Selling Property in Turkey as a Foreigner: Tax & Transfer

18 October 2026

Selling property in Turkey as a foreigner: the 5-year capital gains rule, 2026 tax rates and exemption, tapu fees and moving money abroad.

Foreigners are free to sell property in Turkey, and the sale proceeds, after tax and fees are deducted, can be transferred out of Turkey through a bank. The seller has two main costs to account for: the title deed (tapu) transfer fee, and, if the sale takes place within five years, the capital gains tax, known in Turkey as "value increase tax" (Değer Artışı Kazancı). In this article we explain when this tax applies, how it is calculated, what the 2026 rates are and what conditions apply to transferring money abroad.

What Costs Does the Seller Pay?

Title Deed Transfer Fee

Under Turkey's Fees Law (Law No. 492), the title deed transfer fee in 2026 remains 2% for the buyer and 2% for the seller, a total of 4%. It is calculated on the sale price declared at the land registry (tapu office). Turkish law firms warn that declaring a lower price than the real one to reduce the fee carries a risk of inspection and penalties. In addition, the price declared on the deed is also the basis for calculating your profit on a later sale. If you declared a low price when you bought, the profit shown on paper will be higher when you sell.

You have read the details of the buyer-side costs in the article Property Tax and Hidden Costs When Buying in Turkey.

Other Costs

• Real estate agent commission, if you sell through an agent
• Lawyer fees or power of attorney costs, if you are not in Turkey yourself
• Settling the property's outstanding obligations, such as annual property tax (Emlak Vergisi), building maintenance fees (aidat) and utility bills; we explain these costs in Annual Running Costs of an Apartment in Istanbul.
• Compulsory earthquake insurance (DASK) must be valid for the title deed transfer; we cover it in the DASK Earthquake Insurance Guide.

When Does Capital Gains Tax (Değer Artışı Kazancı) Apply?

Under Turkey's Income Tax Law, if an individual sells a property that they bought for money within five years of the date it was registered at the land registry, the resulting profit is subject to value increase tax. Key points:

• The five years start on the date the property was registered in your name at the land registry office, not on the date of the off-plan purchase contract.
• After a full five years, the profit from the sale is not subject to this tax, no matter how large it is. Based on the legal and tax sources we reviewed in October 2026, this rule has not changed in 2026.
• Inherited or gifted property (acquired without payment) is not subject to this tax.
• This tax applies to non-commercial sales; if buying and selling property is your business, different rules apply.

How Is the Taxable Profit Calculated?

The general formula that Turkish tax advisors explain, based on the guidance of the Turkish Revenue Administration (GİB), is:

Taxable profit = sale price − (purchase price + inflation adjustment + documented purchase and sale costs)

Inflation Adjustment Using the Producer Price Index

Your purchase price is updated using the domestic producer price index (Yİ-ÜFE), provided that the increase in this index between the month before purchase and the month before sale is at least 10%. With Turkey's high inflation, this adjustment usually removes a significant part of the "nominal profit" from the tax base. If the increase in the index is below 10%, no adjustment is made.

Deductible Costs

Documented costs related to the purchase and sale, such as the tapu transfer fee, the real estate agent's commission, notary and lawyer fees and valuation costs, are deducted from the profit. For this reason, keep all the receipts from the time of purchase.

Annual Exemption

In 2026, TL 150,000 of value increase gains is exempt (in 2025 this figure was TL 120,000). Tax applies only to the amount above this.

Tax Rates in 2026

The taxable profit is calculated using Turkey's progressive income tax brackets. The 2026 rates for non-salary income are as follows:

Each rate applies only to its own portion of the income, not to the whole amount.

Tax Return and Payment

For Turkish tax residents, the sale profit is declared in the annual income tax return, which is filed in March of the following year, and the tax is paid in two equal installments in March and July.

If you are not a Turkish tax resident (under the legal definition, someone whose domicile is not in Turkey and who has not stayed in Turkey continuously for more than six months in a calendar year), only the income you earned in Turkey is subject to Turkish tax, but the filing method and deadline for non-residents differ from those for residents. In addition, the double taxation treaty between Turkey and your country of residence may also have an effect. Before selling, be sure to review your situation with a licensed tax advisor in Turkey (Mali Müşavir).

Transferring the Sale Proceeds Out of Turkey

Under the Capital Movements Circular (Sermaye Hareketleri Genelgesi, May 2018) issued under Decision No. 32 on the Protection of the Value of the Turkish Currency, persons who are not resident in Turkey (Türkiye'de yerleşik olmayanlar) may freely transfer abroad through banks the net amount of the income and sale proceeds from property they own in Turkey, after tax and similar obligations have been deducted.

To make the transfer hassle-free:

• Have the sale proceeds paid into your own bank account in Turkey and avoid receiving large sums in cash.
• Keep the tapu, the contract and the receipts for tax and fee payments ready; the bank may ask for documents showing the source of the funds for the transfer.
• Keep the currency exchange receipt you received at the time of purchase (Döviz Alım Belgesi); it helps prove the lawful entry of the capital.
• Keep in mind that banking rules and sanctions may restrict direct transfers to certain countries, including Iran. Arrange the destination of the transfer with your bank in advance.

Selling Property and the Effect on Residence and Citizenship

• Citizenship: According to the Investment Office of the Presidency of Türkiye, an applicant for citizenship through a property purchase of at least $400,000 must commit not to sell the property for three years, and this commitment is annotated on the tapu. Selling before the end of this period is not possible. See the full conditions in the Turkish Citizenship Documents and Steps Guide.
• Property-based residence permit: A property-based residence permit is issued on the basis of owning the property. If you sell the property and own no other, the basis of your residence permit disappears, so you need to plan for another type of residence permit before selling.

What If You Are Not in Turkey?

Selling, like buying, can be done with a power of attorney, but in this case the power of attorney must expressly include the authority to sell and to receive the money. We recommend that the money be paid into your own bank account, not the lawyer's. We explain how to prepare a power of attorney in Buying Property in Turkey with a Power of Attorney.

Frequently Asked Questions

If I sell the property after five years, do I pay tax on the profit?

Under current law, no. A sale after a full five years from the date of registration at the land registry is not subject to value increase tax. Only the 2% tapu fee share and incidental costs remain.

When do the five years start counting?

From the date the property was registered in your name at the land registry office. In off-plan purchases, the contract date is not the starting point.

Can foreigners take the sale proceeds out of Turkey?

If you are not a Turkish resident, yes. Under the capital movements regulations, the net amount after tax and obligations can be transferred through a bank. Check the banking restrictions of the destination country separately.

Can I sell the property I used to get a Turkish passport?

After the three-year commitment period annotated on the deed ends, yes. Before that, a sale is not possible.

Free Consultation with ALO TURKEY

If you plan to sell your property in Turkey or to move your capital into another property, ALO TURKEY's Persian-speaking advisors can review the timing of the sale, the costs and alternative options in the property listings with you, and refer you to a licensed tax advisor to calculate the tax. Tax rules change every year; consult us before taking any step. Message us on WhatsApp or request a consultation via the contact page.

Sources: Turkish Revenue Administration (GİB), guides on property disposal and other income; 2026 income tax brackets and exemptions as reported by Forbes Türkiye, Bloomberg HT and KPMG Türkiye (rates announced for 2026); the 2026 guide to declaring property sale gains at Müşavirler Kulübü; the FFK Partner law firm on tapu fees and the 2026 changes; the 2018 Capital Movements Circular under Decision No. 32 (published text on Alomaliye and İşbank); Wise on the five-year rule; the Investment Office of the Presidency of Türkiye (Invest in Türkiye) on the three-year citizenship condition; all reviewed in October 2026.