Yes. Turkey has an extensive network of double taxation treaties (DTTs) that allocate taxing rights on income connected with Turkish property and provide relief to avoid the same income being taxed twice in two countries. These treaties typically allow Turkey to tax rental income and capital gains arising from immovable property located in Turkey, while your country of tax residence grants a credit or exemption under the treaty’s elimination-of-double-taxation article. The specific result depends on the treaty between Turkey and your country of residence and your tax residency status under Turkish law and the relevant treaty.
Legal basis and Turkey’s treaty network
Under Turkish domestic law, individuals who are tax resident in Turkey are taxed on worldwide income, while nonresidents are taxed only on Turkish-source income; residence is determined by domicile or a continuous stay of more than six months in a calendar year, subject to statutory exceptions in Article 4 of the Income Tax Law No. 193 [1]. Income from immovable property in Turkey is categorized as real property income and is taxable in Turkey under Articles 70 and related provisions of Law No. 193, and capital gains from disposal of real estate are taxable if the sale occurs within five years of acquisition for individuals, under Article 80; corporate sellers are taxed on gains under Corporate Tax Law No. 5520 [1][4]. Turkey has signed bilateral DTTs broadly based on the OECD Model Tax Convention, and the Revenue Administration maintains the official list of treaties in force [3][2].
How treaties allocate taxing rights for rental income and sale gains
In virtually all of Turkey’s DTTs, the article corresponding to Article 6 of the OECD Model provides that income from immovable property may be taxed in the state in which the property is situated. This means Turkey retains the right to tax rental income arising from property located in Turkey, regardless of the owner’s country of residence, subject to the treaty’s definitions and any administrative procedures to claim benefits [2][3]. For disposals, the article corresponding to Article 13 of the OECD Model generally allows gains from the alienation of immovable property to be taxed in the state where the property is located, so Turkey may tax such gains under its domestic rules, including the five-year exemption threshold for individuals in Law No. 193 [2][1]. Corporate owners remain within the corporate tax regime under Law No. 5520, with treaty allocation rules not displacing domestic computation and filing obligations [4][3].
Relief in the residence country and documentation requirements
Although Turkey may tax Turkish-located property income under the treaty, the elimination of double taxation article, typically corresponding to Article 23 of the OECD Model, requires the owner’s country of residence to relieve double taxation, often through a foreign tax credit for Turkish tax paid or, in some treaties, an exemption method. The precise method and limits, including credit caps, are set by the specific bilateral treaty and the residence country’s domestic law implementing the treaty [2][3]. To use treaty benefits, authorities commonly require proof of residence and proof of tax paid. For non-Turkish residents, a certificate of tax residence from the home tax authority and Turkish tax assessment and payment receipts are the standard evidentiary documents requested by tax administrations when granting credits or exemptions under their treaty with Turkey. The Turkish Revenue Administration’s treaty portal confirms that treaty relief follows the bilateral agreement text and applies to taxes on income and capital covered by the treaty [3][2]. Because mechanics differ by jurisdiction, a licensed tax adviser in your residence country should confirm documentation and filing steps for your specific case.
What DTTs do not cover: property tax and transaction charges
Double taxation treaties focus on taxes on income and on capital of a specified kind, as set out in each treaty’s scope article, and do not generally cover Turkey’s annual real estate tax (emlak vergisi) or one-off transactional charges unless expressly listed in a particular treaty. The Real Estate Tax Law No. 1319 imposes an annual municipal property tax on owners at rates set in law, and this liability applies irrespective of treaty residence because it is not an income tax and is not typically a covered tax under DTTs [5][3]. Likewise, notarial fees, title deed fees, value added tax where applicable, and municipal charges arise under Turkish domestic legislation and are unaffected by income tax treaties, which address income and capital taxation rather than administrative fees or indirect taxes, unless a treaty’s text explicitly includes them. Owners should therefore separate their analysis of income tax exposure, where treaties are central, from local property tax and fee obligations determined solely by Turkish law [5][3].
Residency status and filing in Turkey
Whether you are considered resident or nonresident in Turkey determines filing and assessment mechanics for Turkish tax on property income. Under Law No. 193, residents are taxed on worldwide income and must file in Turkey accordingly, while nonresidents are taxed on Turkish-source income, including rent from Turkish property and taxable gains on disposal, and are required to file returns for such income in Turkey within statutory deadlines set by the Revenue Administration [1][3]. For individual sellers, the five-year rule in Article 80 of Law No. 193 exempts gains realized after five years from personal income tax, but gains within five years are taxable; this domestic rule operates before any residence-country relief is considered under the treaty [1][2]. Corporate owners compute and pay corporate tax on rental profits and gains under Law No. 5520, with returns filed to the Turkish tax office per the Corporate Tax Law and implementing secondary legislation [4][3]. The Presidency of the Republic of Türkiye Investment Office provides an overview of income tax and residency concepts for foreign investors, which aligns with these principles and can guide initial scoping before seeking tailored advice [6].
Practical coordination between countries’ tax authorities
In practice, treaty relief is achieved by correct filing in both jurisdictions, supported by documentation. In Turkey, owners declare rental income and, if applicable, gains on sale according to Law No. 193 or Law No. 5520, pay the assessed tax, and retain official receipts. In the residence country, owners claim a credit or exemption under the bilateral treaty’s elimination article by providing a tax residence certificate and Turkish tax proof, following the procedures of that jurisdiction’s tax authority. The OECD Model framework underpins the allocation and relief rules used in Turkey’s bilateral treaties, and the Turkish Revenue Administration recognizes these mechanisms across its treaty network [2][3]. Because misclassification of residency, timing mismatches, and limitations on foreign tax credits can lead to unexpected liabilities, professional confirmation is recommended for any cross-border return that includes Turkish property income. This information is general; consult a licensed tax adviser in both Turkey and your country of residence for advice on your specific situation.
Related Questions:
– Q2 (How is rental income from Turkish property taxed for nonresidents?)
– Q3 (Do I owe capital gains tax when selling Turkish real estate?)
– Q4 (Which taxes apply to owning property in Turkey each year?)
– Q5 (How does Turkish tax residency affect property income reporting?)
References:
[1] Official Gazette (Resmi Gazete). “Income Tax Law No. 193.” https://www.mevzuat.gov.tr/MevzuatMetin/1.4.193.pdf
[2] OECD. “Model Tax Convention on Income and on Capital (Condensed Version).” https://www.oecd.org/tax/treaties/model-tax-convention-on-income-and-on-capital-condensed-version-20745419.htm
[3] Turkish Revenue Administration (Gelir İdaresi Başkanlığı). “Double Taxation Agreements.” https://www.gib.gov.tr/en/international-taxation/double-taxation-agreements
[4] Official Gazette (Resmi Gazete). “Corporate Tax Law No. 5520.” https://www.mevzuat.gov.tr/MevzuatMetin/1.5.5520.pdf
[5] Official Gazette (Resmi Gazete). “Real Estate Tax Law No. 1319 (Emlak Vergisi Kanunu).” https://www.mevzuat.gov.tr/MevzuatMetin/1.3.1319.pdf
[6] Presidency of the Republic of Türkiye, Investment Office. “Taxes on Individuals and Companies.” https://www.invest.gov.tr/en/investmentguide/pages/taxes.aspx
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice. Property law and tax rules in Turkey change frequently. Consult a licensed Turkish lawyer, accountant, or real estate professional before making any purchasing decision.