Property-related taxes are covered in our expenses and costs article. In addition, Turkey imposes various other taxes, including income tax and capital gains tax. This article outlines the latest tax brackets and processes for 2025.
Income Tax in Turkey
The income tax declaration process requires taxpayers to submit their annual income tax return between the beginning and last day of March each year. The tax is payable in two installments: March and July.
2025 Tax Brackets
| Income Range (TRY) | Tax Rate |
|---|---|
| Up to 158,000 | 15% |
| 158,001 – 330,000 | 23,700 TRY + 20% of the excess |
| 330,001 – 800,000 | 58,100 TRY + 27% of the excess |
| 800,001 – 4,300,000 | 185,000 TRY + 35% of the excess |
| Over 4,300,000 | 1,410,000 TRY + 40% of the excess |
Capital Gains Tax (CGT)
When selling property, individuals must pay tax on the profit generated. The CGT is applied based on the non-employment income tax brackets outlined above. However, if the property is held for more than five years, the profit is tax-free.
Tax Calculation Example
For instance, if a property was purchased for 1,000,000 TRY in 2021 and sold for 3,000,000 TRY in 2025, the profit is 2,000,000 TRY. Based on tax brackets:
- The first 158,000 TRY is taxed at 15% = 23,700 TRY
- The next 172,000 TRY (158,001 – 330,000) is taxed at 20% = 34,400 TRY
- The next 470,000 TRY (330,001 – 800,000) is taxed at 27% = 126,900 TRY
- The remaining 1,200,000 TRY (800,001 – 2,000,000) is taxed at 35% = 420,000 TRY
However, Turkish tax law allows adjusting the purchase price for inflation based on government-published indices, significantly reducing the tax burden.
The Turkish tax authority allows property purchase prices to be adjusted based on CPI inflation rates. This adjustment reduces the taxable gain, effectively lowering the CGT liability. A useful online calculator for estimating tax liabilities is available at Hesapkurdu (Google Translate can assist with translation).
Corporate Tax for Property Investors
For companies purchasing property, corporate tax applies at a flat rate of 23% on profits, not on gross income.
Contact us for personal tailored advice
For personalized tax calculations and advice, contact Pera Property Management or consult your accountant.