How much tax do I have to pay when I sell my property?

7 April 2019

You don’t pay any tax, if you sell your property after 5 years of purchase. If you sell your property within the first five years of purchase, you will need to pay a profit tax from the difference between the price you bought the flat and the price you sell it for.  On average you will be taxed around 20% of the profit. However, this amount can go up or down significantly, depending on how much you claim the sales price on the title deed.Here is a detailed explanation. For example if you bought the flat for 100,000 TL and you are selling for 140,000 TL three years later, you will be responsible to pay a profit tax for 40,000 TL. Every year the Turkish Finance Ministry declares the rates and the free allowance amounts. Free allowance rate and the gradual tax rates for 2015 are as below:

Tax free          10.600 TL

First                 10.700 TL                                           %15

Following        10.700-26.000 TL                               %20

Following       26.000-60.000 TL                               %27

Following        60.000.000 TL and above                  %35

So, with the above example, you will be responsible for tax as below:

Profit 40,000

40,000 – 10,600 (tax free amount) = 29, 400 (this is the amount you are responsible for)

Of this 29,400 you will pay 20% rate for the part up to 26,000 and then you will pay 27% rate for the remaining part of 3,400. So you will end up paying:

(20% x 26,000) + (27% x 3,400) = 6,118 TL

Note: These figures are calculated according to current tax regulations.  The Government has a right to increase or decrease this amount.