Taxes When Selling a Home: Title Deed Fee and Capital Gains Guide

04 November 2026

Photo: Châu Thông Phan, CC0

When you sell a home, the sums involve more than the sale price. The seller pays a fee at the land registry. If the seller sells before five years have passed since acquiring the home, the gain may be subject to income tax. In this article we explain the main taxes and fees that affect sellers, using the information we have been able to verify as of 2026.

Title deed fee: the seller pays too

The title deed fee (tapu harcı) is charged according to the tariff attached to Fees Law No. 492 and is assessed separately on the buyer and the seller. At the time of writing (November 2026), the rate applied to sales is 20 per mille, i.e. 2 per cent, for each party. The total burden is therefore 4 per cent. Although bills to reduce the rate have been put forward, we have not identified any reduction that has come into force. Check the General Directorate of Land Registry and Cadastre's fee calculation on the date of your transaction.

The fee is calculated on the sale price declared at the land registry. This price cannot be lower than the property's value for property tax purposes. Declaring less than the actual sale price can lead to the unpaid fee later being assessed together with a tax loss penalty. It can also work against the seller in the capital gains calculation. In addition to the fee, the land registry office charges a revolving fund fee (döner sermaye). The parties can agree in writing in the brokerage agreement how the fee and the revolving fund fee will be shared.

What is capital gains?

Under repeated Article 80 of the Income Tax Law, the gain from disposing of a property acquired for consideration, i.e. in return for payment, within five years of the acquisition date is subject to income tax as capital gains (değer artış kazancı). Sales made after five years have passed do not give rise to tax under this heading.

• The acquisition date is, as a rule, the date of registration at the land registry. In special cases such as flat-for-land agreements and cooperatives, different dates may apply. The Revenue Administration's guides explain these cases separately.
• Disposal does not cover only sales. Barter, exchange, expropriation and contribution to a company as capital are also included.
• The gain is calculated by deducting from the sale price the acquisition cost and the taxes, fees and expenses borne by the seller.

Inflation (Yİ-ÜFE) indexation

In a period of high inflation, indexation is the most important part of the calculation. The acquisition cost can be increased by the rate of increase in the Domestic Producer Price Index (Yİ-ÜFE) published by the Turkish Statistical Institute, excluding the month of disposal. There is, however, a condition. Indexation is only possible if the rate of increase over this period is 10 per cent or more. When the condition is met, the cost is updated and the taxable gain can fall considerably. In the inflationary climate of recent years, there have been cases where the gain after indexation turned out to be very low, or did not arise at all. Do not assume this without having the calculation done for your own transaction.

Exemption amount

A certain amount of capital gains earned in a calendar year is exempt from income tax. The amount is set anew each year. According to the Revenue Administration's 2026 guide and Income Tax General Communiqué Serial No. 332, the exemption is TRY 150,000 for gains earned in the 2026 calendar year. The exemption is not applied to each sale separately but once to the total gain for the year. Only the excess is declared. If your sale slips into 2027, that year's amount will apply. Check this separately.

Property acquired by inheritance

Capital gains only covers property acquired for consideration, i.e. in return for payment. The law explicitly excludes property acquired without consideration. As a result, the gain from selling a home acquired by inheritance or gift is not taxed as capital gains, even if it is sold before five years have passed. If one share of a property was bought and another share was inherited, each share is assessed separately. The sale of the purchased share within five years may be taxable. The inheritance itself is subject to inheritance and transfer tax. Consult your tax office about the filing period and exemptions for this tax.

When to declare and pay

Capital gains are declared on the annual income tax return in March of the year following the year in which they were earned. The tax calculated is paid in two equal instalments in March and July. For example, a gain above the exemption from a sale made during 2026 is declared in March 2027. The return can be filed through the Revenue Administration's pre-filled return system. The tax is calculated according to the progressive income tax schedule. If you have other income subject to declaration in the same year, your total tax burden may be affected by it.

Common mistakes in the calculation

A few points are frequently got wrong when calculating capital gains:

• Declaring a low price at the land registry: If an amount below the actual price was declared at the land registry when buying, the acquisition cost will also look low when selling. This can artificially inflate the taxable gain. Keep the contract and bank records showing the actual purchase price.
• Forgetting expenses: Documented taxes, fees and disposal costs borne by the seller can be deducted from the gain. Expenses paid by the buyer cannot.
• Overlooking the indexation condition: If the 10 per cent condition is met, indexation can reduce the gain significantly. If not, the unindexed cost is used.
• Mixing up the year: The exemption amount is applied according to the calendar year in which the gain is earned. If the sale date falls between late December and early January, work out in advance which year's amount will apply.

For detailed examples, see the Revenue Administration's Guide to the Taxation of Other Earnings and Income (in Turkish).

Checklist before putting your home on the market

1. Confirm the acquisition date and method of acquisition (purchase, inheritance, gift) from your title deed record.
2. Keep the documents showing the purchase price (title deed fee receipt, contract, bank transfer receipts).
3. If the five years are about to be completed, you may want to plan the sale date accordingly. Have the five-year calculation checked by a certified public accountant.
4. Have the likely tax burden after indexation and the exemption calculated before the sale.
5. Declare the actual price at the land registry. This is the safest course for both the fee and income tax.

Frequently asked questions

Do I pay tax if I sell after five years?

If you sell a home acquired for consideration after five years have passed, the sale does not give rise to capital gains. The seller's share of the title deed fee, however, is paid regardless of how long you have owned it.

Is there tax if I sell an inherited home straight away?

The sale of property acquired by inheritance is not within the scope of capital gains. The title deed fee is still paid. Check your inheritance and transfer tax obligations for the transfer of the inheritance separately.

Is the exemption applied to each sale separately?

No. The exemption is applied once to the total capital gains earned in a calendar year. For 2026 the amount is TRY 150,000.

Is indexation always possible?

No. The rate of increase in Yİ-ÜFE, excluding the month of sale, must be 10 per cent or more. If this condition is not met, the cost is not indexed.

If you would like to discuss your sale plans in terms of price and timing, you can use our let us assess your property page.

This article is for general information only; please confirm current amounts and conditions with the relevant authority or a legal adviser.