Understanding Stamp Duty: When and How Much You Need to Pay

Relocating to a new country offers fresh opportunities, but it also brings complex bureaucratic hurdles. For expats settling in Türkiye, understanding the financial responsibilities tied to daily life is vital. One area that often goes unnoticed—yet can significantly affect your budget—is stamp duty. Whether you’re renting an apartment in Istanbul or signing a business agreement in Izmir, stamp duty can apply in more situations than expected. This guide helps you identify when you must pay stamp duty in Türkiye, how much it could cost, and how to stay compliant.

What Is Stamp Duty in Türkiye?

Stamp duty, known locally as “damga vergisi,” is a form of tax applied to official documents in Türkiye. It serves to formalize and register commercial or legal agreements between parties. Once a document is stamped and duty is paid, it holds legal and fiscal authenticity under Turkish law.

• Mandatory for a wide range of documents
• Calculated as a percentage of the deal’s value or as a fixed fee depending on the document type
• Applicable in both personal and professional transactions

For expats, confusion may arise due to the diversity of document types and the changing percentages. Being able to distinguish which documents require stamp duty protects you from possible penalties or delays in your residency procedures or business activities.

Documents That Commonly Require Stamp Duty

As an expat, you’ll likely encounter several situations where stamp duty is mandatory. Below are the most common documents that involve this cost:

• Rental agreements – Long-term leases for apartments or commercial spaces
• Employment contracts – Agreements between expats and local employers
• Sales contracts – Property sales require stamped documentation
• Notarized powers of attorney – Often used for property transactions or legal representation
• Loan agreements – Banks and financial institutions apply stamp duty for credit agreements

For example, signing a one-year rental agreement in Antalya for 120,000 TRY per year will incur a stamp duty. The current rate for rental contracts is 0.189% of the annual rent value, resulting in a duty of approximately 226.80 TRY. Being aware of this upfront lets you budget accordingly without surprises at contract signing.

Stamp Duty Rates and Calculations

Stamp duty rates vary depending on the type of document and whether the fee is based on a fixed amount or a percentage. Here’s a breakdown of the most relevant rates for expats:

• Rental or lease agreements: 0.189% of the total contract value
• Employment contracts: 0.759% of the gross annual salary specified in the document
• Sales agreements (movable and immovable property): Typically 0.948%, but rates may change
• Power of attorney: Fixed amounts, starting from 90 TRY based on complexity

The duty is generally paid by the party who benefits most from the agreement. In many cases, however, the payment responsibility is shared or determined by mutual consensus. To avoid misunderstandings, make sure this is clarified before finalizing any document.

How and When to Pay Stamp Duty

Timing matters when it comes to stamp duty. Payment becomes due the moment a document becomes legally binding. Missing deadlines can result in fines or legal complications, especially in contractual matters related to immigration or property transfer.

• Pay through your bank via online tax transfer or at branches directing payments to Turkey’s tax authority (Gelir İdaresi Başkanlığı)
• Use official receipts when handling documents at public notaries or government offices
• Check payment responsibility with your landlord, lawyer, or employer in advance

As an example, if you’re purchasing real estate in Bodrum and signing the sale agreement on June 1st, stamp duty must be paid before submitting the document for title deed registration. Prompt payment ensures your transaction remains on track with authorities.

Useful Tips for Expats

Managing stamp duty may seem overwhelming at first, but a few practical steps can simplify the process and prevent missteps:

• Always request a copy of stamped documents for future reference
• Ask your legal advisor or notary when and how much to pay during complex contracts
• Keep digital records of payment receipts, especially for rental or employment documents
• Update your understanding yearly, as rates and legal requirements can change

Expats who remain informed and prepared save both time and money. Observing deadlines and recognizing your tax responsibilities helps keep your Turkish journey smooth and stress-free. Whether you’re renting your first apartment in Ankara or setting up a freelance contract in Cappadocia, stamp duty is an essential part of your expat life in Türkiye.