According to Duplicate Article 80 of the Turkish Income Tax Law No. 193, earnings derived from the disposal of immovable property—excluding those acquired without consideration (inheritance or donation)—within five years of their acquisition date are considered appreciation gains (Değer Artış Kazancı). For sales that occurred in 2025, a tax return must be filed between March 1, 2026, and March 31, 2026, if the net profit exceeds the 120,000 TL exemption amount, subject to a progressive tax rate.
Exactly 5 calendar years from the date of acquisition
Indexing Condition (Yİ-ÜFE)
Yİ-ÜFE increase must be 10% or greater
Tax Return Filing Period
March 1 – March 31, 2026
Tax Payment Installments
March 2026 & July 2026
What is Capital Gains Tax on Property?
Capital gains tax on property, referred to as appreciation gain tax in the Turkish tax system, is a tax levied on the reel profit derived from the inflation-adjusted increase in the value of an immovable property between its acquisition and disposal dates, provided the disposal occurs within five years. This tax targets “casual” gains obtained from the liquidation of personal assets, rather than gains generated through a commercial property-trading organization. For sales that occurred in 2025, the reel profit is declared in March 2026.
💡 Critical Information: Earnings obtained from the disposal of property acquired without consideration (such as inheritance or donation/hibe) are not considered appreciation gains; the five-year rule does not apply to these sales, and income tax is not levied.
Who Must File a Capital Gains Tax Return?
The following categories of property owners must file a tax return in March 2026 for income obtained in 2025:
Individuals who sold immovable property (purchased or acquired with consideration) within five years of the tapu tescil (title deed registration) date.
Individuals whose calculated “net appreciation gain” (after inflation adjustment and deductions) exceeds the 120,000 TL exemption amount for 2025 sales.
Individuals who sold properties acquired through “cins tashihi” (conversion of property type) or received through a construction agreement (kat karşılığı), basing the five-year period on the new acquisition date.
Non-Resident Taxpayers (Dar Mükellef)
Individuals who do not reside in Türkiye but derive income from capital gains sourced within Türkiye are taxed only on their income within the country. These individuals are also entitled to the 120,000 TL exemption for property appreciation gain, subject to the progressive tax tariff.
How to Apply? Step-by-Step Filing and Calculation Process
To file a property capital gains tax return, property owners must follow these steps:
Adjust the Acquisition Cost (Indexing): The initial acquisition cost of the property is adjusted for inflation using the Yİ-ÜFE (Domestic Producer Price Index) rates from the month before the acquisition date and the month before the disposal date. This inflation adjustment is applied only if the Yİ-ÜFE increase is 10% or greater.
Determine the Net Gain: The adjusted acquisition cost is deducted from the disposal price. Additionally, the tapu harcı (title deed fee), any broker commission, and other disposal expenses paid by the seller can be deducted.
Apply the Exemption: The 120,000 TL exemption amount for 2025 is deducted from the net gain. The remaining amount is the taxable matrah.
Access the Return System and Confirm: Log in to hazirbeyan.gib.gov.tr using e-Devlet credentials. The Revenue Administration (GİB) pre-fills a return based on title deed records; property owners must check this data and input the calculated values. The return is then confirmed.
Calculation Example and Financial Impact
An example tax calculation for a property sold in 2025:
Acquisition Date / Price: January 2021 / 500.000 TL
Disposal Date / Price: August 2025 / 2.000.000 TL
Indexing: The Yİ-ÜFE increase between January 2021 and August 2025 exceeds 10%, allowing the acquisition price to be adjusted. Indexed Acquisition Price: 1.250.000 TL
Assessed Tax: Income tax is calculated based on the progressive tax tariff for 630.000 TL.
Risks and Critical Considerations
The primary risk in property capital gains taxation is failing to declaring the income. Non-declaration or incomplete declaration leads to the loss of the exemption, along with substantial penalties, tax loss penalties, special irregularity penalties, and monthly interest. GİB cross-references tax declarations with tapu records, bank data, and mortgage information. Taxpayers who select the real expense method must retain their expense documents for a period of five years.
Frequently Asked Questions
When is the capital gains tax return filed in Türkiye?
For capital gains obtained in the 2025 calendar year, the annual income tax return must be filed between March 1 and March 31, 2026. This is the official tax calendar for the 2026 period.
Does the 5-year rule apply to an inherited house?
No, earnings from the disposal of immovable property acquired without consideration (such as inheritance or donation) are not considered appreciation gains. The 5-year holding period condition does not apply to these sales.
How is property capital gains tax paid?
The assessed income tax can be paid in two equal installments, with the first installment due by March 31 and the second by July 31, 2026. Payments can be made to tax offices or via authorized banks.
Professional Support
Errors in the property capital gains taxation process can result in tax assessments and penalties. For accurate calculations, maximum utilization of exemptions, inflation indexing, and the filing process, you can receive support from the expertise of Vergi Merkezi | Mali Müşavirlik.
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⚠️ Legal Disclaimer: This content has been prepared based on the current legislation in effect as of its publication date. Tax and commercial legislation change frequently; for definitive results, obtain information and support from Vergi Merkezi | Mali Müşavirlik.
📚 Sources and References
Primary Sources
T.C. Resmi Gazete Title: Income Tax Law Communiqués and Related Legislation Date: 2025/2026 Mevzuat Güncellemeleri
Revenue Administration (GİB) Document: 2025 Property Appreciation Gain Declaration Guide
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