Capital gains tax in Turkey

What is the tax imposed on selling the property?

They are fees payable in the event of owning a property in Turkey,  wanting to sell it before five years have passed since the date of its original purchase, depending on the amount of profit from the sale, and this tax is known as the capital gain tax, and the amount subject to tax is calculated by subtracting the purchase value The original property is from the sale value documented in the contract, so we get the amount of profit on the original capital and the tax is imposed only on the amount of profit achieved by the sale.

For example:

In the event that you buy a house in Turkey, with a value of 300 thousand Turkish liras, you want to sell it after three years, then I estimated the price of the house and sold it at a value of 350 thousand Turkish liras, and because the sale took place within less than five years from the date of the original purchase, then you must pay Profits tax on the capital and the taxable amount is calculated by subtracting 300, which is the original purchase value of 350, which is the value of the sale, so the amount of profit from the sale is 50 thousand Turkish liras, it is the taxable amount and falls within the 35% bracket, and The tax is due from you whether you are a Turkish or a foreigner residing or not residing in Turkey.

How much percentage should be paid according to the profit from selling the property?

 If the profit from the sale of the property is less than 6000 Turkish Liras, it is not subject to tax.

In the event that it is from 6000-7000 Turkish liras, the tax is due in the amount of 15% of the profit.

And if the profit is between 7000-18000 Turkish liras, then it is subject to tax at a rate of 25%.

And if it is from 18,000 to 40,000 Turkish liras, then the tax rate is equivalent to 27%.

As for the profit that exceeds 40,000 Turkish liras, he must pay 35% tax.

Does Turkey follow a policy of double taxation with foreigners?

One of the advantages of Turkey is that it has a good tax record with many countries around the world, and follows a policy of avoiding double taxation, so once you pay the value of the profit tax on the capital when selling the property in Turkey, you will no longer have to pay another due tax when you want to take the capital. To your home country.

What are the cases exempt from capital gains tax?

There are three cases that the property is exempt from capital gains tax:

  1. Buying real estate through a commercial project:

In the event that the investor wants to buy a property, through a commercial project, or a company that manages it in Turkey, the property is not subject to capital gains tax, the taxes are part of the investment business in Turkey and it is paid accordingly.

  1. Retention of property for a period of 5 years:

In the event that the owner maintains the property for a period of more than five years, he must not pay capital gains tax upon sale, which secures the largest possible return from real estate investment in Turkey.

  1.  Buying a New Home:

In the event that you buy a new home as a first residence in Turkey, you are subject to a special case of taxation, as the rules are little different with regard to taxes on capital gains, as only one year is granted from the date of the title deed, the home owner can sell it without entitlement Any tax on capital gains from the sale process, but once the first year has passed, it is entitled to pay capital gains tax if the sale is made within less than five years, but if the property remains the property of its owner for more than five years, it is also not required. Pay any tax if you want to sell it next.

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