العربية
1-Real Estate Taxes in Turkey:
- These are fees imposed on Turkish properties under the general tax system in Turkey. They include title deed fees.
- value-added tax, property capital gains tax, among others, each varying in rates, calculation methods, and tax percentages.
2- Property Capital Gains Tax in Turkey:
- Imposed on properties resold within less than 5 years of purchase, this tax deems the property an investment if sold within this period.
- The tax, known as Property Capital Gains Tax, is regulated by Article 80 of the Income Tax Law in Turkey and is determined by the profit difference between the property’s purchase and sale prices.
3- Exemptions from Property Capital Gains Tax:
- Exemption if the property is held for more than 5 years before resale.
- Inheritance of the property.
- Acquisition of the property through donation.
- Profits less than 18,000 Turkish Liras are exempt.
4- Calculating Property Capital Gains Tax:
- To calculate this tax, consider the inflation rate in Turkey a month before buying and a month before selling to determine the property’s value based on inflation.
- For example, if a property purchased in April 2016 at 400,000 Turkish Liras was resold in June 2020 at 850,000 Turkish Liras, the calculation involves evaluating the inflation index before both buying and selling.
- The calculated rate of change is then applied to the property’s initial cost to obtain its indexed value.
- After determining the net value of the property (sale price minus indexed cost), exemptions are subtracted, and the resulting amount is subject to tax. Additional stamp duty may also apply.
Calculation Example:
- Purchase Value: 400,000 Turkish Liras
- Sale Value: 850,000 Turkish Liras
- Indexed Property Cost: 767,639.45 Turkish Liras
- Net Property Value (Sale – Indexed Cost): 82,630.55 Turkish Liras
- Exemption Value: 18,000 Turkish Liras
- Taxable Amount (Net Value – Exemption): 64,360.55 Turkish Liras
- Calculated Capital Gains Tax: 12,847.35 Turkish Liras
- Stamp Duty: 97.20 Turkish Liras
Sources:
- Revenue Administration, Circular No. 186, 2014.
- Turkish Tax Authority.
- Revenue Administration, Circular No. 376, February 2021.
