Turkish Inheritance Law and Tax for Foreign

For foreign property owners in Turkey, understanding local inheritance laws and tax regulations is not just advisable, but essential. Many assume their home country's wills automatically cover their Turkish assets, but Turkish courts prioritize local laws, especially for real estate. Turkish law governs the inheritance of immovable property (real estate), while movable assets (like bank accounts) are subject to the deceased's nationality law. This distinction is crucial, as a lack of proper planning can lead to assets being distributed contrary to your intentions and prolonged disputes.

Turkish Inheritance Law: Core Principles

Turkish inheritance law (TCC) emphasizes family protection through mandatory reserved shares.

Forced Heirship (Saklı Pay)

Forced heirship, known as "Saklı Pay," ensures a portion of the estate is reserved for close relatives (spouse, children, parents). This means certain relatives cannot be entirely disinherited through a will. For example, children are entitled to at least 2/3 of the estate, even if a will states otherwise. Reserved shares are distributed as follows: children (up to 75%), parents (up to 50%), siblings (up to 25%), and a spouse without children (up to 50%). This law is a fundamental limitation on the freedom to distribute assets in Turkey and cannot be overridden by a will.

Statutory Heirs (In Absence of a Valid Will)

In the absence of a valid will, assets are distributed in a fixed order:

• First Degree: Direct descendants (children and their descendants).
• Second Degree: Deceased's parents and their descendants (siblings).
• Third Degree: Deceased's grandparents, uncles, aunts, and their descendants.
• A surviving spouse's inheritance rights vary based on the presence of other heirs: one-quarter with children, one-half with parents, and three-quarters with extended family. If there are no children, the spouse inherits the entire estate.

Crucial Distinction Between Movable and Immovable Property

• Real Estate: The inheritance of real estate (land, houses, apartments) located in Turkey, regardless of the deceased's nationality, is strictly governed by Turkish laws.
• Movable Property: Assets such as vehicles, jewelry, and bank accounts in Turkey are distributed according to the deceased's nationality law.
• This separation means a death can initiate two separate inheritance processes under different legal frameworks.

Drafting a Turkish Will: Why It Matters?

A well-drafted Turkish will is perhaps the most critical step for foreign property owners to ensure their assets are distributed according to their wishes.

Importance of a Turkey-Specific Will for Foreigners

Foreigners often assume their home country's will covers their Turkish assets, but Turkish courts prioritize local laws, especially for real estate. Without a Turkey-specific will, one's assets may be distributed according to forced heirship rules, overriding their intentions. A Turkish will is the best way to transfer inheritance.

Types of Wills and Formalities

• Official Will (Notarized): This is the most secure option. It must be drafted and notarized in the presence of a Turkish public notary. It requires two witnesses and a sworn translator if the testator does not speak Turkish.
• Holographic Will (El Yazması Vasiyetname): This must be entirely handwritten, dated, and signed by the testator. It does not require witnesses or a notary, but carries higher risks of disputes over authenticity.
• Digital Wills: Currently, digital wills are generally not valid in Turkey.

Addressing Cross-Border Inheritance Conflicts

Turkish courts may disregard foreign wills for local assets. To avoid conflicts, it is strongly recommended to draft separate wills for Turkish and foreign holdings.

Probate Process for Foreigners

Upon the death of a foreign property owner in Turkey, heirs must navigate a specific legal process to transfer assets.

Obtaining a Certificate of Inheritance (Veraset İlamı)

This official document confirms who the legal heirs are and their respective shares in the inheritance. It is essential for transferring property into their names at the land registry, or for legally managing the property in any way. For foreign nationals, this certificate cannot be obtained from a Turkish notary. Instead, foreign heirs must apply to a Turkish Civil Peace Court. This process can take 6 to 18 months.

Necessary Documents and Procedural Steps

Heirs must provide official documents and evidence to the court to prove their status as heirs. These documents include the deceased's death certificate, heirs' birth certificates, the deceased's marriage certificate (if applicable), civil registry extracts, the deceased's will (if available), and apostilled declarations. All original foreign documents must be apostilled by the competent authorities in their country of origin to be recognized in Turkey.

Typical Timelines and Costs

The average time to obtain a certificate of inheritance for foreigners can range from 6 to 18 months. Costs are expected for court filings, translations, and legal representation, which can amount to 3 to 5 percent of the estate value.

Inheritance and Gift Tax in Turkey

Beyond the legal process, understanding the tax implications of inheritance and gifts in Turkey is crucial for foreign property owners and their heirs.

Overview of the Turkish Inheritance Tax System

Foreigners are subject to inheritance and transfer tax if the inherited or transferred assets are located within Turkey, regardless of whether the heir lives in or outside Turkey. Inheritance tax must be declared and paid within three years of obtaining ownership of the inherited property, typically in May and November each year.

Tax Rates and Exemptions for Heirs

Inheritance tax rates are progressive, meaning higher-value inheritances are taxed at higher rates. Turkey offers significant tax exemptions for direct heirs, particularly spouses and descendants (including adopted children).

• For 2025, the exemption for each share of inheritance falling to descendants (including adopted children) and spouses is 2,316,628 Turkish Lira.
• If there are no descendants, the share falling to the surviving spouse is exempt up to 4,636,103 Turkish Lira.
• The general exemption for gratuitous transfers (gifts) for 2025 is 53,339 Turkish Lira.

Turkish Inheritance and Exemption Tax Rates (As of January 1, 2025)

Inheritance Tax Rates:

• Up to 2,400,000 TL: 1% (Inheritance) / 10% (Gift) 
• Next 5,700,000 TL: 3% (Inheritance) / 15% (Gift) 
• Next 12,000,000 TL: 5% (Inheritance) / 20% (Gift) 
• Next 24,000,000 TL: 7% (Inheritance) / 25% (Gift) 
• Over 44,100,000 TL: 10% (Inheritance) / 30% (Gift) 

Exemption Amounts (2025):

• For each share of inheritance falling to descendants (including adopted children) and spouses: 2,316,628 TL 
• If there are no descendants, the share falling to the surviving spouse: 4,636,103 TL 
• For gratuitous transfers (gifts, prizes): 53,339 TL 

Considerations for Double Taxation Treaties

Turkey has double taxation treaties with many countries (e.g., 85 countries). These treaties aim to prevent inherited assets from being taxed twice in Turkey. Consulting a tax advisor is essential to understand how these treaties apply to one's specific situation.

Key Takeaways and Legal Guidance

Navigating Turkish inheritance and tax law as a foreign property owner is complex. It highlights the indispensable role of professional legal assistance.

Essential Role of Legal Expertise

Having a qualified Turkish lawyer is essential for foreign property owners and their heirs. They can help manage forced heirship rules, draft bilingual wills, represent heirs in court, and guide through the inheritance tax process.

Common Challenges and Proactive Solutions

• Challenge: Foreigners often assume their home country's will is sufficient for Turkish assets.
  • Solution: Draft a Turkey-specific will or separate wills for Turkish and foreign assets.
• Challenge: The probate process for foreigners requires a court application, not a notary, leading to delays.
  • Solution: Engage a Turkish lawyer early to prepare necessary apostilled documents and manage the judicial procedure.
• Challenge: Understanding and complying with Turkish inheritance tax.
  • Solution: Consult a Turkish tax advisor and lawyer to understand tax obligations, exemptions, and double taxation treaty implications.

FAQ

Conclusion and Next Steps

Navigating Turkish inheritance and tax law as a foreign property owner can be complex, but with the right information and professional guidance, one can ensure their assets are protected and their wishes fulfilled.

Summary of Key Points

• Turkish law governs real estate inheritance; an individual's national law applies to movable assets.
• Forced heirship rules limit testamentary freedom; drafting a Turkish will is vital.
• Foreigners must obtain a certificate of inheritance from a Turkish Civil Court, a process that can be lengthy.
• Inheritance tax applies to Turkish assets, with progressive rates but significant exemptions for direct heirs.
• Double taxation treaties can prevent double taxation.

Strong Recommendation to Consult a Qualified Turkish Lawyer

Given the complexities of Turkish inheritance law, the mandatory court processes for foreigners, and the tax implications, engaging a qualified Turkish lawyer is not just beneficial, but essential. A lawyer can provide tailored advice, draft compliant wills, manage the probate process, and ensure adherence to tax obligations.