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Taxes Related to Real Estate in Turkey

Taxes Related to Real Estate in Turkey

Taxes Related to Real Estate in Turkey 

The real estate tax is one of the citizenship responsibilities that should not be ignored; it must be paid on time. As the name suggests, it is a type of tax imposed on immovable property assets such as buildings, land, or workplace. Under the provisions of Law No. 1319, a certain amount of tax must be paid to the state for the immovable property located within the borders of Turkey. There are two different types of the real estate tax: land tax and building tax.

The real estate tax is paid by property owners or those holding the title of the property owner. Tenants do not pay real estate tax. In shared immovables, each shareholder is subject to tax at the rate of his / her share. In the case of ownership, each owner is subject to real estate tax jointly (all associates are jointly liable for the debt, without indicating the amount). Those who have the title deeds of the immovable property are liable for real estate tax and accordingly, this tax is among the direct tax types. Besides, retirees, housewives, veterans, and relatives of martyrs, the unemployed, and the disabled are exempt from real estate tax due to certain conditions such as not owning more than one house and having no other income than monthly income. However, this exemption is only valid for residences and does not apply to other immovables such as workplaces or land. On the other hand, to benefit from the exemptions, the residence must be located within the borders of the country and must be smaller than 200 square meters gross.

The tax amount may change every year as it is calculated on the minimum fair values. Besides, tax rates vary according to the feature of the immovable property, including housing, land, or workplace. Also, the city where the property is located plays a role in the tax rate. Accordingly, the real estate tax of the immovable assets included in the metropolitan area is applied with a double increase. For this reason, it is useful to check whether your real estate is located within the metropolitan borders when calculating the real estate tax. If your real estate is within the scope of a metropolitan city, you must pay a real estate tax of 2 per thousand of the declared tax values. However, this rate decreases to 1 per thousand for residences that do not fall within the borders of the metropolitan area. These rates may differ in non-residential buildings, lands, and plots. This tax is collected regularly by the municipalities every year. It can be paid at once or divided into two installments.

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