Capital Gains Tax in Türkiye: What Foreign Property Owners Need to Know

If you’re a foreign owner selling property in Türkiye, understanding the capital gains tax (CGT) rules is essential to avoid unexpected costs. The amount of tax you owe depends on when you purchased your property and how long you’ve owned it.

Capital Gains Tax Rules for Property in Türkiye

1. Property Purchased Before March 2007

• If you’ve owned the property for at least 4 years before selling, no capital gains tax is due in Türkiye.

2. Property Purchased After March 2007

• If you’ve owned the property for at least 5 years, no CGT applies in Türkiye.

• However, you may still need to declare the gain in your home country when repatriating funds.

When Is Capital Gains Tax Payable?

If you sell before the 4 or 5-year exemption period, you’ll owe tax on the profit (the difference between the purchase and sale values declared on the title deed).

Tax rates follow Türkiye’s income tax bands, ranging from 15% to 35%, depending on your profit level.

Important Considerations

• Underdeclared Purchase Price? If you initially undervalued your property to reduce taxes, selling before the exemption period could result in high CGT liabilities, making a sale financially unviable.

• Consult an Accountant: Tax laws can be complex, so seek advice from a local accountant in Türkiye before selling.

Final Thoughts

Planning to sell your property in Türkiye? Ensure you understand the capital gain tax rules to avoid surprises. If in doubt, professional advice is highly recommended