Gains on a home sold before five years are taxed. The 2026 exemption is TL 150,000; the acquisition date and PPI indexation are explained using the GİB guide.
When selling a home, plot or olive grove, the answer to “will there be tax?” often depends on when and how you acquired the property. The gain from value increase (değer artışı kazancı), regulated in repeated Article 80 of the Income Tax Law, means that under certain conditions the gain arising from a sale is subject to income tax. This guide is based on the Revenue Administration's (GİB) 2026 “Other Income and Receipts” guide and Income Tax General Communiqué No. 332.
The basic rule: five years
According to the GİB guide, if real estate (residence, plot, etc.) acquired by natural persons for consideration is disposed of within five years starting from the acquisition date, the gain obtained is subject to income tax. In calculating the five-year period, the calendar day is the basis. In a sale made after five full years, no tax arises in this respect.
In the example in the guide, where real estate bought on 10/4/2023 is sold on 21/10/2025, it is stated that since five full years have not been completed, the part of the gain exceeding the exemption amount is subject to tax.
Inheritance and gift: acquisition without consideration
According to the guide, if property and rights are acquired without consideration (ivazsız), for example by inheritance or gift, the gain arising from their sale is not taxed as a gain from value increase. In the example in the guide, even if an apartment received by inheritance is sold within two years, no tax arises in this respect. If an inherited plot is given in exchange for flats, its nature as “acquisition without consideration” does not change.
How is the acquisition date determined?
From which date the five years begin is the point where mistakes are most often made. The principles in the GİB guide:
- General rule: For real estate, acquisition takes place by registration in the title deed; the acquisition date is the title registration date.
- Handing over for actual use: For homes received ready for use from a cooperative, TOKİ (Housing Development Administration) or other persons, if documented by an actual-use allocation document, a handover record or water and electricity bills, the actual use date is the basis.
- Promise-to-sell contract: In the example in the guide, for land bought through a promise-to-sell contract, the title registration date is taken as the acquisition date.
- Flat-for-land exchange: Registration of flats obtained by constructing a building on real estate bought as a plot, or by giving the plot in exchange for flats, is treated as a correction of type (cins tashihi); the new registration date is the acquisition date.
- Land becoming a plot: For land that gains plot status as a result of subdivision by the municipality, the registration date of the correction of type in the title deed is the basis.
How is the gain calculated?
The net gain from value increase is found by deducting from the sale price the cost price and the expenses, taxes and fees incurred because of the sale and remaining on the seller. If the cost price cannot be determined, the amount to be determined by the appraisal commission under the Tax Procedure Law is the basis.
Indexation
Under repeated Article 81 of the Income Tax Law, the acquisition cost is increased by the rate of increase in TÜİK's (Turkish Statistical Institute) Domestic Producer Price Index (Yİ-ÜFE), excluding the month of disposal. For indexation to be applied, the rate of increase must be 10% or more.
Exemption amount
A certain portion of the gain from value increase obtained in a calendar year (excluding securities) is exempt from tax:
- For 2025 sales: TL 120,000
- For 2026 sales: TL 150,000 (Communiqué No. 332)
The exemption applies not per sale but to the gain from value increase obtained in the relevant calendar year. The gain exceeding the exemption is declared by annual return in March of the year following the year of sale.
Distinction from commercial income
The GİB guide states that if buying and selling real estate carries the elements of continuity, profit motive and commercial organization (such as a workplace, employees, trade registry), the income obtained may be regarded as commercial income. Those who buy and sell continuously within the same year or in consecutive years should take this distinction into account.
Why does the price declared at the land registry matter?
Since the sale and purchase prices are the basis for calculating the gain, declaring the real price at the land registry is important for both buyer and seller. Under the Fees Law, the title deed fee is collected on the declared transfer and acquisition price, which may not be less than the real estate tax value. With Law No. 7566 dated 19.12.2025, the tax loss penalty to be applied if it is later determined that the fee was paid on a price lower than the real estate tax value or that the declared price does not reflect the truth was raised from 25% to “one fold”. An understated purchase price may also enlarge the gain calculated in a future sale.
Pre-sale checklist
- Determine the acquisition date in the title deed and the form of acquisition (sale, inheritance, gift, flat-for-land exchange).
- Calculate the day on which five years are completed by calendar day.
- Collect the documents showing the purchase price and its costs.
- Calculate the Yİ-ÜFE increase and see whether the indexation condition is met.
- If you are planning another sale in the same year, take into account that the exemption is one per year.
We recommend getting support from a certified public accountant for calculation and declaration. Aktif Emlak can help you compile your title deed information while you plan your sale in the Edremit Gulf.
