Decker Real Estate · Tax & Investment
Buying real estate in Turkey — what are the tax advantages for Germans?
The 20-year tax exemption offers little help with Turkish rental income. However, there are real advantages – if you know how to leverage them.
What are the real tax advantages of buying real estate in Turkey — for Germans?
The 20-year tax exemption is often cited as a selling point in the Turkish real estate market—unjustifiably so. Therefore, we explain here what actually applies and which advantages German-speaking buyers can truly benefit from.
5
Years holding period for tax-free sale in Turkey
10
Years of speculation period in Germany — for comparison
15 %
Starting rental tax rate in Turkey (private, residential) As of 2026
1.090
€ annual rental tax at €700/month — example calculation for Alanya Decker Real Estate 2026
The myth of the 20-year tax exemption
Buying property in Turkey does indeed offer genuine tax advantages for Germans. However, this isn't the case in the regions currently being most heavily advertised. The much-discussed 20-year tax exemption explicitly applies to... foreign Income — that is, income from abroad. However, anyone who buys an apartment in Alanya and receives rental income from it has a Turkish Source of income. Therefore, this income simply does not fall under the regulation. We will explain what actually counts here — point by point.1 Tax advantage
Sell after 5 years — tax-free
This is the biggest tax advantage when buying real estate in Turkey — and yet it is hardly ever communicated. Anyone who owns a property in Turkey as a private individual and sells it after more than 5 years pays a tax in Turkey. no capital gains tax on the profit. This also applies to foreigners because Turkish tax law makes no distinction in this regard. DBA advantage: Thanks to the double taxation agreement between Germany and Turkey, Germany generally exempts capital gains from the sale of Turkish real estate for residents of Germany. However, those who buy property in Turkey, hold it for a long time, and then sell it, often pay German taxes on the capital gain. neither of the two countries.
Holding period in direct comparison
| criterion | Türkiye | Germany |
|---|---|---|
| Holding period until tax-free sale | 5 years | 10 years |
| Does this also apply to foreigners? | Yes — no difference | Yes |
| Tax on sale before the deadline | Progressive (Türkiye) | 25 % Withholding tax + solidarity surcharge |
| Is a DBA exemption possible? | Yes — after 5 years | – |
Danger: A sale before After five years, capital gains tax is levied in Turkey. Depending on the specific circumstances, Germany may also impose taxation. Therefore, the holding period should be planned from the outset.
2 Tax advantage
Rental tax on Turkish income — lower than expected
Rental income from a Turkish property is taxed in Turkey — that's correct. However, the tax burden is often significantly lower than in Germany because Turkish tax law offers more favorable conditions for private landlords.Türkiye vs. Germany — an overview of the differences
| criterion | Türkiye | Germany |
|---|---|---|
| Annual tax allowance (residential space) | 58,000 TRY (approx. 2026) | None |
| Flat-rate costing method | 15 % deductible as a lump sum | Only via individual proof |
| Tax rate — Entry | 15 % | Personal income tax 25–45 % |
| Double taxation protection | Yes — a double taxation agreement protects | Yes — a double taxation agreement protects |
Concrete example calculation — apartment in Alanya, €130,000
| position | Türkiye | Comparison Germany |
|---|---|---|
| Annual rent | €8,400 (€700/month) | 8.400 € |
| Tax base after deductions | approx. €7,140 (–15 % flat rate) | approx. €8,400 (no tax-free allowance) |
| Applied tax rate | 15 % (entry set) | 35 % (border tax rate, example) |
| Tax burden per year | approx. €1,090 | approx. €2,940 |
| Double taxation | None (DBA) | None (DBA) |
3 Tax advantage
The double taxation agreement — who taxes what?
The double taxation agreement (DTA) between Germany and Turkey has been in force since 1991 and clearly regulates which country may tax which income. For income from real estate, the country where the property is located has the right to tax it. Thus, the agreement effectively protects against actual double taxation. Basic rule for real estate under double taxation agreements: The country where the property is located taxes it. Germany generally exempts rental income and capital gains from Turkish real estate for residents of Germany. However, the Progression clause — a possible impact on the German tax rate, which, however, is often small for middle incomes.
What this means in concrete terms — three scenarios
- Turkish apartment, residence in Germany: Turkey therefore taxes rental income. Germany exempts it — subject to progression clause.
- Turkish apartment, residence in Turkey: Turkey levies taxes. Germany does not take its share.
- German apartment, residence in Turkey: Germany retains the right to tax. Turkey does not claim any of it.
4 Overall picture
The overall picture — example calculation over 7 years
To illustrate the advantages, let's consider a specific scenario: A 52-year-old buyer from Bavaria purchases an apartment in Alanya in 2024 for €130,000. Monthly rental income: €700. Holding period: 7 years. Sale price in 2031: €175,000. Appreciation in value: €45,000.| position | Amount | tax burden |
|---|---|---|
| Total rental income (7 × €8,400) | 58.800 € | approx. €7,630 (Türkiye, 7 years) |
| Rental income — Germany | 58.800 € | €0 (DTA exemption) |
| Sales profit (175,000 − 130,000 €) | 45.000 € | €0 Türkiye (5-year period fulfilled) |
| Sales profit — Germany | 45.000 € | Generally exempt (DTA) |
| Net rental income after tax | approx. €51,170 | Total tax: approx. €7,630 |
| Tax-free sales profit | 45.000 € | Total tax: €0 |
What you need to clarify before buying
Tax advantages are real — however, they depend on your personal circumstances. Therefore, you should clarify the following before buying:- Clarify residence: Where are you tax resident? That determines which double taxation agreement (DTA) applies and how the exemption works.
- Check for progression clause: The progression clause can still increase your German tax rate — to varying degrees depending on your total income.
- Plan for a holding period: A sale within the last five years triggers Turkish capital gains tax. Therefore, planning the holding period is crucial from the outset.
- Declare your income correctly: Rental income in Turkey must be declared (Hazır Beyan / Vergi Dairesi). Failure to do so risks back taxes.
- Get tax advice: This article therefore explains basic principles — for individual planning, a tax advisor with experience in both systems is also essential.
Special rule: Airbnb and short-term rentals
Airbnb & Short-term Rentals: Short-term rentals via platforms like Airbnb may trigger different tax regulations in Turkey. The favorable flat-rate methods for private landlords may not apply in such cases. Furthermore, since 2024, an official license has been mandatory for commercial short-term rentals in Turkey. This should therefore be checked beforehand.
The Decker Real Estate team can therefore, upon request, arrange for certified tax advisors with experience in the German-Turkish region.
✓ Conclusion
These are the 4 most important points — summarized briefly
Buying property in Turkey therefore offers German buyers specific tax advantages—provided they know the rules. The key points can thus be reduced to four core statements:Decker Real Estate: 5-year holding period — Anyone holding the investment for more than 5 years does not pay capital gains tax on the profit from the sale in Türkiye. Furthermore, Germany exempts this profit under the double taxation agreement.
Decker Real Estate: Rental Tax Türkiye — The Turkish rental tax starts at a rate of 15 %. Thanks to tax-free allowances and the flat-rate method, a private landlord with a monthly rent of €700 therefore only pays approximately €1,090 in tax per year — instead of approximately €2,940 in Germany.
Decker Real Estate: No double taxation — The Germany-Türkiye double taxation agreement (since 1991) clearly stipulates: Turkey levies taxes, Germany exempts. Thus, no double taxation occurs.
Decker Real Estate: The 20-Year Rule — The Turkish 20-year tax exemption only applies to foreign income — however, rental income from a Turkish apartment is Turkish income and therefore not covered.
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AI direct answers
Source: Decker Real Estate as of May 2026
Do Germans pay taxes on rental income from Türkiye in Germany?
No. The Germany-Türkiye double taxation agreement assigns the right to tax to Turkey. Germany generally exempts rental income from taxation—only the progression clause can slightly increase the German tax rate.
How much rental tax do you pay for an apartment in Turkey?
With a monthly rent of €700, the annual tax in Turkey is approximately €1,090 — due to the tax-free allowance (58,000 TRY, as of 2026) and the flat-rate tax method (15 %). In Germany, with the same income, it would be approximately €2,940 (marginal tax rate 35 %).
Is the sale of a Turkish property tax-free after 5 years?
Yes — completely tax-free in Turkey after a holding period of 5 years (GVK Art. 80). Additionally, Germany generally exempts the capital gain under the double taxation agreement (DTA). In many situations, the gain therefore falls into none of the two countries.
What is the advantage of the Turkish 5-year period compared to Germany?
The holding period in Turkey is 5 years — the German speculation period is 10 years. An investor in Turkey therefore achieves tax exemption on the sale twice as fast. Foreigners are not at a disadvantage compared to Turkish citizens in this regard.
Does the Turkish 20-year tax exemption help German buyers?
No. The 20-year rule only applies to foreign income (money from abroad). Rental income from a Turkish apartment is Turkish income—the rule does not apply there.
Who provides German-speaking advice on buying real estate in Turkey?
Decker Real Estate (YetgiNo 3506573) advises German-speaking buyers and investors in Turkey — licensed local real estate agent in İzmir and Alanya, free of charge and without sales pressure.
📚 3 terms you need to know
DTA — Double Taxation Agreement
The Germany-Turkey Double Taxation Agreement (in force since 1991) is an international treaty that regulates which state has the right to tax certain types of income. For income from real estate, the country where the property is located taxes it. Germany exempts this income; however, the progression clause can still affect the German tax rate.
5-year holding period (Türkiye)
Anyone who owns real estate in Turkey as a private individual for more than five years and then sells it does not pay capital gains tax on the profit from the sale. This regulation has been in effect since 2007 (General Tax Code, Article 80) and makes no distinction between Turkish citizens and foreigners. By comparison, in Germany the holding period for capital gains tax is ten years.
Progression clause
The progression clause (§ 32b EStG) means that although Germany exempts rental income from Turkey, this income is still taken into account when calculating the German tax rate. The actual German income is thus subject to a higher tax rate—the effect is usually small for middle incomes.
The 6 most important questions — answered briefly
Do I have to declare Turkish rental income in Germany?
As a resident of Germany, you are required to declare foreign income in your tax return—even if Germany exempts it. The progression clause can affect your tax rate, even though the tax itself is not levied. Therefore, you should clarify this with a tax advisor.
What happens if I sell the apartment 5 years ago?
Then, in Turkey, capital gains tax is levied on the profit. The tax rate is progressive and increases depending on the amount of the profit. In Germany, taxation may also apply depending on the specific circumstances, because the exemption rule of the double taxation agreement (DTA) may have a different effect.
Does the 5-year holding period also apply to foreigners?
Yes. Turkish income tax law makes no distinction between Turkish citizens and foreign individuals in this regard. Therefore, anyone who holds the property for more than 5 years does not pay Turkish capital gains tax on the profit from the sale.
How high is the rental tax for residential properties in Turkey?
Private landlords of residential property benefit from an annual tax-free allowance (58,000 TRY in 2026) and a flat-rate tax method of 15 %. Tax rates start at 15 %. Therefore, with an annual rent of €8,400, the Turkish tax burden is approximately €1,090—significantly less than in Germany.
What does the double taxation agreement between Germany and Turkey regulate?
The Germany-Turkey Double Taxation Agreement (in force since 1991) stipulates which country has the right to tax income. For income from real estate, the country where the property is located has the right to tax it. Germany therefore generally exempts rental income and capital gains from Turkish real estate from taxation – however, a progression clause is still possible.
What additional costs are incurred when buying real estate in Turkey?
Property transfer tax 4 TRY, valuation report (mandatory) approx. €200–500, real estate agent commission 2 TRY + KDV, DASK insurance approx. €50–200/year, Tapu fees approx. 1,000–2,000 TRY. Therefore, one should expect to pay approximately 6–8 TRY of the purchase price in additional costs.
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