Tax on Selling Within 5 Years in Turkey: When You Pay It and How It Is Calculated (2026)

Some of our clients buy a property as an investment, and then a good opportunity to sell comes along after two or three years. The question that should come before the decision is: how much will I keep after tax? In Turkey a clear rule governs this: the five years.

The rule in two lines

• Selling before 5 years from registration at the land registry: the gain is subject to income tax after the annual exemption.
• Selling after 5 years: no tax on the gain from selling the property.

The annual exemption in 2026

The first 150,000 lira of capital gain realised in 2026 is exempt; the exemption was 120,000 lira in 2025. The amount is updated every year and applies to the total of such gains in the year.

How is the gain calculated?

1. The sale price declared at the land registry.
2. Minus the purchase cost declared when you bought.
3. Minus related expenses such as the title deed fee you paid on purchase.
4. With the purchase cost indexed to inflation in specific cases: if the domestic producer price index rose by a certain percentage during the ownership period, the purchase cost is increased by the same percentage, which reduces the taxable gain.

The annual exemption is then deducted, and the progressive income tax scale is applied to the remainder.

Why does the declared value matter?

The whole calculation depends on the two values recorded at the land registry on purchase and on sale. Some sellers suggest declaring a lower value to reduce the title deed fee; in practice, this means your apparent gain on sale will be larger than the real one, so you pay more tax, on top of it being a violation. In sales to foreigners, the declaration is also linked to the valuation report. We explain this in the valuation report guide.

When and how do you declare?

• Deadline: in March of the year after the sale. A sale in 2026 is declared in March 2027.
• Method: an annual tax return, usually handled by a certified accountant (Mali Müşavir).
• Documents: the official purchase and sale deeds, fee receipts and proof of expenses.

Special cases

• Inheritance and gifts: no capital gains tax on selling property acquired free of charge.
• Non-residents: the rule applies to sales in Turkey, and double taxation treaties between Turkey and your country may affect what you pay here or there. Consult an accountant.
• Companies: if the property is owned by a company, it is subject to corporate tax under its own rules.

A rough example

You bought an apartment at a declared value of 4 million lira and sold it three years later for 6 million. Before inflation indexing and expenses, the gain is 2 million lira. After indexing the purchase cost to inflation where applicable, and deducting expenses and the annual exemption, what remains is the amount subject to the progressive scale. The final figures are calculated by the accountant based on the years of sale and their indices.

How should you plan for it?

• If your investment is long term, the five years make a later sale exempt from this tax.
• If you might sell soon, calculate the net profit after tax before buying, not after.
• Keep every document from day one.

For the selling steps themselves and transferring money abroad, read the guide to selling your property in Turkey. And for assessing the investment in general, see Is property in Turkey a good investment in 2026?.

We work with certified accountants who calculate the expected tax for our clients before they decide to sell. Contact us.