Taxes in Turkey

Property related taxes are covered in our expenses and costs article.

Other taxes in Turkey include income tax and capital gains tax.

Income tax law is important for investors, should they wish to lease the property. Income tax bands on income derived from rent are as follows in Turkey.

  • Under 13,000 TL – 15%
  • 13,001 to 30,000 TL – 20%
  • 30,001 to 70,000 TL – 27%
  • 70,001 TL and over – 35%

For those who buy property as a company, corporation tax applies on the income of the company. This is applied at a flat rate of 20%.

Note, tax is applied on the profit generated, not the gross income.

Capital gains tax

When selling your property, you are obliged to pay tax on the profit generated. CGT is applied on the difference between the inflation adjusted buying price and the selling price.

The current CGT tax rate is applied at the rate of non-employment income tax rate (as per the above figures). If the property is owned by a company, then the corporate rate applies on the profit, which is currently 20%.

Individual ownership of a property for more than five years means your profit is tax free.