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How Turkish Capital Gains Tax Works for Property Investors
When foreign investors sell property in Turkey within 5 years of purchase, any profit is subject to capital gains tax under the Turkish Income Tax Law (Article 80). Our calculator follows the official formula published by the Revenue Administration.
The Official Calculation Steps
- Step 1 — Index Adjustment: Purchase price is re-valued using the ratio of the Turkish producer price index (PPI) from the month before sale and the month before purchase.
- Step 2 — Adjusted Purchase Price: Purchase × Index Ratio.
- Step 3 — Gross Gain: Sale price minus the adjusted purchase price.
- Step 4 — Total Expenses: Title deed fees paid on sale, plus any documented costs.
- Step 5 — Net Gain: Gross gain minus total expenses.
- Step 6 — Annual Exemption: Updated each year by the Turkish Revenue Administration.
- Step 7 — Taxable Base: Net gain minus the annual exemption.
- Step 8 — Income Tax: Progressive brackets from 15% to 40% applied to the taxable base.
Key Exemptions
- 5-Year Rule: Property held for 5 years or longer is fully exempt from capital gains tax.
- 10% Threshold: If the producer price index increase between purchase and sale is below 10%, indexing is not applied.
- Annual Exemption: ₺150,000 for 2026, ₺120,000 for 2025, ₺87,000 for 2024.
Who Should Use This Calculator
- Foreign investors planning to sell Istanbul real estate before the 5-year threshold.
- Turkish citizenship-by-investment participants evaluating exit strategies.
- Property owners comparing net returns after Turkish tax obligations.
