Profit tax warning for those who sell their house before the end of 5 years!

Profit tax warning for those who sell their house before the end of 5 years!
17 March 2020

The difference between the purchase and sale prices is applied with the “real estate capital gains tax rates” for the citizens who sell the property they purchased before 5 years. While the experts on the relatively little-known tax warn the citizens, it is stated that those who show low purchase price to pay title deed fees face additional taxes and penalties.

*** This release is originally published in Turkish.
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ISTANBUL (TR) - According to Article 80 of the Income Tax Law, except for the inherited or donated houses; If all houses bought and acquired are sold within 5 years, the total earnings are taxed. The “real estate capital gains tax rates”, which is less known among citizens, affects those who show low housing value especially in order to pay the title deed fee, while causing additional fines.

How is real estate capital gains tax rates calculated?

According to the statement made by the online loan comparison platform, while calculating the tax in question, the previous purchase value of the house is adjusted according to inflation and its present value. Then, the difference between the buying value and the sales value of the house is calculated and the real earnings, independent of inflation, are revealed. From this gain, if the exception amount announced each year, the title deed fee paid during the purchase and the housing loan were used, the sum of the interests paid until the sale of the house is deducted. The deduction from the remaining taxable amount is called the real estate capital gains tax rates. The calculation of the tax, which many landlords do not know, is also quite complex. In order to calculate the real estate capital gains tax rates, which is determined according to many variables, a declaration can be submitted to the Revenue Administration while calculating online on

“Those who have low deed fees pay more tax”

Stating that some sellers show low sales value declared in the land registration, Co-Founder Onur Tekinturhan said, “This way, the owners are trying to pay lower taxes by hiding the profit they make between buying and selling. If the situation is determined, the title deed fee is rearranged and the missing amount is collected and a penalty is applied for misrepresentation. Displaying the sales price incomplete is not only a problem for the seller but also for the buyer. When the person who bought the house wanted to sell the house in 5 years, when he declared the real value to the title deed, it seems that he made more profit due to the difference of purchase and sale. Tax amounts paid due to this high profit are also multiplied.”

“Make the right statement when buying or selling housing to avoid paying additional taxes”

Onur Tekinturhan, who clarified the relationship between the payment of title deed fees and real estate capital gains tax rates on housing purchase, continued as follows “While selling his home for 400.000 TL in December 2019, this time he should declare 400.000 TL which is the correct value due to penalties and sanctions. In this case, since the profit in between will be 250.000 TL on the paper, the seller must pay approximately 21.000 TL in value gain tax. If the person stated the real price to the title, 250.000 TL, while buying the house, he would not pay any increase in income tax due to the exception amount and the difference in inflation. By paying only the title deed fee, he would not be under a big expense. At this point, we recommend that the title deed fee is declared correctly and that there is no distortion in this amount while buying or selling a house.”

Contact: Tülay Genç | [email protected] | +90 (850) 885 12 55