Turkey: Finance/ Country Tax Policies
Income Tax
In the first sentence: If you sell your property in the five year period following the acquisition date, you are subject to personal income tax based on the difference between the selling price and the inflation adjusted acquisition price.
Same paraghraph last sentence: For sales by individuals after the five year period following the purchase, no personal income tax is charged on the gains to be attained.
Turkish income tax exempts some rental income from residential buildings for individuals annually. For the year 2008, the residential rental income up to YTL 2,400 is exempted from income tax.
| Cumulative Income ( YTL ) | Income Tax | ||
| Lower Limit | Upper Limit | ||
| 0 | 7,800 | 15% of the income | |
| 7,800 | 19,800 | YTL 1,170 for the previous slice plus | 20% of the rest |
| 19,800 | 44,700 YTL | 3,570 for the previous slice plus | 27% of the rest |
| 44,700 | - | YTL 10,293 for the previous slice plus | 35% of the rest |
Keep in mind that you must register with local tax office and declare your rental income. It must be declared between 1st and 25th of March and income tax must be paid in March and July in two equal instalments. You are supposed to immediately declare your capital gain as soon as a sale subject to personal income tax is carried out.
