When is a property sale subject to capital gains tax?

If the property is sold within 5 years of acquisition, a taxable capital gain arises. Sales after 5 years are not subject to this tax (inheritance/gift acquisitions are assessed separately).

How is PPI indexation applied?

The purchase cost is uplifted by the ratio of PPI indices for the month before sale and before purchase. But if that increase is below 10%, no indexation is applied and the cost stays as is.

What is the 2026 capital gains exemption?

For 2026, the exemption for capital gains on property and rights is ₺150,000. The portion above the exemption is subject to income tax. It does not apply to securities gains.

Capital Gains Calculator (2026)

Compute capital gains on property and rights: PPI indexation is applied automatically and the 2026 exemption is deducted.

Capital Gains Tax

Sale (disposal) price (TRY)Acquisition (purchase) cost (TRY)

Acquisition date

Sale (disposal) date

Select the purchase and sale dates; the DPPI (Yİ-ÜFE) indexation rate is calculated automatically.

Indexation rate — DPPI increase (%)Applied to cost only if 10% or above. Leave 0 if unknown.Selling costs — title deed fee, commission, etc. (TRY)

Bracket breakdown

TRY 0.00 – TRY 190,000.00 · %15TRY 28,500.00

TRY 190,000.00 – TRY 400,000.00 · %20TRY 42,000.00

TRY 400,000.00 – TRY 1,000,000.00 · %27TRY 162,000.00

TRY 1,000,000.00 – TRY 5,300,000.00 · %35TRY 122,500.00

Indexed costTRY 1,500,000.00

Capital gain (before exemption)TRY 1,500,000.00

Applied exemptionTRY 150,000.00

Taxable baseTRY 1,350,000.00

Calculated income taxTRY 355,000.00

Effective tax rate23.7%

Exemption applied as TRY 150,000.00 (2026, per Income Tax General Communiqué No. 332; for real estate and rights). This exemption does not apply to securities gains.

DPPI data is sourced from TÜİK; latest month in the table: June 2026.

* Results are estimates based on 2026 data.

These tools provide estimates and do not replace official calculations. Please contact us for definitive amounts.

In short

Capital gain = sale price − indexed acquisition cost − selling expenses. For 2026 the exemption for real estate and rights is TRY 150,000.00; the excess is taxed on the progressive tariff. For real estate, no capital gain arises on a sale made more than five years after acquisition.

How the calculation works

Step	What happens
1. Check the holding period	For real estate, a holding period beyond five years takes the gain out of scope. Assets acquired without consideration (inheritance or gift) are treated separately.
2. Index the acquisition cost	The acquisition cost may be uplifted by the domestic producer price index up to the month preceding disposal, provided the increase is at least 10%.
3. Deduct selling expenses	Costs directly related to the sale — title deed fees, agency commission, advertising — reduce the gain.
4. Apply the exemption	The annual exemption is deducted for real estate and rights. It does not apply to gains on securities.
5. Apply the tariff to the remainder	The remaining base is taxed on the progressive tariff for non-employment income and declared in March of the following year.

About this tool

Capital gain is the difference between the acquisition (purchase) cost and the disposal (sale) price of a property or certain rights (Income Tax Law, repeated art. 80). For real estate, a sale within 5 years of acquisition is taxable; after 5 years no capital gains tax arises.

To prevent inflation from inflating the gain, the purchase cost is indexed by PPI (Yİ-ÜFE, domestic producer price index). Indexation applies only if the index increase is 10% or more. This tool computes the indexation rate automatically from your purchase and sale dates using the TÜİK PPI table (based on the month before acquisition and before sale).

After deducting the indexed cost and selling expenses to find the gain, the 2026 exemption of ₺150,000 (Communiqué No. 332; for property and rights) is applied. The remaining base is subject to the progressive income tax schedule. This exemption does not apply to securities (e.g. shares); work with your accountant for the declaration.

Frequently Asked Questions

When is a property sale subject to capital gains tax?: If the property is sold within 5 years of acquisition, a taxable capital gain arises. Sales after 5 years are not subject to this tax (inheritance/gift acquisitions are assessed separately).
How is PPI indexation applied?: The purchase cost is uplifted by the ratio of PPI indices for the month before sale and before purchase. But if that increase is below 10%, no indexation is applied and the cost stays as is.
What is the 2026 capital gains exemption?: For 2026, the exemption for capital gains on property and rights is ₺150,000. The portion above the exemption is subject to income tax. It does not apply to securities gains.

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