Capital Gains Tax in Turkey for Foreign Individuals and Companies

A foreign individual selling Turkish real estate, a founder transferring shares in a Turkish company and a foreign corporate investor disposing of a Turkish participation may therefore face different tax calculations, filing procedures and exemptions.

For individuals, taxable disposal gains are generally classified as değer artışı kazancı under the Turkish Income Tax Law. Companies normally include capital gains in ordinary corporate taxable income, subject to any available participation or historical real estate exemption.

Capital Gains Tax at a Glance

Residents and Non-Residents: Why Status Matters

Individuals treated as resident taxpayers in Turkey are generally taxable on worldwide income, including taxable gains from assets located abroad. Non-resident individuals are generally taxable only on gains considered Turkish-source.

For corporate taxpayers:

• a company whose legal seat or business centre is in Turkey is generally taxable on worldwide corporate income; and
• a foreign company with neither its legal seat nor business centre in Turkey is generally taxed only on Turkish-source corporate income.

Qualifying individuals who became Turkish tax residents from 1 January 2026 may need to consider Turkey’s separate exemption for certain foreign-source income and gains. This regime does not exempt Turkish-source disposals. See our guide to Turkey’s 20-Year Foreign Income Tax Exemption.

Capital Gains on Turkish Real Estate for Individuals

When an individual acquires Turkish real estate for consideration and sells it within five years, the resulting net gain is generally subject to income tax. The rule can apply to residences, commercial property, land and specified property rights.

A sale after the five-year period is generally outside capital gains taxation, provided the activity has not become a commercial property-trading business.

How the Five-Year Period Is Calculated

The acquisition date is usually determined from the title deed registration. Different rules can apply to newly constructed property, cooperative allocations, land-for-flat arrangements and property where possession occurred before title registration.

The exact acquisition date should therefore be confirmed from the title deed, construction records, occupancy documentation, invoices and payment evidence before relying on the five-year exemption.

Inherited or Gifted Property

Gains from the disposal of property acquired without consideration, including property inherited by the seller, are generally outside the individual capital gains provisions. Inheritance or gift tax obligations arising when the property was originally received are separate from the later sale.

How Is an Individual Property Gain Calculated?

The calculation generally begins with the sale proceeds and deducts the indexed acquisition cost, qualifying disposal expenses, taxes and charges borne by the seller.

The acquisition cost can be indexed using the Turkish Domestic Producer Price Index, known as Yİ-ÜFE, when the increase between the relevant acquisition and disposal indices is at least 10%.

The index for the month preceding acquisition is compared with the index for the month preceding disposal. The resulting indexed cost is used instead of the historical purchase amount.

The 2026 Individual Capital Gains Exemption

For qualifying gains realised during 2026, the general annual exemption is TRY 150,000. Only the portion of the aggregate qualifying net gain exceeding the exemption is included in the income tax base.

The exemption is annual rather than transaction-based. Several disposals during the same year must therefore be considered together.

Individual Income Tax Rates for 2026 Capital Gains

Taxable capital gains included in an individual’s annual return are combined with other income subject to declaration and taxed under the non-employment income tariff.

The rate applies progressively. Reaching a higher bracket does not cause the entire taxable gain to be taxed at the highest rate.

Selling Shares in a Turkish Company as an Individual

The tax result depends significantly on the legal form of the company and whether the ownership is represented by a qualifying security.

Joint-Stock Company Shares

For an individual, gains from disposing of qualifying joint-stock company share certificates held for more than two years may fall outside Turkish income tax.

Properly issued temporary share certificates may also qualify. The company should retain the board resolution, printing or issuance records, share ledger entries and delivery evidence demonstrating when the certificate was issued and acquired.

If the ownership is not represented by qualifying share certificates, the disposal may instead be treated as a taxable transfer of participation rights regardless of how long the interest has been held.

Limited Liability Company Interests

An interest in a Turkish limited liability company is not treated in the same way as a certified joint-stock company share. A gain from transferring LLC participation rights is generally taxable for an individual regardless of the holding period.

The indexed acquisition cost, directly connected expenses and the annual general exemption may be considered when calculating the taxable amount, subject to the applicable conditions.

Listed Shares, Funds and Other Securities

Gains from listed shares, bonds, investment funds and other capital-market instruments can fall under the withholding regime in Provisional Article 67 of the Income Tax Law.

The treatment can depend on:

• the type of security or fund;
• whether the asset is traded through a Turkish intermediary;
• the acquisition date;
• the investor’s residence and legal status;
• the holding period; and
• the withholding rate in force on the relevant date.

Because financial-instrument withholding rates can change and some withheld gains are not included in an annual return, the instrument and transaction date should be checked separately instead of applying the ordinary property-sale rules.

Capital Gains Earned by Turkish Companies

Capital gains earned by a Turkish company are generally included in ordinary corporate taxable income. The general corporate income tax rate for 2026 is 25%, although different rates apply to specified financial-sector and project companies.

The gain is normally calculated by deducting the asset’s tax book value and qualifying disposal costs from the sale proceeds.

Sale of Participation Shares by a Company

A 50% corporate tax exemption may apply to gains from the sale of qualifying participation shares held in the company’s assets for at least two full years.

The principal conditions generally include:

• holding the shares for at least two full years;
• recording the exempt portion in a special equity reserve;
• retaining that reserve for the required five-year period;
• collecting the sale consideration by the end of the second calendar year following the sale year;
• not transferring or withdrawing the exempt amount contrary to the statutory conditions; and
• not being engaged in the ordinary business of trading the relevant shares.

The exemption rate was reduced from 75% to 50% with effect from 27 November 2024. The transaction should also be tested under the domestic minimum corporate tax rules.

Sale of Real Estate by a Company

The general corporate tax exemption for real estate acquired on or after 15 July 2023 was abolished. Gains from selling such property are generally fully included in corporate taxable income.

For qualifying real estate acquired and recorded before 15 July 2023, a transitional 25% capital gains exemption may remain available where the two-year holding, collection, special reserve and business-purpose conditions are satisfied.

Foreign Companies Selling Turkish Assets

A foreign company without its legal seat or business centre in Turkey is generally taxable only on Turkish-source income. The filing mechanism depends on whether the gain is attributable to a Turkish permanent establishment.

• If the asset is connected with a Turkish permanent establishment, the gain may be included in the establishment’s ordinary corporate tax return.
• If a non-resident company earns a Turkish-source disposal gain without a permanent establishment, a special corporate tax return may be required.
• For covered gains, the special return can be due within 15 days of realisation rather than under the ordinary annual filing calendar.

Before a foreign company sells Turkish real estate or unlisted Turkish company shares, the parties should determine the taxpayer, competent tax office, declaration deadline and treaty position.

How Double Taxation Treaties Can Change the Result

Turkey’s double taxation treaties generally contain a separate capital gains article. The wording is not identical in every treaty.

Depending on the agreement, Turkey may retain taxing rights over:

• Turkish real estate gains;
• shares deriving substantial value from Turkish real estate;
• assets forming part of a Turkish permanent establishment;
• shares sold before a treaty-specific holding period has expired; or
• other gains expressly allocated to the Turkish source state.

Treaty protection is not established merely by showing a foreign address. The seller should obtain a current tax residence certificate and provide the original and certified Turkish translation where required.

Our Turkish Tax Advisory Services support the review of domestic capital gains rules, applicable treaty provisions and filing requirements before a disposal is completed.

Individual Filing and Payment Calendar

A taxable individual capital gain realised during 2026 is generally declared between 1 and 31 March 2027. The resulting income tax is generally paid in two instalments:

• the first instalment by the end of March 2027; and
• the second instalment by the end of July 2027.

An individual leaving Turkey permanently during the calendar year may have an accelerated filing deadline before departure. Corporate and special-return deadlines must be determined separately.

Documents to Keep Before and After a Sale

• purchase and sale contracts;
• title deed or trade registry records;
• bank payment and collection documents;
• invoices for directly connected acquisition or disposal costs;
• Yİ-ÜFE indexation calculation;
• share ledger and share certificate issuance records;
• company resolutions approving the transfer;
• tax book value and accounting records;
• tax residence certificate and certified translation;
• the applicable treaty analysis; and
• documents supporting any exemption claimed.

Common Capital Gains Tax Mistakes

Transactions should be reviewed before the sale agreement and payment structure become fixed. Our Strategic Tax Planning Services in Turkey can compare the expected tax, documentation and cash-flow consequences of a planned disposal.

Official Sources

• Turkish Revenue Administration: Income Tax Law No. 193
• Turkish Revenue Administration: Capital Gains and Incidental Income
• Turkish Revenue Administration: 2026 Guide to Property Sold Within Five Years
• Turkish Revenue Administration: Corporate Tax Law No. 5520
• Turkish Revenue Administration: 2026 Corporate Tax Return Guide

Last reviewed: 11 August 2026. This article provides general information and does not constitute tax or legal advice. Capital gains treatment depends on residence, asset type, acquisition date, holding period, transaction frequency and the applicable double taxation treaty.