Yİ-ÜFE Indexation

Tax & Turkey

Raising the purchase cost for inflation when a Turkish capital gain is calculated.

If the domestic producer price index (Yİ-ÜFE) rose by at least 10% from the month before the purchase to the month before the sale, the cost is increased by that rate and only the remaining gain is taxable. If the rise is below 10%, no indexation applies. Rates and thresholds can change; check with a tax adviser.

Example

Say your lira cost is 30,000 and your sale proceeds are 42,000 lira. If Yİ-ÜFE rose 25% over the period, the indexed cost is 37,500 lira and the taxable gain is 4,500 lira. If the index rose only 8%, the cost stays at 30,000 lira.

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