Selling Property in Turkey as a Foreigner 2026: Capital Gains Tax, 15-Day Return and Money Transfer

Does a foreigner selling property in Turkey pay capital gains tax?

A foreigner selling property is subject to the same rule as a Turkish citizen: if a property acquired for consideration is sold within 5 years, the resulting gain is treated as a capital gain (değer artışı kazancı). This rule is set out in the Income Tax Law No. 193 and does not change according to nationality (Income Tax Law, Repeated Art. 80/1-6).

A capital gain is the profit arising from the disposal of a property and is subject to income tax. In everyday language it is called "değer artış vergisi" or "değer artış kazancı vergisi", and in English-language sources "capital gains tax"; legally, it is not a separate tax but income tax. The tax is charged not on the whole sale price but on the gain remaining after cost and the exemption are deducted.

In two cases no tax arises at all. The first is where the property is sold after 5 full years. The second is where the property was acquired free of charge, such as by inheritance or gift, that is, without paying a price. In this second case, no capital gain arises even if the sale takes place shortly after the acquisition.

Which property sales trigger capital gains tax in Turkey as of 2026?

Capital gains tax arises when a purchased property is sold before 5 years have passed and the annual gain exceeds the exemption; it does not arise on property acquired by inheritance or gift. The exemption, which was TRY 120,000 in 2025, has been raised to TRY 150,000 for 2026; the tax brackets have also been redetermined for 2026.

Capital gains tax by type of sale (as of October 2026)

The TRY 150,000 exemption is not applied to each sale separately; it is applied once to the total of capital gains in the same calendar year.

Which facts change the tax outcome when selling a home in Turkey?

When selling a home, the tax outcome is determined by the title deed registration date, the method of acquisition, the actual purchase price and the seller's residence status. For this reason, the question "I am selling my home; will tax arise?" cannot be answered with a single piece of information. Before the sale, the following questions should be answered:

• the date of registration in the land registry and the day the 5 years end,
• whether the property was acquired by purchase, inheritance or gift,
• the purchase price shown on the title deed and the price actually paid,
• the bank receipts showing the purchase payment and the foreign exchange purchase certificate (DAB),
• whether the seller is resident in Turkey,
• whether there is another property sale in the same year,
• whether the property was bought with a value added tax (VAT) exemption or for citizenship,
• whether there is any property tax debt.

For example, if one of two sellers living abroad is selling an inherited flat, there is no filing obligation. If the other is selling a flat bought three years ago, the 15-day period starts to run.

From which date does the 5-year capital gains period start when selling a home in Turkey?

As a rule, the five-year period starts from the date on which the property was registered in the land registry in the seller's name. The Revenue Administration calculates this period in calendar days. For example, for a flat registered in the land registry on 20 October 2023, the 5-year period ends on 20 October 2028. The law does not expressly state whether a sale made on the fifth anniversary counts as within the period. For this reason, leaving the sale until 21 October 2028 or later is the cautious approach.

In its decision of 25 January 2023 (E. 2021/1448, K. 2023/72), the Council of State Plenary Session of the Tax Law Chambers also emphasised that, for immovable property, acquisition takes place upon registration in the land registry. As a rule, the day a promise-to-sell agreement is signed or the day the first payment is made does not start the period.

There is an exception to this rule. If the property was handed over ready for use before title deed registration and this handover can be documented, the date of actual use may be taken as the basis. In its advance tax rulings, the Revenue Administration has accepted documents such as a handover report or water, electricity and natural gas bills. This exception is particularly important for off-plan flats whose title deeds are issued late.

How is capital gains tax on property in Turkey calculated?

The capital gain is found by deducting from the sale price the indexed purchase price and the expenses and fees paid by the seller. The purchase price is updated by the increase in the Domestic Producer Price Index (Yİ-ÜFE) of the Turkish Statistical Institute. However, this indexation may be made only if the rate of increase is 10% or more, and the month in which the sale is made is not taken into account.

Example case · hypothetical

Consider a hypothetical example: a flat bought for TRY 3,000,000 is sold in 2026 for TRY 8,000,000, and the index increase is 80%. The indexed cost is TRY 5,400,000, and the seller's title deed fee of 2% (20 per thousand) is TRY 160,000. The gain is TRY 2,440,000; after deducting the TRY 150,000 exemption, the tax base is TRY 2,290,000. Under the tariff below, the tax for a seller with no other income subject to declaration in the same year is TRY 684,000.

2026 income tax tariff, income other than wages (as of October 2026)

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How is capital gains tax calculated on property in Turkey bought with foreign currency?

For property bought with foreign currency, the gain is calculated in Turkish lira. As a rule, the purchase price is based on the Turkish lira equivalent of the foreign currency converted for the payment. Since 2022, under regulations of the Central Bank and the General Directorate of Land Registry and Cadastre, a foreign buyer sells the foreign currency to a bank before the title deed transfer. The foreign exchange purchase certificate (DAB) is the main evidence of the purchase price; for purchases before 2022, bank receipts serve the same function.

The depreciation of the Turkish lira can increase the capital gain even if there is no profit in foreign currency terms. The Income Tax Law does not separate exchange rate differences from the gain on the sale of immovable property. The exchange rate difference exemption applies only to securities and shares in participations acquired with capital brought in under foreign capital legislation (Income Tax Law, Repeated Art. 81). Yİ-ÜFE indexation may partly offset this effect.

When does a foreigner living abroad file a capital gains tax return in Turkey?

A foreigner living abroad is a non-resident (limited) taxpayer. As a rule, this seller declares the capital gain not in March but by a special return within 15 days from the date the gain is obtained. The Law sets out this obligation as follows (Income Tax Law, Art. 101): non-resident taxpayers "are obliged to declare" their gains from immovable property "by a special return to the tax office of the place where the immovable property ... is located."

A foreigner considered resident in Turkey, on the other hand, is a resident (full) taxpayer and declares the gain by an annual return in March of the following year. A person who has a domicile in Turkey or who stays in Turkey continuously for more than 6 months in a calendar year is considered resident. This distinction depends not on nationality but on residence. Foreigners who come for a specific and temporary purpose such as work, study, medical treatment or travel are not considered resident even if they stay for more than 6 months.

Under the Turkish Civil Code, domicile is the place where a person lives with the intention of staying permanently. For this reason, a residence permit is one of the facts indicating residence, but it does not determine the outcome on its own. A seller who holds a residence permit but spends most of the year abroad and has no place in Turkey where they live permanently may be treated as a non-resident taxpayer. The position of a non-resident taxpayer who is required to file an annual return for other income in Turkey should be assessed separately.

Is capital gains tax in Turkey paid in March or within 15 days?

A non-resident taxpayer filing a special return pays capital gains tax within the same 15-day period as the return; the March and July instalments of resident taxpayers do not apply to this seller.

The Income Tax Law starts the 15-day period from the date the gain is "acquired". If the sale price has been paid in full at the title deed transfer, the gain may be regarded as obtained on that day; in that case, the period runs from the following day. If part of the price is paid before or after the transfer, the start of the period should be assessed separately.

According to the Revenue Administration's brochure, the tax on a special return is paid within the filing period. The Tax Procedure Law also regulates sending the return by post or electronically. Electronic filing can be made through a professional accountant authorised to do so.

For this reason, who will file the return and by which method should be decided before the seller leaves Turkey. If the deadline is missed, the administration may assess the tax together with a penalty and late payment interest.

Who pays the title deed fee on a property sale in Turkey and on what value is it charged?

Under the tariff annexed to the Law on Fees, the title deed fee is charged separately on the buyer and the seller at a rate of 2% (20 per thousand) each (as of October 2026), on the declared sale price. However, this base cannot be lower than the property tax value of the property (Law on Fees, Art. 63). The parties may agree on a different split between themselves; this agreement does not change from whom the fee is collected at the land registry office.

If it is later found that the declared price did not reflect the true position, the fee corresponding to the difference is collected from the buyer and the seller together with a tax loss penalty of one times that amount.

Property tax debt should also be checked before the sale. Buildings and land with property tax debt cannot be transferred, except for exceptions such as inheritance and court decisions. For this reason, the debt must be paid before the title deed appointment.

How does a low purchase price on the title deed increase capital gains tax?

If the purchase price was shown on the title deed as lower than the amount actually paid, the tax administration may accept this lower price as the cost on sale; this artificially increases the capital gain.

In a case reviewed by the Council of State, a person had sold in 2011, before 5 years had passed, a property bought in 2009. The tax administration found that the gain had not been declared. Relying on a decision of the assessment commission, the administration accepted as the cost the TRY 2,500 in the land registry record and the construction servitude price.

The tax court stated that the actual purchase price had to be established by assessing the invoices and all the evidence together, and it cancelled the assessment. The Council of State 9th Chamber upheld this outcome by its decision of 1 March 2022 (E. 2019/1050, K. 2022/644).

This decision shows that invoices, bank receipts and contracts showing the actual purchase price can be decisive at the time of sale. However, the same documents also reveal that the title deed fee on the purchase was paid on a lower price. In that case, the fee difference on the purchase may be assessed with a tax loss penalty of one times that amount. The statute of limitations is 5 years from the beginning of the year following the year in which the fee arose.

When can property bought with a VAT exemption or for Turkish citizenship be sold?

Selling property bought with a VAT exemption or for citizenship is not prohibited; however, there is an additional rule to consider before the sale. For a residence bought with a VAT exemption, this rule is a tax payment; for a residence bought for citizenship, it is the 3-year annotation on the title deed.

What happens if a residence bought with a VAT exemption in Turkey is sold within 3 years?

If a residence or workplace sold without VAT on first delivery to a foreigner not resident in Turkey is sold within 3 years, the VAT not collected is paid together with deferral interest. This payment is made by the person selling the property before the title deed transaction (VAT Law, Art. 13/i). In the words of the Law, the tax not collected on time "must be paid by the person disposing of it before the title deed transaction."

This period was increased from one year to three years in April 2022. This rule does not change according to whether the new owner buying the residence is a foreigner or a Turkish citizen. When planning the sale, the invoice to which the VAT exemption was applied and the delivery date should be checked, and where necessary the payment amount should be reflected in the sale price. This payment also directly affects the net amount the seller will receive after the sale.

Can property bought for Turkish citizenship be sold before 3 years?

An annotation that the property will not be sold for 3 years is placed on the title deed of a property bought for at least USD 400,000 for citizenship by investment. This condition is set out in the Regulation on the Implementation of the Turkish Citizenship Law. When the 3 years have passed, the annotation is removed by the land registry office at the owner's request.

According to the Guide of the General Directorate of Land Registry and Cadastre dated 1 February 2024, removal of the annotation before the period ends may also be requested after the Real Property Investment Certificate has been issued. In that case, the request is granted and the Provincial Directorate of Population and Citizenship is notified without delay. After the notification, the citizenship file may be re-examined. For this reason, if a sale before 3 years is being considered, the citizenship position should be assessed separately before the sale.

The three-year annotation and the 5-year capital gains period are independent of each other. The end of the annotation does not remove the tax: a citizenship residence sold in its 3rd year may be subject to capital gains tax because the 5 years have not passed, even though the annotation has been removed.

How does a foreigner selling property transfer the sale money from Turkey abroad?

A foreigner selling property in Turkey is free to transfer the sale price abroad through banks. Decree No. 32 on the Protection of the Value of the Turkish Currency expressly allows persons resident abroad to have the sale proceeds of their immovable property in Turkey transferred through banks (Art. 16/1).

Banks may request the title deed showing the source of the money, the receipt showing the sale price credited to the account and, where necessary, documents relating to the tax payment.

The Central Bank's Capital Movements Circular, in turn, defines the amount to be transferred as "the net amount remaining after tax and similar obligations have been deducted" from the sale price. For this reason, in a sale that triggers capital gains tax, the return and payment should be completed before the transfer.

The currency of the sale price also matters. Persons resident in Turkey cannot agree the price in foreign currency in property sales between themselves, except in cases determined by the Ministry of Treasury and Finance. Under Decree No. 32, residence depends not on the 6-month test in tax law but on having a legal domicile in Turkey.

A seller resident abroad is not covered by this prohibition. In a home sale to a foreigner resident in Turkey, the price can also be agreed in foreign currency. By contrast, a foreign seller resident in Turkey must set the price in Turkish lira when selling to a Turkish citizen buyer resident in Turkey.

Does a foreigner selling property in Turkey also pay tax in their own country?

Under most of the double taxation treaties signed by Turkey, the country where the property is located may also tax the gain from the sale of immovable property. The country where the seller is resident may also tax the same gain; in that case, the tax paid in Turkey may be credited against the tax in that country, depending on the treaty and that country's legislation. Some countries do not tax this gain at all under their own exemptions. The 5-year rule in Turkey does not automatically remove the seller's tax obligation in their own country.

The applicable rule varies according to the text of the treaty between the two countries and the tax legislation of the seller's country. For this reason, the special return filed in Turkey and the tax payment receipt should be kept. These documents prove the tax paid in Turkey in the seller's return in their own country and should be kept after the year of sale as well.

Which documents matter when selling property in Turkey?

When selling property, the purchase receipt, the foreign exchange purchase certificate (DAB), the title deed and the tax payment receipt are the key documents. Purchase documents determine the amount of tax, sale documents the content of the return, and payment documents the speed of the transfer. These documents can be divided into 4 groups:

• Documents on acquisition: title deed, purchase agreement, bank receipts for the purchase payment, foreign exchange purchase certificate (DAB).
• Documents on cost: estate agent and notary invoices, receipt for the title deed fee paid on purchase, report of actual handover.
• Documents on the sale: sale agreement, receipt showing the sale price credited to the account, receipt for the fee paid on sale.
• Tax and transfer documents: tax number, special or annual return, tax payment receipt, record showing there is no property tax debt.

Not all of these documents are needed in every sale. For an inherited flat, the certificate of inheritance matters instead of the purchase receipt; for a flat sold before 5 years have passed, the purchase receipt directly determines the amount of tax.

Conclusion: registration date and residence decide capital gains tax for a foreigner selling property in Turkey

The tax burden of a foreigner selling property in Turkey is determined not by nationality but by two facts: whether 5 years have passed from the title deed registration date and whether the seller is resident in Turkey. The first determines whether the tax arises; the second determines whether the return is filed in March or within 15 days.

For this reason, two properties sold at the same price can lead to completely different outcomes. One may be tax-free because it was inherited, while the other, sold in its 4th year, may carry both a high tax and a short filing period. A purchase price shown low on the title deed, a VAT exemption or a citizenship annotation changes the outcome further. The sale price, meanwhile, is transferred through banks and requires no separate permission.

For this reason, the land registry record, the purchase documents and the seller's residence status should be reviewed together before the sale price is discussed. A correction made after the sale can be more costly than a check made before the sale.