The Helpful Guideline of Property Tax in Turkey

The Helpful Guideline of Property Tax in Turkey

What is the property tax?

What is the property capital gains tax? – Property Tax in Turkey – As the name implies, property tax is a type of tax collected for immovable assets such as land, house, or workplace. Accordingly, one shall pay a certain amount of tax for owning a property under law number 1319.

However, there are two types of property tax with one of them being land tax, and the other one, building tax. Besides, property tax is not related to the income or the financial status of the citizens because it is a responsibility that being a citizen brings. Therefore, one must certainly pay property tax notwithstanding the wealth. It is also a tax that should be pay continuously, which means citizens must pay it every year and it is not a one-time tax. 

Property Tax in Turkey

How is the property tax calculated in Turkey?

Is there property tax in Turkey? – First of all, you should know that not every house or land is subject to the same tax. Property tax shows an increase or decrease in direct proportion to the value of the real estate property. Additionally, the minimum fair value, in other words, the trading value of the property in the current real estate market, affects the property tax. It is also useful to know a few other details to answer the question “How is the property tax calculated in Turkey.”

The calculation of the property tax is proportional to the type of real estate property. This proportion is equal to 1% of the fair value of the houses, while it is 2% of other buildings such as workplaces, and the lands bring a property tax of 3% in proportion to their fair market value. 

All details about property tax in Turkey – Another element that affects the property tax proportions is the municipality that your immovable property is located. If your real estate is in a metropolitan municipality, you should pay the double of the before-mentioned proportions. In such cases, you must pay 2% of the houses, 4% for other buildings, and 6% for the lands. 

Property Tax in Turkey 1

How can you be exempted from the property tax in Turkey?

Do foreigners pay property taxes in Turkey? There are some conditions to meet in order to be exempt from the property tax. Citizens who own a house smaller than 200 square meters in gross size do not have to pay the property tax. Areas such as an indoor parking lot, stairwell, and hall can be included when calculating the size of the property.

In this case, if it is still smaller than the above-mentioned size, the owners are not liable to pay the property tax. Areas that other residences have the right of limited use are included in the total gross square meter calculation of the property. Therefore, for the properties whose sizes are smaller than 200 square meters in these circumstances, the owners do not have to pay the property tax. 

Property Tax in Turkey – The retired people, those with no income, citizens with disabilities, veterans, and the relatives of the martyrs are not liable for paying the property tax in certain circumstances. To be more precise, the Council of Ministers has determined the property tax proportion as zero. Until they regulate this proportion, the aforementioned citizens are exempt from the property tax. 

Property Tax in Turkey

Do you have to live in the property to benefit from the 0% property tax?

It is not required to live in the real estate property in person in order to benefit from not paying the property tax. Therefore, those who own a vacant property smaller than 200 square meters, those who rent such properties or let others live there without a charge can take advantage of the zero property tax proportions. It does not matter if the income of the rent is higher than the amount the owners pay for the houses they live in. You can also check that, property for sale procedures about this issue.

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If a retired person rents their property as a workplace, can they benefit from 0% proportioned property tax?

No, they cannot benefit from 0% proportioned property tax. This opportunity is only available for the houses.

Can I benefit from being exempt from property tax if I own land?

No, you cannot benefit from being exempt from property tax if you own land.

How can you learn about your property tax debt?

The citizens who want to see their property tax debt can do it through e-Devlet and from the relevant municipalities. You can also visit this website: https://www.turkiye.gov.tr/gib-vergi-borcu-sorgu 

Do the inheritors have to pay the property tax for the real estate property they inherited?

According to the Tax Procedure Law, Article 12, in case of the death of the property owner, the tax liability passes to their inheritors who have not renounced their inheritance rights. However, each of the inheritors is liable in proportion to their share in the inheritance. 

What happens if you do not pay the property tax?

Those who have not paid the property tax in time have to pay a delay fine at the determined rate. For instance, in 2001, the determined delay fine was 10%, while it became 3% in the first three months of 2006, and 2.5% for the following months. 

When does the property tax drop due to the lapse of time?

Property Tax in Turkey – As you may know, the tax to be collected drops in case of a time-out. The tax that has not been imposed or announced within the five years following the tax claim’s occurring drops due to a lapse of time.

When should I pay the property tax?

How do I pay property tax in Turkey? The property tax is calculated in accordance with the yearly calendar. Every year, the property tax amount to be paid can change in line with the changes in the fair value and the changes in the property type. A yearly amount is calculated to determine the property tax. You can pay it at one time, or divide it into two installments. The first installment should be paid between March 1 and March 31, while the second installment should be paid between November 1 and November 30. 

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