Capital Gains, Inheritance and Gift Tax

Information on the capital gains, inheritance and gift tax due by residents of Turkey...

Capital gains tax is included in general taxable income as described above. The following are exempt from capital gains tax:

  • Gains made by selling shares traded on the Istanbul stock exchange, if they have been held for at least one year
  • Gains made by disposing of shares in a Turkish resident company, if they have been held for at least two years
  • Shares that were inherited or received as a gift

Capital gains tax from Turkish financial institutions or banks is paid net of a ten percent withholding tax. If withholding tax has been paid, the gain does not need to be declared on an income tax return.

Inheritance and Gift Tax

In Turkey, a progressive tax is applied to items which have been acquired either through an inheritance or as a gift. Gift tax rates range from 10 to 30 percent of the item's appraised value. Inheritance tax rates range from one to ten percent of the amount inherited. The amount to be paid depends on the value of the gift or inheritance and the nature of the relationship between the two parties involved. Both taxes are paid in twice-yearly instalments for three years.

When property is inherited, any tax paid on it in another country is deducted from its taxable value. Individuals need to declare gifts and inheritances so that the tax due can be assessed.

Further Information

 

Disclaimer

Any statements concerning taxation are based upon our understanding of current taxation laws and practices in Turkey which are subject to change. While every effort has been made to offer information that is current, correct and clearly expressed the publisher is not responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. Readers are encouraged to seek professional advice concerning specific matters before making any decision.