Capital Gains Tax in Turkey 2026: Selling Property

Capital gains tax in Turkey applies to anyone who sells a home or commercial unit at a profit within 5 years of its title deed registration; being a foreigner does not change the outcome. For sales made in 2026, the first TRY 150,000 of the gain is exempt and the remainder is taxed at the progressive 15%–40% rates of Article 103 of the Income Tax Law. Sales made after 5 years, and sales of inherited property, do not trigger this tax.

Author: Av. Egemen Yasin Şahalioğlu · Istanbul Bar Registration No. 66465 · Last updated: 06.11.2026

Capital gains tax in Turkey: selling property in Istanbul and calculating tax

Short answer: what you need to know in 2026

Who is covered? Individuals (including foreigners) who buy property without a commercial purpose and sell it within 5 years.
How are the 5 years counted? Day by day, from the title deed registration date to the date the sale is registered.
2026 exemption: TRY 150,000 (per year, not per sale).
Indexation: If the domestic PPI (Yİ-ÜFE) increase is 10% or more, the purchase price is indexed.
Filing: Turkish tax residents file in March of the following year; non-residents file a one-off return within 15 days of the sale.

Who pays capital gains tax in Turkey?
How does the 5-year rule work?
How is the tax calculated?
Step-by-step example
When and how is the return filed?
Can citizenship property be sold?
Other costs paid on a sale
How are sale proceeds transferred abroad?
Frequently asked questions
Official sources

Who pays capital gains tax in Turkey?

Under repeated Article 80 of Income Tax Law No. 193 (GVK), the gain from disposing of real estate acquired for consideration (purchase, exchange) within 5 years is a capital gain. The tax is triggered by the sale, not by nationality:

Foreigners resident in Turkey (full taxpayers) and foreigners living abroad (limited taxpayers) follow the same rule; only the filing method differs.
If the property was acquired by inheritance or gift, no capital gain arises.
For people who buy and sell continuously within a commercial organisation, the gain is business income, not a capital gain; the 5-year rule and the exemption do not apply.
Property held through a company is subject to corporate tax rules.

How does the 5-year rule work?

The period starts on the date the property is registered in the seller’s name and ends on the date the sale is registered at the land registry. After five full years, no capital gains tax arises however large the gain.

For off-plan (pre-paid) homes, the acquisition date is, as a rule, the title deed registration date, not the date of the promise-to-sell contract.
Special cases such as flat-for-land construction and change of property type are assessed separately.
If only a few months remain until 5 years, planning the sale date can remove the tax completely.

How is capital gains tax in Turkey calculated?

The sale price is established (the price declared at the land registry should not be lower than the real price).
The purchase price is determined; if the Yİ-ÜFE increase is 10% or more, it is increased by the ratio of the indices for the month before acquisition and the month before sale (GVK repeated Art. 81).
The title deed fee paid by the seller and documented expenses are deducted.
The TRY 150,000 exemption (2026) is deducted from the net gain.
The 2026 tariff applies: up to TRY 190,000 at 15%, up to 400,000 at 20%, up to 1,000,000 at 27%, up to 5,300,000 at 35%, above that 40%.

The exemption is applied once per calendar year; a person who sells two properties in the same year cannot use it twice.

Step-by-step example

Purchase (title deed registration): March 2023, TRY 4,000,000.
Sale: September 2026, TRY 9,000,000; seller’s 2% title deed fee = TRY 180,000.
Assuming the indexation condition is met, the purchase price is updated to, for example, TRY 7,600,000.
Net gain: 9,000,000 − 7,600,000 − 180,000 = TRY 1,220,000.
Taxable base after exemption: 1,220,000 − 150,000 = TRY 1,070,000; tax under the tariff is about TRY 257,000.

The figures only illustrate the method; the actual calculation must use the official Yİ-ÜFE indices for the relevant months.

When and how is the return filed?

Foreigner resident in Turkey (full taxpayer): An annual income tax return is filed between 1 and 31 March of the year after the sale; the tax is paid in two instalments in March and July. Filing can be done through the Revenue Administration’s pre-filled return system.
Foreigner living abroad (limited taxpayer): A one-off (münferit) return is filed within 15 days of the sale.
A Turkish tax number for foreigners is required. If the seller is not in Turkey, the process can be handled by a lawyer through title deed transfer by power of attorney.

Can property bought for citizenship by investment be sold?

For property bought for Turkish citizenship by investment, a 3-year no-sale annotation is placed on the title deed. The property should not be sold before this period ends; otherwise serious consequences may arise for the citizenship file. After 3 years the annotation can be lifted and the property sold, but if 5 years have not passed, capital gains tax still applies.

Other costs paid on a sale

Title deed fee: 2% of the sale price each for buyer and seller (4% in total).
Land registry service fee and the cost of the valuation report required for sales to foreign buyers.
The property tax for the year of sale belongs to the seller; any debt should be settled before the land registry appointment.
If the sale is part of a company or commercial activity, VAT and business income rules are assessed separately.

How are sale proceeds transferred abroad?

Receiving the sale price through a bank matters both for documenting the source and for transferring the money abroad. Banks ask for the title deed sale document and payment records at transfer. For account opening, see opening a bank account in Turkey. On the real estate side of a sale, Property Time Istanbul provides support.

Frequently asked questions

Do foreigners pay tax when selling property in Turkey?

Yes, if they sell at a profit within 5 years of title deed registration and the gain exceeds the TRY 150,000 exemption (2026). After 5 years, this tax does not arise.

Is there any tax on a sale after 5 years?

No capital gains tax arises; however, the seller’s 2% title deed fee and the property tax for the year of sale are paid.

Does the 5-year rule apply to inherited property?

No. Gains from selling property acquired without consideration, such as by inheritance or gift, are not capital gains.

When does a foreigner living abroad file the return?

A limited taxpayer seller files a one-off return within 15 days of the sale.

Is indexation always applied?

No. The purchase price is indexed only if the Yİ-ÜFE increase between purchase and sale is 10% or more.

Will I also pay tax in my home country?

The gain on property in Turkey is taxed in Turkey; if your country of residence also has taxing rights, the double tax treaty and credit rules apply. See tax residency in Turkey.

Official sources

Av. Egemen Yasin Şahalioğlu — attorney registered with the Istanbul Bar (No. 66465), practising since 2019. Egemen Global Law Office, Skyland Istanbul, Sarıyer. Consultations in Turkish, English, Arabic and Persian. Phone/WhatsApp: +90 532 276 80 85 · lawyer@egemenyasinsahalioglu.av.tr

This article is for general information only and does not replace legal or tax advice on the specific facts of your case. Tax amounts are updated every year; check current legislation before any transaction.

Capital Gains Tax in Turkey 2026: Selling Property as a Foreigner