Capital Gains Tax    

Capital gains made from the sale of a property will be taxable in Turkey if the owner is a company and will constitute 20% of the profit. Individuals do not have to pay capital gains, provided they have owned the property for not less than 5 years. But the purchase tax 3.3% is to be paid anyway.

If a property was owned by an individual for less than 5 years capital gains tax is paid from the difference between the Tapu cost of the property and the revaluated cost determined by the municipality to be written in the new Tapu (not market value). The tax varies from 15% to 35%.
 
If capital gains is not more than 8 700 TL (app. 4,350 euro) – 15%; from 8 700 TL to 22,000 TL (app. 11 000 euro) – 20%; from 22,000 TL to 50,000 TL (app. 25 000 euro) – 27%; more than 50,000 TL – 35%.

If capital gains is less than 7 600 TL (app. 3 800 euro) it won’t be taxed.

After the property is sold the proceeds may be transferred out of Turkey.

Legal Informations

If you decided to purchase a property in Turkey, you should be aware of all legal specifications concerning your right to buy a property as a foreign citizen, what must be stated in the title deed and how many people can legally own a property in Turkey, what the inheritance procedure in Turkey is like and if you plan on a permanent stay you should know to obtain residence permit in Turkey. The answers to these questions you can find right here.

• Title deed – Tapu

• Foreign citizens who can legally buy property in Turkey

• Inheritance in Turkey

• Residence permit in Turkey

 

Taxes

Taxation is the essential part of expenses throughout the buying process and the future property maintenance. In case you rent out your property in Turkey or decide to devise or resell it, you should know what the taxation rates will be like. You can find the information on most common taxes in Turkey related to property owing in the articles below.

• Property tax

• Annual property tax

• Rental income tax

• Capital gains tax

• Inheritance and gift taxes

In case you have not found the answer to your question regarding property legislation and taxation it Turkey, please contact us, and we will gladly provide you with the information you need.

 

Buying Property in Turkey, Buyers Guide, Inspection Trips