Capital gains taxes when selling properties
Capital Gain Tax when selling a property in Turkey
What most known between property buyers is the stamp duty tax that the buyer and seller must equally pay when a property is sold which is 2.2%. There is an important different tax called Capital gains tax buyers must know about.
If a buyer decides to sell his property in Turkey or sell it to make a profit within 5 years of the date of purchase, a tax will be input once the sale is done. It is known as the Capital gains tax and calculated according to the amount of profit made from the sale which means the tax the buyer pays depends on the difference( money profit) made between the original property price and the price declared from the sale.
Here is the detailed rate of capital gains tax on the sale:
Profit less than 6000₺ → no CGT(capital gains tax)
Profit between 6000₺ and 7000₺ → CGT 15%
Profit between 7000₺ and 18000₺ → CGT 25%
Profit between 18000₺ and 40000₺ → CGT 27%
Profit over 40000₺ → CGT 35%
NOTE: Thanks to the Turkish taxation policy with many countries, buyers who are paying the capital gains tax are not obliged to pay double taxation at their home countries. For example, if a property owner sells his property within 5 years and pays the CGT he won't be asked to pay any other tax while taking the money to the home country.
Buying a property in Turkey through a business.
According to the Turkish taxation policy, buyers who are running a business in turkey and bought their properties through this business are not asked or subjected to capital gain tax. It is identified as a normal business income and only subjected to taxed related to it. The property capital gains tax is only related to properties sold within 5 years, and if the properties are held on for 5 years then sold, no taxes are input or asked from owners.