The short answer: if you sell more than five years after the date you acquired the property at the land registry, no capital gains tax arises, however large the profit. If you sell within five years, the gain is calculated, the TRY 150,000 exemption for 2026 is deducted, and the remainder is taxed under the income tax tariff. For property received by inheritance or gift, no time condition applies at all.
This is the item sellers most often overlook. Everyone discusses the buyer's title deed fee, yet the filing obligation that lands in March after the sale rarely enters the conversation at the negotiating table. Below I set out the rule, the calculation, and the numbers through two worked examples.
Where the rule comes from
The basis is repeated article 80 of Income Tax Law No. 193. Excluding assets acquired without consideration, it treats the gain from disposing of real estate within five years of the acquisition date as a capital gain. Two consequences follow:
- Five years completed: the sale falls outside the article whatever the profit. No filing, no tax.
- Five years not completed: the gain is calculated. If it falls below the exemption there is still no tax, but you cannot know that without running the numbers.
- Inheritance or gift: acquisition without consideration falls outside the article and no time condition applies. Inheritance and transfer tax is a separate obligation.
When the five years start
As a rule, on the date of registration at the land registry. Three situations diverge in practice, and the distinction is explained in the Revenue Administration's Income Tax Circular Series No. 76:
- Where a construction servitude exists: the date that servitude was registered applies. Later conversion to full condominium ownership does not restart the clock.
- Where the property was handed over before registration: the date of actual use can be accepted as the acquisition date, provided it is evidenced by an allocation certificate, a delivery protocol, or utility subscriptions and invoices. In projects where the title deed is issued years after delivery, this works in the seller's favour.
- Where the property classification was corrected: in cases such as land reclassified as housing, the date of that correction is taken into account.
If any of these apply to you, count the period from the documents rather than from memory. A single month can be the line between a taxable and a tax-free sale.
If you built the house on your own plot, or gave the plot to a contractor for flats, the period does not start from the land's date. I explain this separately in selling a house you built in Turkey: when the 5-year rule starts.
How the taxable gain is calculated
The gain is not the full sale price. Repeated article 81 allows two deductions:
Indexation. The purchase price is increased by the rise in the domestic producer price index, excluding the month of sale. In practice: the index value for the month before the sale is divided by the index value for the month before the purchase, and the purchase price is multiplied by that factor. One condition matters: if the increase is below 10 percent, indexation cannot be applied. On short holding periods this threshold can bite.
Costs. Expenses arising from the disposal and borne by the seller, together with taxes and duties paid, are deductible. The seller's share of the title deed fee and a documented agency commission belong here. Without an invoice or receipt there is no deduction, so keep the transaction file.
The 2026 exemption: TRY 150,000
An annual exemption is deducted from the calculated gain. Under Income Tax General Communique Series No. 332, the amount in force from 1 January 2026 is TRY 150,000. The previous year it was TRY 120,000.
If the gain is below or equal to the exemption, the taxable base is nil, no tax is due, and no return is filed for that gain. If the gain exceeds it, only the excess is taxed.
How the remainder is taxed
The base left after the exemption enters the 2026 income tax tariff applicable to non-employment income:
| Tax base | Tax calculated |
|---|---|
| Up to TRY 190,000 | 15% |
| For the first TRY 190,000 of TRY 400,000 | TRY 28,500, excess at 20% |
| For the first TRY 400,000 of TRY 1,000,000 | TRY 70,500, excess at 27% |
| For the first TRY 1,000,000 of TRY 5,300,000 | TRY 232,500, excess at 35% |
| For the first TRY 5,300,000 above TRY 5,300,000 | TRY 1,737,500, excess at 40% |
One point deserves attention: this base does not stand alone. If you have other declarable income in the same year, rental income for instance, the brackets are assessed together and the higher rate is reached sooner.
Two worked examples
I have kept the index factors round in both examples. For your own calculation you must take the actual producer price index values for your purchase and sale months from the Turkish Statistical Institute. The rates below illustrate the method.
Example 1: no tax arises
- Purchase: TRY 2,400,000
- Sale: TRY 4,900,000, before the fifth year
- Index increase (illustrative): 95% → indexed cost TRY 4,680,000
- Seller's share of the title deed fee: TRY 98,000
Gain: 4,900,000 − 4,680,000 − 98,000 = TRY 122,000. That is below the TRY 150,000 exemption, so no tax is due and no return is filed. The TRY 2,500,000 difference on paper turns into a tax-free outcome once indexation is applied.
Example 2: tax arises
- Purchase: TRY 3,000,000
- Sale: TRY 6,200,000, in the second year
- Index increase (illustrative): 38% → indexed cost TRY 4,140,000
- Seller's title deed fee share and documented commission: TRY 248,000
Gain: 6,200,000 − 4,140,000 − 248,000 = TRY 1,812,000. After the exemption: 1,812,000 − 150,000 = TRY 1,662,000 taxable base.
Applying the tariff: TRY 232,500 on the first TRY 1,000,000, plus 35% on the remaining TRY 662,000, which is TRY 231,700. Total income tax TRY 464,200, roughly a quarter of the gain. Knowing that figure while setting the asking price is a very different position from learning it in March.
Filing in March, through the Ready Declaration System
For a sale made in 2026, the return is filed during March 2027 with the annual income tax return. The Revenue Administration's Ready Declaration System covers other gains and income as well, so you can complete the process electronically at dijital.gib.gov.tr. The assessed tax is paid in two equal instalments, in March and July.
The system already sees purchase and sale data from land registry records. Where no return is filed, the omission is usually detected by the administration and an invitation to explain or an ex officio assessment follows. Correcting the position voluntarily, before the administration acts, is considerably more favourable.
Four mistakes I see in the field
- Skipping indexation. Subtracting the raw purchase price from the sale price and calling the difference profit overstates the base substantially. In a high inflation period, indexation is the single most decisive item in the calculation.
- Not deducting costs. The seller's fee share and documented commission are deductible. No document, no deduction.
- Filing unnecessarily on inherited property. Acquisition without consideration produces no capital gain. I still see returns filed as a precaution, and they are not needed.
- Declaring a low price at the land registry. The seller appears to save on the fee at that moment, but the buyer faces a far larger base on a future sale because the recorded cost is low. I covered this separately in declaring a low price at the title deed office.
Frequently asked questions
If I sell before five years, do I always pay tax?
Do I pay capital gains tax on an inherited property I sell immediately?
When does the five-year period start?
It is my only home and I live in it. Is tax still due?
Can the cost always be indexed?
Where and when do I file?
Five-year rule and the exclusion for acquisition without consideration: Income Tax Law No. 193, repeated article 80.
Indexation, the 10 percent threshold and deductible costs: the same Law, repeated article 81.
The 2026 exemption of TRY 150,000 and the 2026 income tax tariff: Income Tax General Communique Series No. 332, in force from 1 January 2026. For exemption amounts by year, Revenue Administration, Useful Information.
Acquisition date, construction servitude and actual delivery: Income Tax Circular Series No. 76, 25 March 2011.
Index series used for indexation: Turkish Statistical Institute, Domestic Producer Price Index bulletins.
Filing channel: Revenue Administration Digital Tax Office and Ready Declaration System.
This article is general information, not tax advice. Amounts and the tariff are redetermined each year. Before a specific sale, I recommend having your calculation confirmed by your accountant.