In Turkey, a property held for more than five years is sold free of this tax. Sell sooner and the gain is taxed, though the purchase price is adjusted for inflation first. How the calculation works.
In Turkey the tax on a property sale is built around a simple time test. Hold the property for more than five years and the gain is not taxed. Sell inside five years and it is, but the system adjusts the purchase price for inflation, which in Turkey matters a great deal. The rules below come from the Revenue Administration's own brochure, with current-year amounts flagged where we could only confirm them in secondary sources.
The five-year rule
Gains from real estate acquired for value are taxable as value-increase gains if the property is disposed of within five years of acquisition. The five years are counted from the title-deed registration date, by calendar day. In some cases, such as a flat handed over ready for use before registration, the date of actual use can count instead, if you can prove it with utility bills and handover records. Property acquired without payment, such as by inheritance, is outside the tax. Anyone who buys and sells property as a regular business is taxed under different rules.
How the gain is worked out
The taxable gain is the sale price minus the cost of the property and the selling expenses, taxes and fees you bore as seller. Before subtracting, the purchase cost is raised by the domestic producer price index (Yİ-ÜFE) increase between the month before acquisition and the month before sale. Indexation applies only if that increase is 10% or more. In the official worked example, a property bought for TRY 1,000,000 in November 2020 and sold in February 2023 had its cost indexed up to about TRY 3.95 million, which cut the taxable gain sharply.
The annual exemption and the rates
An exemption amount is deducted from the net gain each year, and it is updated annually: TRY 55,000 for gains in 2023 and TRY 87,000 for 2024 according to the brochure. For 2026 one source lists TRY 150,000, which we could not confirm on an official page, so check the current figure. The rest is taxed at the progressive income tax scale, which runs from 15% to 40%; the bracket thresholds change each year.
Declaring and paying
Resident taxpayers declare the gain in the annual income tax return the following March, and pay in two equal instalments, in March and July. For non-resident taxpayers who are not otherwise obliged to file an annual return, the brochure says the gain must be notified on a separate return to the tax office where the property is located, within 15 days of the date the gain arose. Confirm with a Turkish adviser how this applies to your sale date.
Your home country
Turkey has double-tax treaties with many countries. Whether you owe tax at home, and whether Turkish tax can be credited, depends on your residence and the treaty, so take this to your home adviser before selling.
Before you sell
- check the title-deed registration date and count five years from it
- gather the purchase deed, proof of price and the seller's costs and fees you paid
- ask an accountant to compute the indexed cost
- confirm the exemption amount and tax brackets for the year of sale
- confirm whether you must file within 15 days as a non-resident
FAQ
Is a sale after five years taxed? No, not as a value-increase gain, for property acquired for value. Does inflation help me? Yes, the purchase cost is indexed by the producer price index if the rise is 10% or more. What is the rate? Progressive from 15% to 40% after the annual exemption. Do I file in March? Resident taxpayers do; non-residents not otherwise filing may have a 15-day notification rule. Is inherited property taxed? Not under this tax.
How we help
We connect you with Turkish accountants and lawyers and help prepare the documents a sale needs. Informational only, not tax or legal advice; exemption amounts and brackets change every year and secondary-source figures here are indicative, so confirm everything with a qualified Turkish tax adviser before selling.