Some people get confused regarding the stamp tax and profit tax in Turkey, especially while selling the property, despite the obvious difference between them.
Profit tax is imposed on the amount of capital gain from the sale of real estate in Turkey, while stamp tax is imposed at 2.2% on both the seller and the buyer when selling the property.
This type of tax is imposed on real estate sold less than five years after its purchase, but if the sale is after 5 years of ownership, you will be exempted from the tax.
How is Profit Tax Calculated in Turkey?
Profit tax in Turkey is calculated by subtracting the sale value of the property from the original purchase value, so only the amount of profit from the basic capital is subject to tax.
Here, we would like to point out that the real estate that is exempted from the capital gain tax, is that the amount of capital gain when sold is less than 6000 Turkish liras.
Profit Tax Rate of The Capital Gain
The value of the tax paid according to the value of the capital gain differs from the sale of real estate in Turkey, and it is as follows:
- 15% if the profit rate for selling the property ranges between 6000 to 7000Turkish liras.
- 25% if the profit rate for selling the property ranges between 7000 to 18.000 Turkish liras.
- 27% if the profit rate for selling the property ranges between 18.000 to 40.000 Turkish liras.
- 35% if the profit rate for selling the property is more than 40.000 Turkish liras.
Finally. If you sell a property in Turkey less than 5 years after its purchase, you must calculate the amount of profit from the capital after subtracting the value of the property at the time of purchase from its value during the sale, after looking at the title deed to verify the date of purchase.
To ensure accurate calculations of the amount of profit, contact us at Trustus and get a free consultation on profit tax in Turkey, to calculate the value accurately according to the profit rate.
Edited by: Trustus Consulting©
