[IrishJay]

Hi all,

Yet again im on the sponge for some advice, I have read different posts on this forum in relation to CGT but only in the context of UK property. Does anyone know what the situation is in Turkey?? Say for example I buy a property in Turkey as a holiday home/investment and decide to sel it in 2-3 years time Am I liable to pay CGT in turkey?? and if so what rate?? I had heard somewhere that individuals do not pay CGT in turkey but Im not sure if this is true. I am aware that I will be liable to CGT in Ireland for a property sale/profit in Turkey but was wondering is there also cgt to be paid in Turkey

Any advice would be very much appreciated.

[johnsonspad]

You will probably get better advise, but I was told when I was out last month that you pay tax if you sell within five years of purchase, don't know if this is true or not.

Brian

[Aegean2]

Try my blog

Capital Gains Tax is treated as a type of Income Tax in Turkey and you will have to pay the tax if you do't hold on to the property for 4 years. Too much info to post here, see the blog. I've tried to make the explanations less 'clunky' than the official link Joy is pointing to below.

[joy]

Hi Jay try this link to the turkish embassy in london under buying property.
You are liable for capital gains tax in turkey on any profit you make if you sell the property within 4 years.

www.turkisheconomy.org.uk

[allycat]

\FOUND THIS WHICH MAY BE OF INTEREST
Just a reminder, as of April 2007 (law no 5615) capital gains tax is payable if property is sold within 5 years. The effective date of commencement of the 5 year period is the date of tapu issue.

Property for this law includes land, offices etc.
From what i understood from the powers that be last year,they were gonna be shit hot on it-they have been working on all of the property lists all summer-to the point where Maliye were holding up the day to day workings of the tapu offices,much to everyones annoyance.Theyve hit it with the same vigour as the rentals investigations.
Its a domino effect cos theyre looking at prices stated on tapus and fining accordingly where discrepancies arise and checking whether builders declared tax on the build, etc etc.How long they will keep it up for is anyones guess,but as youve stated,the law stands

MAY BE A DAFT QUESTION WHO ARE THE "MALIYE" AND DOES ANYONE KNOW WHERE ARE THEY BASED OR HOW TO CONTACT THEM

[FJO25]

Except on new builds. You have a free year to sell tax free from date of Tapu issue, after this it is 8% of all profit. You will then have to wait another 5 years or pay the CGT.

[karinbea]

As far as I know Maliye is the ministry of finance, but I've no idea where to find them...they usually do find US, don't they?

[Peted1]

The Maliye is just down the road from the cemetery in town, been there, paid taxes after queuing for ages, not a speedy process in there at all, the queues generally go to the door, or beyond (all the queues).

[allycat]

Thanks for the info another forum is saying the capital gains tax is 35% that seems really high

[Faye]

Hi Jay,
If you keep the property for 5 years there are no CGT to pay. If you sell the property in this 5 year period, you would pay CGT due to the profit gained between the Selling and the Municipality price of the property. If the profit is equal or less than 6000YTL, there is no tax to pay. If the profit is between 6.000YTL - 7.000YTL the rate is 15%
between 7.000YTL - 18.000YTL the rate is 25%
between 18.000YTL - 40.000YTL the rate is 27%
over 40.000YTL then 35% of the income is due
I hope it answers your question.