Tax and Fee Exemptions in Turkish Urban Transformation: Title Deed, Notary, Municipal Fees and 1% VAT (2026)

One of the biggest cost savings in urban transformation is the set of tax, fee and charge exemptions in Law No. 6306. Title deed fees, notary fees, stamp duty and municipal fees that would apply to a normal flat-for-land project largely disappear.

Which taxes and fees are waived?

Under Article 7(9) of the law, transformation transactions are exempt from:

Which transactions are covered?

Transactions to which the Ministry, Directorate, TOKİ, İller Bank, the authority, the contractor, an owner or a person who has used the risky building for at least one year as tenant or limited real right holder is a party:

• Before transformation: first sale, transfer, registration and mortgage of properties under the law (e.g. land share transfer to the contractor).
• After transformation: first sale, transfer, registration and mortgage of new units to owners, the contractor and one-year tenants.
• Elsewhere: building a new home or buying an existing one, inside or outside the area, because of a building under the law.
• First sales by the contractor, TOKİ, the authority or REITs.

The exemptions apply regardless of whether the existing building complied with zoning rules.

Municipal fees and the 1.5x rule

Under Article 7(10), on parcels with risky buildings, municipalities charge no fees for new construction area up to 1.5 times the existing area, regardless of change of use. Area above that may attract permit, parking and similar fees. This is a different rule from the 1.5x condition of Istanbul's Yarısı Bizden campaign, though they use a similar limit.

VAT: 1% up to 150 m²

In Law No. 6306 projects, VAT on home deliveries is 1% for the portion up to 150 m² net area; the excess is subject to the general rate. This directly affects the contractor's sale prices. Consult your accountant before any transaction.

Using the exemption in practice

1. The building's risky building assessment must be final.
2. Obtain a letter from the Provincial Directorate confirming the transaction falls under Law No. 6306.
3. Submit it to the land registry, notary or municipality.
4. Tenants and limited right holders must prove at least one year of residence.

Specify in the flat-for-land agreement who bears any remaining taxes and fees, and see our 2026 construction cost guide.

With ÇET Yapı

ÇET Yapı factors in exemptions and the 1.5x limit from the feasibility stage. Fill in our pre-application form.

This article is general information; consult a tax adviser on VAT and tax matters.