Selling property in Turkey taxes | capital gains tax

Capital gains tax Turkey

After purchasing a property in Turkey, at some point you might decide that now is the time to sell your property. In this blog, we talk about selling property in Turkey taxes and what costs you might have to pay after your home has been sold. Property taxes are relatively low in Turkey compared to other countries, and this includes property sales.

Capital gains tax in Turkey

If you sell your property within the first five years of the initial purchase, you will be subject to paying capital gains tax in Turkey. However, you will not need to pay this after the five years have lapsed.

The amount of total capital gains tax you need to pay will be calculated as a percentage of the profit you make between the declared value of your property when you first bought it, and the sale price you declare at the Land Registry (TAPU office) when you sell it.

To work out how much capital gains tax you might have to pay in Turkey, use this simple guide below:

- For profits up to 6,000 Lira, no capital gains tax to be paid.

- 6,000 to 7,000 Lira: 15% capital gains tax will be paid.

- 7,000 to 18,000 Lira: 25% capital gains tax will be paid.

- 18,000 to 40,000 Lira: 27% capital gains tax will be paid.

- 40,000 Lira and more: 35% capital gains tax will be paid.

Other fees on a Turkey property purchase

Other fees on a Turkish property sale include the title transfer fee, which is 4%. Turkish law states that the title deed transfer fee is payable by both parties: so 2% by the buyer, and 2% from the seller. However, usually it falls to the buyer to pay the whole 4%. This amount is determined by a property valuation, which is paid for by the seller.

The document the parties receive from the valuation company holds the following information:

– Title deed details

– Location of property on a map with co-ordinates

– Photos of the property

– Prices of equivalent properties

– Price confirmation

– Details of any debt on the property

– Confirmation from the TAPU office and cadastre general directorate

The document will be presented to the TAPU office.

VAT exception for first-time buyers

Foreigners and Turkish citizens living abroad for more than six months are currently exempt from paying the 18% VAT on their first property purchase in Turkey, providing they pay using a foreign currency. This is only applicable to new builds and off-plan properties larger than 149 square metres. You’ll have to hold onto your property for at least a year, or you’ll be liable to repay the tax in Turkey.

Are you looking to sell your property? Please contact us and we will be happy to assist you in selling your property and paying all the appropriate property taxes in Turkey.


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