heirs. The second category covers gratuitous transfers made during a person’s lifetime, including gifts, donations, and prizes won in competitions, lotteries, and games of chance.
The taxable event in the case of inheritance is the death of the estate owner. From that point forward, the legal heirs become liable for the tax, regardless of whether they have taken physical possession of the inherited assets or completed the registration formalities. In the case of gratuitous transfers, the taxable event occurs at the moment the recipient acquires legal ownership of the transferred asset. The obligation to file a tax return and pay the assessed amount rests with the recipient of the transfer in both cases.
Tax Rates for 2026
The inheritance tax in Turkey is calculated on a progressive scale, with rates varying depending on whether the transfer occurs through inheritance or through a gratuitous act during the transferor’s lifetime. The tax brackets and corresponding rates are adjusted annually based on the revaluation rate published by the Ministry of Treasury and Finance. For the year 2026, the applicable rates were updated by General Communiqué Serial No. 57, published in the Official Gazette on December 31, 2025, reflecting a revaluation increase of 25.49 percent.
For transfers through inheritance, the rates for 2026 are as follows: one percent on the first 3,000,000 Turkish lira of the taxable base, three percent on the next 7,000,000 Turkish lira, five percent on the next 15,000,000 Turkish lira, seven percent on the next 30,000,000 Turkish lira, and ten percent on any amount exceeding 55,000,000 Turkish lira.
For gratuitous transfers, including gifts and donations, the rates are considerably higher: ten percent on the first 3,000,000 Turkish lira, fifteen percent on the next 7,000,000 Turkish lira, twenty percent on the next 15,000,000 Turkish lira, twenty-five percent on the next 30,000,000 Turkish lira, and thirty percent on any amount exceeding 55,000,000 Turkish lira. However, when a gratuitous transfer is made between parents, spouses, and children, the applicable rate is reduced to half of the standard gratuitous transfer rate.
Article 16 of Law No. 7338: The tax tariff bracket amounts are adjusted each year by the revaluation rate determined pursuant to the Tax Procedure Law for the preceding year. Fractions not exceeding five percent of the amounts calculated in this manner are disregarded. The President is authorized to increase or decrease the amounts determined in this way by up to half.
Exemptions and Tax-Free Thresholds
Turkish inheritance tax law provides a number of exemptions that reduce the taxable base for qualifying heirs. For the year 2026, the most significant exemptions are as follows. Each descendant and the surviving spouse is entitled to an exemption of 2,907,136 Turkish lira on their respective inheritance share. This exemption includes adopted children. If the deceased has no descendants and the surviving spouse is the sole heir, the exemption amount increases to 5,817,845 Turkish lira. For gratuitous transfers that occur during the transferor’s lifetime, an exemption of 66,935 Turkish lira applies.
Beyond these monetary thresholds, certain categories of assets are entirely excluded from the tax base regardless of their value. Household goods and personal belongings of the deceased are exempt from inheritance tax. Family heirlooms such as paintings, swords, and medals preserved for sentimental value are also excluded. Customary gifts given in accordance with tradition, including wedding presents and dowry items, are not subject to tax, although real estate transferred in this manner does not qualify for the exemption.
Additionally, retirement benefits and death gratuities paid to the surviving family members as a result of the death are exempt from the inheritance tax. Transfers to public institutions, charitable foundations recognized as serving the public interest, and certain social security organizations are also excluded from the scope of the tax.
Determining the Taxable Base
The taxable base for inheritance tax purposes is determined by calculating the total value of the assets included in the estate and subtracting allowable deductions. The valuation of assets follows the principles established in the Tax Procedure Law. Real estate is valued based on the property tax assessment value declared to the relevant municipality. Financial accounts and securities are valued at their balance or market value on the date of death. Commercial enterprises maintained on a balance sheet basis are valued according to the net equity reflected in the balance sheet prepared as of the date of death.
Certain debts and expenses may be deducted from the gross estate value to arrive at the net taxable base. In the case of inheritance, the documented debts of the deceased, including outstanding tax obligations, are deductible. Funeral expenses, costs of publishing legally required notices, and court fees related to the issuance of the certificate of inheritance are also deductible. For assets located abroad belonging to Turkish citizens, any inheritance tax paid in a foreign jurisdiction on those assets may be credited against the Turkish inheritance tax liability, preventing double taxation.
Filing Obligations and Deadlines
Heirs are required to file an inheritance tax return with the tax office at the location of the deceased’s last place of residence in Turkey. The filing deadline depends on where the death occurred and where the heirs are located. If both the death and the heirs’ residence are in Turkey, the return must be filed within four months of the date of death. If the death occurred in Turkey but the heirs reside abroad, the deadline extends to six months. If the death occurred abroad and the heirs are in Turkey, the deadline is also six months. If the death occurred abroad and the heirs are located in a third country other than Turkey, the filing period is eight months.
For gratuitous transfers made during the transferor’s lifetime, the return must be filed within one month of the date on which the recipient legally acquires the transferred asset. Turkish citizens residing abroad may file their returns through the Turkish consulate in their country of residence.
An inheritance tax return must be filed even if the value of the inherited share falls below the applicable exemption threshold. Failure to file within the prescribed period may result in tax loss penalties and late payment interest. The law provides an additional grace period of fifteen days following the expiration of the filing deadline, during which a late return may be submitted without incurring a tax loss penalty. If the return is still not filed after this grace period, a further fifteen-day extension may be granted upon notification to the taxpayer.
Payment Schedule and Tax Clearance
The assessed inheritance tax is payable in six equal installments over a period of three years. The installments fall due in May and November of each year, beginning in the year in which the return is filed. This installment arrangement is a statutory right and applies automatically without any additional application. No interest is charged on the installment payments as long as they are made on time. However, late payment of any installment results in the imposition of a default interest for each month of delay.
A critical practical consequence of the inheritance tax obligation is the requirement to obtain a tax clearance certificate from the tax office before any disposition of the inherited assets can take place. Without this certificate, the Land Registry will not process the transfer of real estate to the heirs’ names, banks will not release funds held in the deceased’s accounts, and vehicle registration authorities will not complete the re-registration of motor vehicles. The tax clearance certificate is issued only after the full amount of the assessed tax has been paid. In cases where immediate full payment is not possible, the heirs may provide collateral in the form of cash, a bank guarantee letter, or a mortgage on other real estate in order to proceed with certain transactions before the tax is fully settled.
Inheritance Tax Obligations for Foreign Nationals
Foreign nationals who inherit assets located in Turkey are subject to the same inheritance tax rules as Turkish citizens, to the extent that the inherited assets are situated within Turkish territory. This means that a foreign heir who inherits real estate, bank deposits, or other assets in Turkey must file an inheritance tax return with the competent Turkish tax office, pay the assessed tax according to the applicable progressive rates, and obtain a tax clearance certificate before the assets can be transferred.
The applicable tax office for foreign nationals is determined by the last place of residence of the deceased in Turkey. If the deceased had no residence in Turkey or if their last residence cannot be established, the return may be filed at the tax office in the jurisdiction where the inherited assets are located or where the heir resides. Taxes paid on the same assets in a foreign jurisdiction may be credited against the Turkish tax liability under the provisions of the law, provided that proper documentation is submitted.
Inheritance Lawyer in Istanbul – Attorney Ozan Soylu
Attorney Ozan Soylu is a practicing lawyer based in Istanbul, providing legal assistance to Turkish and foreign clients in inheritance and estate matters. His practice covers the preparation of inheritance tax returns, representation before tax authorities, estate planning, and the transfer of inherited real estate and financial assets in Turkey.
For all legal matters concerning Turkish law, you can reach out to Attorney Ozan Soylu. Legal consultancy and representation services are provided with a dedicated approach for foreign nationals. To submit your questions, contact us.
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