This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at Veraset ve İntikal Vergisi: Beyan Süresi, Oranlar ve Ödeme.
The inheritance and transfer tax declaration is filed within four months of the death where the death occurred in Turkey and the heirs are in Turkey. The tax is calculated on a progressive scale after the statutory exemptions, and paid over three years in six instalments, each May and November.
People acquiring property by inheritance or without consideration are taxpayers under the Inheritance and Transfer Tax Act No. 7338. It is one of the obligations heirs overlook most often — and non-payment does more than attract interest: it prevents the inherited property being registered in the heirs' names. Without the tax clearance certificate from the tax office, no land registry transaction can be completed.
Who Is Liable
Natural and legal persons acquiring property by inheritance or without consideration are liable. There are two situations:
- Transfer on death: the estate passing to the heirs.
- Transfer without consideration: gifts and similar gratuitous dispositions.
The rates differ between the two, and are markedly higher for gratuitous transfers.
The Declaration Deadline
- Death in Turkey and the taxpayer in Turkey: four months from the death;
- Death in Turkey and the taxpayer abroad: six months;
- Death abroad and the taxpayer in Turkey: six months.
The declaration is filed with the tax office for the deceased's last place of residence. Late filing attracts an irregularity penalty and may give rise to a tax loss assessment.
The declaration must list in full the deceased's immovable property, bank accounts, vehicles, company shares and any debts. Debts and funeral expenses are deductible from the base.
| Situation | Period |
|---|---|
| Death in Turkey, heirs in Turkey | 4 months |
| Death in Turkey, heirs abroad | 6 months |
| Death abroad, heirs in Turkey | 6 months |
| Death abroad, heirs in the same country | 6 months |
| Death abroad, heirs in another country | 8 months |
| Declaration of presumed death | 1 month from registration of the decision |
Payment is spread over three years in six equal instalments, each May and November. The exemption amounts are revalued annually.
The Exemptions
The Act exempts part of the inheritance, and the amount varies with the heir's relationship to the deceased:
- An exemption applies to each descendant (children, grandchildren), adopted children included, and to the spouse.
- Where the spouse inherits alone, with no descendants, a higher exemption applies.
These figures are revalued each year, so the declaration must use the exemption in force for the year of the death. The current figures are published by the Revenue Administration.
Where an heir's share falls below the exemption, no tax arises — but the obligation to file the declaration remains. The commonest mistake is not filing on the assumption that no tax is due.
The Rates
The tax is calculated on a progressive scale; the rate rises as the base grows.
- On transfers by inheritance, the rate rises in bands from the lowest to the highest.
- On gratuitous transfers, the rates are markedly higher.
For gratuitous transfers from parents to children, the tax is calculated at half the rates in the applicable scale.
The band thresholds are also updated annually, so the calculation must use the scale for the year of the death.
Paying the Tax
The most useful feature of this tax is its payment schedule. The assessed tax is paid over three years, in six equal instalments, each May and November.
The purpose is to allow heirs to pay without having to sell the property. Late instalments attract a surcharge.
The Tax Clearance Certificate
To register inherited property in the heirs' names, a tax clearance certificate from the tax office must be produced to the land registry. Transferring bank accounts to the heirs depends on the same document.
It is issued once the declaration has been filed and the assessed tax paid or secured.
In practice, heirs discover this only when they try to sell. Filing the declaration on time is what keeps a later sale or transfer from stalling.
Even where your share falls below the exemption and no tax arises, the obligation to file remains. Without a declaration there is an irregularity penalty, and no tax clearance certificate — so the title cannot be transferred.
Frequently Asked Questions
When is inheritance tax paid?
Over three years in six equal instalments, each May and November, so that heirs need not sell the property to pay.
What if I do not file?
An irregularity penalty applies and a tax loss assessment may follow. Without a tax clearance certificate, neither the title nor the bank accounts can be transferred.
Do I pay if I disclaim the inheritance?
A person who disclaims properly and in time ceases to be an heir and is not liable. The period for disclaimer is three months from learning of the death and of your status as heir.
Is a lifetime gift more advantageous?
Usually not. Rates on gratuitous transfers are markedly higher, though gifts from parents to children are taxed at half the scale. Which route suits depends on the circumstances.
What is the deadline where the heirs are abroad?
Six months where the death was in Turkey and the heirs abroad, or where the death was abroad and the heirs in Turkey; eight months where both are abroad in different countries.