Turkey Capital Gains Tax Guide 2026

Overview — CGT as Part of IIT

Turkey does not have a separate capital gains tax regime. Instead, capital gains are classified as "other income" (diğer kazanç ve iratlar) under the IIT law. Gains from the disposal of movable assets (menkul kıymetler) and immovable property (gayrimenkuller) are subject to progressive IIT rates, with significant exemptions based on holding periods. The tax treatment differs between securities (stocks, bonds, funds) and real estate.

Securities — Stocks, Bonds & Funds

Holding period ≤ 2 years: Gains from the sale of securities are treated as "other income" and included in the annual tax return if the total gains exceed the exemption threshold (TRY 96,000 estimated for 2026). The gains are taxed at progressive IIT rates (15–40%). Only gains above the exemption threshold are taxable. Losses from securities sales can be offset against gains from the same category within the same year, but losses cannot be carried forward.

Holding period > 2 years: Gains from publicly traded shares (BIST stocks) held for more than 2 years from the date of acquisition are exempt from income tax. This exemption was introduced to encourage long-term investment in the Turkish capital markets. For non-publicly traded shares, the holding period exemption also applies, but the shares must be held for at least 2 full years. The exemption is automatic — no election is required.

BIST/IPO exemption (2026): Shares acquired through an Initial Public Offering (IPO) on Borsa Istanbul may benefit from a 50% exemption on the gain if held for at least 1 year, or a 75% exemption if held for at least 2 years from the IPO date. This incentive is designed to promote participation in IPOs and long-term holding of newly listed companies. Check GİB announcements for the most current regime.

Government bonds and Treasury bills: Interest income from government bonds and Treasury bills is subject to withholding tax (stopaj) at 0–10% depending on the instrument and maturity. Gains from trading these instruments are exempt from further taxation if the withholding has been applied. Repo gains: 15% withholding.

Real Estate Gains

Holding period < 5 years: Gains from the sale of real estate (land, buildings, apartments) are taxable. The taxable gain = sale price − (acquisition cost adjusted for inflation using ÜFE/Yİ-ÜFE producer price index). Only 40% of the calculated gain is included in the annual tax return (the remaining 60% is exempt). The included 40% portion is taxed at progressive IIT rates (15–40%). If the included portion is below the exemption threshold (TRY 96,000 estimated for 2026), no tax is due.

Holding period ≥ 5 years: Gains from the sale of real estate held for 5 years or more are entirely exempt from income tax. The 5-year period starts from the date of acquisition recorded in the title deed (tapu).

Principal residence exemption: Gains from the sale of a taxpayer's primary residence (mesken) are exempt from tax regardless of the holding period. This exemption applies once every 5 years. The property must have been genuinely used as the taxpayer's principal residence.

Calculation Example — Real Estate

Assume a property bought in January 2022 for TRY 1,000,000 and sold in March 2026 for TRY 3,000,000. The acquisition cost is adjusted for inflation using ÜFE (assume cumulative inflation of 200% over the holding period). Inflation-adjusted cost = TRY 3,000,000. Gain = TRY 3,000,000 − TRY 3,000,000 = 0. No tax due (if holding <5 years). Alternatively, if the holding period exceeds 5 years (e.g., purchased in 2019, sold 2026), the gain is fully exempt regardless of the numbers involved.

Cryptocurrency Gains

As of 2026, Turkey has not enacted specific crypto tax legislation. Crypto assets are generally treated as movable assets (menkul kıymet) by tax authorities. Gains from crypto trading may be subject to IIT if the taxpayer is considered to be engaged in commercial activity (continual, systematic trading). Occasional crypto gains may fall under the "other income" category with the 2-year holding period exemption potentially applying, though the legal classification remains uncertain. GİB has indicated that crypto gains will eventually be regulated. Investors should consult a tax advisor for their specific situation.

Reporting and Payment

Capital gains that exceed the exemption threshold must be reported in the annual income tax return (Yıllık Gelir Vergisi Beyannamesi) filed by 31 March of the following year. The tax is paid in two equal instalments (end of March and end of July). The return is filed electronically through the GİB's Hazır Beyan Sistemi or the main e-Declaration platform. Supporting documentation (contracts, bank transfer records, brokerage statements) must be retained for 5 years.

FAQs

Do I need to file a return for small gains?

No, if the total gains from securities and real estate (after applicable exemptions) are below the annual exemption threshold, no return is required. The threshold for 2026 is estimated at TRY 96,000.

Can I offset losses from securities against real estate gains?

No, losses from securities and real estate are categorised separately. Securities losses can only offset securities gains; real estate losses can only offset real estate gains. Losses cannot be carried forward to future years.

Are gains from foreign stocks taxable in Turkey?

Yes, gains from foreign stocks held by Turkish tax residents are subject to Turkish IIT. Foreign tax credits may be available for taxes paid abroad under double tax treaties. The 2-year holding period exemption may apply to foreign publicly traded shares.

What is the tax on BIST dividend income?

Dividends from BIST-listed companies are subject to 15% withholding at source. Individual shareholders include 50% of the net dividend in their annual IIT return (the other 50% is exempt), and the withholding is credited against the tax due.

Disclaimer

This guide provides general information about Turkish capital gains tax for the 2026 tax year. Thresholds and rates are estimated based on the most recent published data and the annual revaluation rate. Tax laws may change. The crypto tax treatment is not yet legislated and should be treated with caution. Always consult with a qualified Turkish tax advisor or GİB for advice specific to your situation. InvestmentKit does not provide tax advice.