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    Property Tax in Turkey | Taxation Payments Conditions

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    Today, everyone has a dream to buy a home… But it is not easy to choose an affordable house. However, it is possible to achieve dreams with correct budget planning and support from professional real estate consultants for your investment. Among the things to consider when planning a budget, the overlooked expense is property tax in Turkey. In our article, we will examine the real estate tax that will be paid by those who will buy a property and the latest regulations in Turkey.

    Taxation Conditions for Single Homeowners

    Property taxes are separate for terrains and landowners, and for residential and business premises. For this reason, the property tax paid in Turkey by the individuals who will be the only homeowners should be evaluated considering this situation. Property tax in Turkey, which varies according to the value of the house, changes when the tenant lives in the house and is regulated according to the income level of the person. Taxes paid by general owners in Turkey are property tax, environmental cleaning tax, value increase tax and rental income tax.

    Real estate housing taxes paid by individuals who will be the only one homeowners are restricted under the conditions to be exempted. The exemption conditions are regulated by laws. Those who have no income and document it, retirees, people with any disabilities, martyr spouses and children; If it meets the square meter conditions, it is exempt from home tax payment. The square meter requirement is determined as 200 square meters. If these persons document the exemption conditions and apply to the municipality, 0 property tax is applied in Turkey. Tax exemption conditions are regulated in this way. Individuals who will own a single house should consider these conditions when buying a house and make their payments in this way.

    Property Tax Types to be Paid by Homeowners

    The Real Estate Tax Law No. 1319 regulated the real estate housing taxes paid by those who own a single house and imposes a property tax payment requirements for those who own a single house as well as a summer house or another house, except for those who have exemption requirements. In addition to this, among the taxes to be paid by the people who own a single house, there is an Environmental Cleaning Tax in accordance with the Municipality income law. This housing tax is deemed to be paid if the water invoice is paid because the environmental cleaning tax is included in the laws as a tax reflected on the water invoice where the houses and businesses are taxpayers.

    Another property tax in Turkey is the increase in value gain tax. This tax applies to those who own a single house and sell it within 5 years and make a profit. Finally, the Rental Income Tax is included in the law as another tax to be paid by the people who are the homeowners. This house tax payment will expire if the owners of the house rent the house they own. If there is a small difference in value, the tax paid will be paid as a rental income tax.

    Real Estate Tax Payment Ways

    Property tax paid by the real estate owners in Turkey can be paid in two installments per year. Property taxpayers are required to make their payments to the district municipalities. Another way is to use the internet banking of contracted banks. Payments can be made to the tax office’s internet branch. In 2020, the house owners will be able to pay their taxes in two installments. He/she is responsible for paying the first real estate housing taxes between March and May. The second real estate housing tax installment payments of the house owners will be made in November.

    Another question that comes to mind is the amount of the delay interest penalty in the event that real estate tax payments are not made. This delay interest will be applied at a rate of 2 percent per month. Calculation of the value of the real estate housing tax is decided primarily by the Ministry of Finance and the Ministry of Environment and Urbanization, and secondly according to the area and assessments to be determined by the commissions established by the municipalities. It will increase or decrease according to the square meter of the real estate.

    Valuable Property Tax and New Arrangements

    Another arrangement that should be known by homeowners is the increases in real estate housing taxes in 2020. This tax will be paid only if the property is considered as precious housing. Valuable Housing Tax has been rearranged with the articles added to the Real Estate Housing Tax Law No. 1319 and it will be within the scope of the legislation only if the value of the house has a value over 5 million Turkish lira. It will be announced by the General Directorate of Land Registry and Cadastre in a way that only the relevant person can reach. Any objection must be made within 15 days of the announcement date. The payment procedures of the real estate housing taxes to be paid by the homeowners will be like this.

    Property taxes with or without Valuable Housing Tax must be determined before buying and paid on time. Payment amounts to be made within the scope of Valuable Housing Tax and tax rates are included in article 42 of the legislation. The Housing Tax amount is recalculated every year according to the value of the immovables and increases in the valuation rate. Property tax to be paid by the people in Turkey who will own a new house and new regulations will be like this, and house tax payment must be made in accordance with these regulations.