In a written statement, the ministry said the daily’s report included "insulting" remarks and comments "reflecting hatred".
"Recently, European media outlets seem to be in a race to defame our country and our president with political arguments, instead of making impartial and correct news," the statement said.
"We condemn this story [of Bild newspaper] and the twisted understanding used to headline it," the statement added.
The ministry also said: "Those who try to gain something from opposition to our president by publishing tabloid journalism should understand it has no value...These kind of stories that ignore publication ethics and thrive on xenophobia and racism belong to garbage can of history."
The newspaper's Wednesday edition used a near-full-page photograph of Erdogan with the headline and taglines in German: "BILD says Erdogan the truth in the face: You are not a democrat! You harm your country! You are not welcome!"