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Capital Gains tax on
Sale of Turkish Property

If the sale of real estate continues and this activity is maintained within a commercial organization, the profit obtained is taxed as commercial gain. Gains arising from the disposal of Real Estate if it does not provide continuity and is not made within a commercial organization, are taxed as gains in value increase. But depending on the provision of certain conditions, there may be no taxation for the earned profit.

All capital gains from the sale of the property are exempt from income tax if the property is held for more than 5 years and received after January 1, 2007. 

The acquisition of the real estate acquired before 2007, four years after the date of disposal, as outlined in the five years after the case, regardless of the amount of the profit, capital gains, this is not given in the Income Tax, the tax is not payable. Besides, since the amount of earnings for taxation of sales earnings must exceed the exception amount determined for the year of the sale, no declaration is given if the profit does not exceed the exception amount, and if the declaration is given due to other income, the real estate sales gain is not included in the declaration.

Again, gains obtained from the disposal of real estate obtained free of charge without the limitation of possession time are not taxed as gains in value increase if they are not covered by commercial gains.

25% tax is paid on your income from real estate in Turkey. In this case, you are subject to additional income in your own country. After receiving your title deed, there will be no tax payable in the first year. But you must start paying taxes after the first year. Besides, if you sell your home during the first 4 years, you must pay the tax of the first year.

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