If you sell a property in Turkey you may be subject to capital gains tax – a tax on the increase in value of your property. But when does it apply and how much would you pay?

Unlike the UK, Turkey charges capital gains tax on your sole and main residence, your home, if you should sell it before a certain period of time.

Any property purchased since 2007 is subject to a five year period. Properties purchased before 2007 are subject to a four year period.

Any property sold within the capital gains period will be subject to tax based on the difference between the purchase and selling price less the stated inflation index for the period.

The tax rates are those stated by the tax office and range from 15 percent to 40 percent depending on the value of the gain achieved. The higher the gain the more tax is payable.

If you own more than one property and sell more than one property in any year you would be subject to the business rate of taxation which are again available from the tax office.

Even if you are domiciled in the UK for tax purposes any tax due is payable directly to the Turkish tax authorities.

However, as Turkey has a dual taxation agreement with the UK you should, in theory, not have to pay capital gains tax twice.

This article is intended to raise awareness of tax but you should always consult a suitably qualified advisor when planning your tax affairs.

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