Are You Paying Your Debts? Why Tax and SGK Obligations Matter in Turkey
🚨🚨🚨Ignoring your financial obligations in Turkey can stop your property sale, freeze your vehicle, and block your access to healthcare.
Ignorance Is No Excuse in Turkish Law
Many foreign residents and investors in Turkey focus on visa renewals, property purchases, and setting up businesses — but often overlook a crucial aspect of legal life in Turkey: ongoing tax and SGK obligations.
Failing to meet your basic fiscal responsibilities may lead to:
Hefty penalties
Delays or denials in selling real estate or vehicles
Health insurance suspensions
In some cases, complications in residence permit renewals
This guide explains:
What taxes you're responsible for as a property or vehicle owner
What happens if you don’t pay
How unpaid social security (SGK) affects your healthcare rights
Best practices to stay compliant and avoid costly mistakes
II. Emlak Vergisi (Property Tax): More Than Just a Number
Every property owner in Turkey, including foreigners, is legally required to pay Property Tax (Emlak Vergisi) to the local municipality (belediye).
🔹 When Is It Due?
Paid twice a year:
1st installment: March 1–May 31
2nd installment: November 1–30
🔹 How Much Is It?
Based on the declared property value, location, and usage
Rates range from:
0.1% for residential
0.2% for commercial
+100% if located in a metropolitan municipality like Istanbul
📌 Example: A ₺2,000,000 apartment in Istanbul → ~₺4,000 annual tax
III. What Happens If You Don’t Pay Property Tax?
Monthly penalty of 2.5% on the outstanding amount
Accumulated interest and legal enforcement
You cannot sell or transfer the property until the debt is cleared
📌 Real Example:
Many foreign property owners have faced title deed office rejections during property sales due to unpaid taxes. Even if all paperwork is ready, your Tapu transfer is frozen until full payment — including fines — is made.
IV. Motorlu Taşıtlar Vergisi (MTV) – Vehicle Tax
If you own a car, motorcycle, van, or boat in Turkey, you must pay the Vehicle Tax (MTV) annually.
🔹 Payment Schedule:
1st installment: January 1–31
2nd installment: July 1–31
📌 You can pay via banks, e-Devlet, or the GİB website.
🔹 Amounts:
Based on:
Engine size
Vehicle age
Tax band assigned to vehicle type
V. What If You Don’t Pay Vehicle Tax?
Your vehicle cannot be sold
During inspection (TÜVTÜRK), you may be fined
Police may seize or block your vehicle
Interest accumulates monthly
Your traffic insurance and registration may be blocked
VI. Other Tax Liabilities: Income, Rent, Capital Gains
🔹 If You Earn Income in Turkey:
Freelancing, real estate rental, business ownership → must declare and pay income tax
🔹 If You Sell Property:
You may owe capital gains tax if sold within 5 years
Non-payment may result in blockage at notary and penalties
📌 Failure to settle these may block your visa renewal or citizenship application
VII. SGK Premiums: Health Access Depends on Payment
If you are:
Self-employed
Company owner
Voluntarily insured as a foreigner
you must pay monthly SGK premiums.
💡 What’s the Risk of Not Paying?
Your public health insurance is suspended
You lose free access to state hospitals
You must pay out-of-pocket for all medical care
Debts may be transferred to tax office for collection
May affect your residence permit renewal under Law 6458
VIII. Can I Ignore Small Debts as a Foreigner?
No. Turkish authorities are now:
Digitally syncing e-Devlet, GİB, and Tapu systems
Sharing data with migration offices and tax enforcement
Denying transactions (e.g. sales, inheritance, vehicle transfers) for those with debts
Even a small unpaid bill can delay or derail major life events like selling a home or renewing a visa.
IX. Best Practices to Stay Compliant
☑️ Set up e-Devlet notifications and SMS alerts
☑️ Monitor GİB (https://www.gib.gov.tr) and your municipal tax records
☑️ Pay taxes early to avoid late system glitches
☑️ Keep receipts and declarations in both printed and digital form
☑️ Consult an accountant or attorney before selling property or vehicles
X. Frequently Asked Questions
❓ Can unpaid taxes block my ikamet (residence permit)?
Yes — if you appear on the tax debtor registry, it may delay or deny renewal.
❓ I didn’t know I had debt. Can I get it waived?
Ignorance is not a defense. But you can apply for installments (taksitlendirme) or amnesty (vergi yapılandırma) during campaign periods.
❓ Can I sell my car if there’s an unpaid fine?
No — the notary office and traffic registration will block the transfer.
XI. Final Thoughts: Small Debts Can Create Big Problems
In Turkey, even a ₺1,000 unpaid tax can block a ₺10,000,000 property sale.
As a foreign national, the risks are even greater because:
You may not be notified in your native language
E-Devlet usage may be limited
Transactions can be denied without warning
📌 Need Help Managing Your Taxes and SGK?
At Ensari Yiğitcan Çakmak Law Office, we offer:
Tax review and declaration support
SGK compliance and voluntary coverage setup
Legal advice before property or vehicle sales
Help resolving blocked transactions due to debts
📞 Your freedom to sell, transfer, and stay in Turkey depends on staying debt-free. Let us help.
🌐 www.ensariyigitcancakmak.av.tr
📧 info@ensariyigitcancakmak.av.tr
📱 +90 533 194 52 14
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