Turkey Inheritance & Gift Tax Guide 2026

Overview — Veraset ve İntikal Vergisi (VİV)

Veraset ve İntikal Vergisi is governed by the Inheritance and Gift Tax Law (Veraset ve İntikal Vergisi Kanunu No. 7338). The tax applies to all property and rights (movable, immovable, receivables, and intangible assets) transferred through inheritance or gratuitous transfer (gift) to persons who are Turkish residents. Turkish citizens residing abroad are also subject to VİV on transfers of property located in Turkey. Non-residents are taxed only on Turkish-situated assets. The tax is levied on the net value of the property transferred after deducting debts and funeral expenses (for inheritances) or the full value of the gift.

Tax Rates — VİV Rate Structure

The inheritance and gift tax rates are progressive, with different brackets depending on the relationship between the deceased/donor and the recipient:

For spouse, children, siblings, parents, and grandchildren (direct heirs — Group 1):

• Up to TRY 300,000: 1%
• TRY 300,001–TRY 700,000: 3% (minus TRY 6,000)
• TRY 700,001–TRY 1,700,000: 5% (minus TRY 20,000)
• TRY 1,700,001–TRY 3,500,000: 7% (minus TRY 54,000)
• Above TRY 3,500,000: 10% (minus TRY 159,000)

For all other recipients (non-relatives and distant relatives — Group 2):

• Up to TRY 300,000: 10%
• TRY 300,001–TRY 700,000: 15% (minus TRY 15,000)
• TRY 700,001–TRY 1,700,000: 20% (minus TRY 50,000)
• TRY 1,700,001–TRY 3,500,000: 25% (minus TRY 135,000)
• Above TRY 3,500,000: 30% (minus TRY 310,000)

Note: Gift tax rates are typically the same as inheritance tax rates. These brackets are estimated for 2026 based on the annual revaluation rate. The rates are applied to each recipient's share of the inherited estate or the value of the gift.

Exemptions and Allowances

Basic exemption (inheritance): A basic exemption applies to inheritance. As of 2026, the first TRY 5,000,000+ (estimated, indexed annually) of the total estate is exempt from VİV. This exemption is allocated proportionally among all heirs based on their shares. The exemption is higher for spouse and children compared to other beneficiaries. The exact exemption amount is announced annually by the GİB and is subject to the revaluation rate.

"D Share" exemption for surviving spouse: Upon the death of one spouse, the surviving spouse is entitled to a specific exemption known as the "D share" (D hissesi). The surviving spouse's statutory inheritance share (typically 1/4 of the estate under Turkish Civil Code, or the share specified in the will) is subject to reduced tax rates. Additionally, a tax exemption applies to certain amounts inherited by the surviving spouse. The surviving spouse's share up to certain limits may be fully exempt or taxed at a reduced effective rate.

Gift exemption: Cash or property gifts between spouses are exempt from VİV. Gifts to children up to certain annual limits (approximately TRY 60,000 per child estimated for 2026) may also be exempt, provided they are made in the ordinary course of parental support (e.g., wedding gifts, education expenses). Gifts to the state, municipalities, and registered charities are exempt.

Charitable bequests: Bequests made to the Turkish Treasury, provincial private administrations, municipalities, villages, and certain registered public benefit organisations (kamuya yararlı dernekler) are exempt from VİV.

Filing and Payment

Inheritance tax return: Must be filed within 4 months of the date of death (8 months for heirs residing abroad). The return is filed with the tax office (Vergi Dairesi) where the deceased was resident. The tax is payable in six equal annual instalments (the first due at filing, the remaining five in May and November of each subsequent year).

Gift tax return: Must be filed within 1 month of the gift (3 months for gifts between non-residents). The return is filed with the tax office of the recipient's residence. The tax is payable in three equal instalments (the first at filing, the remaining two in May and November of the same year).

Penalties: Late filing penalties (vergi ziyaı cezası) and late payment interest apply to returns filed after the deadline.

Valuation Rules

Assets included in the inheritance or gift are valued at their market value (rayiç bedel) on the date of death or gift. Real estate is valued based on the municipality's assessed value (emlak vergisi değeri) or the declared value at the Land Registry, but the tax office may reassess if the declared value is significantly below market. Publicly traded shares are valued at the stock exchange price on the date of transfer. Privately held company shares are valued based on the company's net asset value. Movable property (vehicles, jewellery, artwork) is valued at market price. Deductible debts include funeral expenses (up to certain limits), the deceased's outstanding debts, and testamentary execution expenses.

FAQs

Is life insurance proceeds subject to VİV?

Life insurance proceeds paid to named beneficiaries are generally not subject to VİV. However, if there are no named beneficiaries and the proceeds fall into the estate, they may be subject to inheritance tax.

What if I renounce an inheritance?

If an heir formally renounces the inheritance (mirası reddetme), they are not liable for VİV on that share. The renounced share passes to other heirs and is taxed in their hands.

Do foreign heirs pay VİV on Turkish assets?

Yes, non-resident heirs must pay VİV on inheritance of Turkish-situated assets (real estate in Turkey, Turkish bank accounts, shares in Turkish companies). The return is filed by the executor or a legal representative.

Are there any double tax treaties for inheritance tax?

Turkey has limited international agreements on inheritance tax. A few bilateral agreements exist, but for most countries, Turkish VİV applies to Turkish-situated assets regardless of the heir's residence. Foreign tax credits are generally not available for VİV.

Disclaimer

This guide provides general information about Turkish inheritance and gift tax for the 2026 tax year. Thresholds and rates are estimated based on the most recent published data and the annual revaluation rate. Tax laws may change. Always consult with a qualified Turkish tax advisor or GİB for advice specific to your situation. InvestmentKit does not provide tax advice.