Foreign nationals are taxed in Turkey on income obtained from renting a property in Turkey and are liable to several other property-related taxes outlined below. The tax year in Turkey is the calendar year.
Turkey has many double taxation agreements with different countries around the world. If there is a double taxation agreement (DTA) between your country and The Republic of Turkey, for the avoidance of double taxation, and the prevention of fiscal evasion concerning taxes on income and capital gains, then you only pay tax in Turkey, you need proof of payment, so you don't have to declare and pay the tax when you transfer the money back to your country.
Real Estate Capital Gains Tax will have to be paid if you sell your property within 5 years of purchase.
If you have taken out a mortgage to finance your property, the interest payments and other expenses will be included in the value of the property.
The tax is calculated by:
Adding onto the purchase price of the property, the annual inflation cost. This cost is then deducted from the sale price of your property.
looking at the balance, if this is higher than the Government allowance declared each year.
| Year | Allowance amount |
| 2020 | 18.000 TL |
| 2019 | 14.800 TL |
| 2018 | 12.000 TL |
| 2017 | 11.000 TL |
| 2016 | 11.000 TL |
Example:
| January 2017 Purchase Price | 200.000 TL |
| January 2018 Selling Price | 270.000 TL |
| Inflation Added | 230.931 TL |
| Selling Price | 270.000 TL |
| Difference Between Value/Selling | 39.069 TL |
| Allowance | 12.000 TL |
| After Allowance | 27.069 TL |
| Tax Payable | 4.473 TL |
| January 2017 Purchase Price | 200.000 TL |
| January 2019 Selling Price | 320.000 TL |
| Inflation Added | 265.931 TL |
| Selling Price | 320.000 TL |
| Difference Between Value/Selling | 54.069 TL |
| Allowance | 14.800 TL |
| After Allowance | 27.069 TL |
| Tax Payable | 4.673 TL |
| January 2017 Purchase Price | 200.000 TL |
| January 2020 Selling Price | 380.000 TL |
| Inflation Added | 308.614 TL |
| Selling Price | 380.000 TL |
| Difference Between Value/Selling | 71.386 TL |
| Allowance | 18.000 TL |
| After Allowance | 53.386 TL |
| Tax Payable | 10.772 TL |
Local property tax is payable in two equal installments, the first in May and the second in November. You have to contact your local municipality (Belediye) for further information and payment options. Tax is calculated based on the value of the property and is subject to thresholds set by the tax authorities as follows:
For real estate located outside of a metropolitan municipality area: Residences 0.1%
