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Tax/Taxation

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 GAIN TAX

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.

Income Tax Allowance Exemptions

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
 

CALCULATING THE INCOME TAX

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%

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