Taxation

Annual Property Tax: paid to the local Government, at the rate of 0.3% of the declared value of the property. Revaluation is conducted by the local Government every 5 years. It is around £60-$100 per annum, and usually paid in two instalments (May and November). (New properties are exempt from Annual Property Tax for 5 years).

Taxes due on Rental Income:

If the rental income is less than 2,200 TL per annum no tax is due, above that income the following percentages apply:

  • 
Between 2,200 TL 7,000 TL 15% of the income is due
  • Between 7,000 TL 18,000 TL 25% of the income is due
  • 
Between 18,000 TL 40,000 TL 27% of the income is due
  • Above 40,000 TL 35% of the income is due

Capital Gains Tax:

Capital gains made from the sale of a property are taxable. However, individuals do not have to pay Capital Gains Tax provided they have owned said property for more than 5 years. Should the property be sold within this time period the rates for Capital Gains Tax are detailed below:
If the profit is equal or less than 6,000 TL there is no tax, however above this ceiling the following percentages apply:

  • Between 6,000 TL 7,000 TL 15% of income is due
  • Between 7,000 TL 18,000 TL 25% of income is due
  • Between 18,000 TL 40,000 TL 27% of income is due
  • Above 40,000 TL 35% of income is due

VAT:

on the sale of property is 18%. But sales of houses which are below 150 meter square in net area are subject to 1% VAT. If an immovable is owned by a company in Turkey, than selling this immovable after having held for 730 days (2 full years) might not be subject to VAT and corporate tax. This exemption also depends on some other conditions.

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