  We present a two-loop computation of the beta functions and the anomalous
dimensions of a $\gamma_5$-Yukawa model using differential renormalization. The
calculation is carried out in coordinate space without modifying the space-time
dimension and no ad-hoc prescription for $\gamma_5$ is needed.
  It is shown that this procedure is specially suited for theories involving
$\gamma_5$, and it should be considered in analyzing chiral gauge theories.
