We offer a clear, data-backed guide for UK sellers planning a sale in Turkey. This introduction explains the basic rule: taxable gain equals selling price minus purchase price and allowed expenses. We keep the math simple and the steps practical.
Within five years of purchase, sales are generally subject to progressive rates; sales after five years are usually exempt. There is a 2024 exemption threshold of TRY 87,000 for real estate gains.
We also note filing deadlines: annual returns by March 31 with staged payments in March and July. Non-residents may face a 15-day declaration window from sale date. Double taxation treaties can reduce liabilities for foreign investors.
We guide you through computation, timing, and documentation so your sale is efficient and compliant. For tailored help, contact us at +90 538 025 99 96 or [email protected].
We open with a simple rule: who you are and how long you hold an estate shape whether sale profits are taxed in Turkey.
Residents are assessed on worldwide income, so any profit from a local sale is part of annual income tax reporting.
Non-residents are taxed only on Turkish-source income; many UK owners fall here and should check treaty relief.
Real estate sold within five years is generally taxable; sales after five years are usually exempt. This five-year window often decides whether you owe income-based levies on your sale.
Listed shares follow a different rule: holdings traded on the exchange may be exempt if kept for more than one year.
We recommend early planning with your accountant so your sale is compliant and efficient.
Start with the deed price and work backward: subtract indexed purchase costs and verified expenses to find the taxable amount.
Taxable Gain = Selling Price − (Purchase Price + Allowable Expenses). Include documented renovation, maintenance, legal costs, and service invoices to reduce the reported figure.
Indexation for inflation raises the purchase base, lowering what you report. Keep contractor receipts, bank transfers, and TAPU copies to support improvement claims.
Factor in title deed fees (4% declared value, usually split) and valuation reports in turkish lira with photos and TAPU checks. We coordinate appraisers and legal teams and help pursue double taxation relief for UK sellers.
Practical pricing decisions now shape net proceeds, buyer interest, and compliance with permit rules.
Pricing & declared values: From 16 October 2023, buyers seeking a residence permit will expect a title value of at least USD 200,000, converted to turkish lira on the day at TAPU. We set a price and declared value that supports financing and reduces later disputes.
Negotiations and buyer expectations: We manage negotiations to meet buyer checks and avoid under-declaration. Understating the price may lower immediate taxes but can inflate a later gain and attract penalties.
ItemImpact on NetActionDeclared price at TAPUAffects title fee and buyer permitSet to match market and financingSale within five yearsMay trigger gains tax turkeyModel scenarios; consider delayValuation reportSupports declared value in turkish liraObtain independent appraisal
Need tailored advice? Call us at +90 538 025 99 96 or email [email protected] for a bespoke plan.
Closing a sale well means blending timing, documentation, and smart reporting. Understand your gain after indexation for inflation and apply the correct exemption and progressive band so you protect profit.
Remember the five-year rule: sales after five years are usually exempt. The 2024 exemption (TRY 87,000) and indexation can reduce what you report.
File returns by March 31 and meet staged payments in March and July. Non-resident sellers may have a 15-day declaration window. Title deed fees are typically 4% of the declared value.
We equip UK owners of a home or villa with a clear guide and tailored advice to reconcile fees, treaty relief and timing. Call +90 538 025 99 96 or email [email protected] for bespoke support.
Residents and non-residents can owe a levy on profit from a sale. If you lived in the dwelling or owned it for more than five years, you may be exempt. UK sellers should also check the UK–Turkey treaty to avoid double taxation and confirm reporting obligations at home.
Holding a dwelling for over five years usually removes the requirement to declare the profit. This rule can save significant sums and should influence timing of a sale. Shorter ownership means the gain is typically taxable and must be reported.
The taxable amount equals the sale value minus the purchase price and permitted deductions, such as documented renovation costs, agent fees, title fees and valuation expenses. Keep original invoices and contracts to support the calculation.
Yes. Indexation allows you to adjust the purchase price for inflation, lowering the taxable amount. Proper documentation and correct indexation factors are essential to claim this benefit.
Annual returns must be filed by March 31 for the prior year. Payments are typically due in March and July. Non-residents may have to meet a 15‑day reporting rule after sale — consult local counsel to confirm exact timing.
For 2024, a statutory exemption level of TRY 87,000 applies to gains. Amounts below that threshold may not be taxed, but you must still check filing requirements and whether your situation qualifies.
Treaties, such as the UK–Turkey agreement, determine which country has taxing rights and provide credits to avoid paying tax twice. We recommend reviewing the treaty text and seeking advice to apply foreign tax credits correctly.
Allowable deductions include real estate agent commissions, title deed fees, notary and valuation costs, legal and advisory fees, and documented improvement expenses. Retain all receipts to substantiate claims.
Declared sale or purchase values can influence eligibility for investment‑based residence permits. Since a threshold of roughly $200,000 was referenced from October 16, 2023, accurate declarations and professional guidance are important when a permit is a goal.
Under‑declaring the transaction value may trigger audits, penalties and legal exposure. It can also harm mortgage negotiations or permit applications. We advise transparent documentation and market‑aligned pricing.
Engage tax and legal advisors before listing the asset or accepting an offer, especially if you approach the five‑year mark, plan major renovations, or have cross‑border tax ties. Early planning helps optimize timing, exemptions and documentation.
Non-residents may face quick reporting windows and accelerated payment rules. Confirm the 15‑day requirement and any withholding obligations with your adviser to avoid penalties.
We guide international investors through sales, exemptions and treaty issues. Call us at +90 538 025 99 96 or email [email protected] to arrange a consultation.