The Most Understandable Guide About Property Tax and Payment in Turkey

annual property tax in turkey

About annual property tax in Turkey and property tax payment options – Currently, Turkish homeowners pay an annual property tax, which is 0.1% of a property’s value, according to the Ministry of Finance and Treasury.

As in every country, citizens in Turkey have certain tax liabilities. The real estate tax is one of them and it is among the most curious tax types. So what is property tax, who is obliged to pay property tax, and when and under what conditions is this type of tax paid?

The real estate tax, as the name suggests, is a type of tax levied on immovable property assets such as residential buildings, land, or workplace.

Is annual property tax in turkey going up? – Accordingly, a certain amount of tax must be paid to the state in accordance with the provisions of the law numbered 1319 for immovable assets within the borders of Turkey. However, let’s not forget that there are two different types of property tax, namely land and building tax.

It is also worth noting that the property tax does not vary according to the income or financial status of the citizens. Because as we mentioned at the beginning, the real estate tax is a responsibility of being a citizen.

Therefore, it must be paid regardless of the financial situation. On the other hand, let us give you the information that the property tax is continuous. Well, what does it mean? Anyone who is obliged to pay real estate tax has to pay this tax every year. In other words, it is not a one-time tax, but a tax that is repeated annually.

We will focus on these questions?

  • How do I pay annual property tax in Turkey?
  • How much is the annual property tax in Turkey?
  • Do foreigners pay annual property tax in Turkey?
  • Is annual property tax in Turkey high?
  • How much is the annual property tax in Turkey?
  • How much annual property tax do you pay in Turkey?
  • How to pay property annual property tax in Turkey?

The real estate tax is a type of tax that concerns property owners or citizens holding the title of the property owner. Therefore, whether you live in an apartment or a prefabricated house, you have to pay real estate tax for your property. However, let’s also mention that citizens who are tenants are not held responsible for property tax.

Main annual property tax in Turkey on Foreigners in Turkey – On the other hand, we need to add that in the case of real estate with shares, each shareholder must pay tax at the rate of his own share. In addition, when it comes to participating properties, we can say that all participants are subject to tax.

In addition to all these, we should also consider that some exemptions may come up in property tax.

In this sense, we can state that disabled citizens, relatives of martyrs and veterans, retirees, deceased retired relatives, and unemployed citizens who do not have any other income are exempt from real estate tax. However, it is useful to add the detail that this exemption is only valid for residences and not for other immovables such as workplaces or land.

On the other hand, you should keep in mind that in order 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. In addition, we can say that you cannot be exempt from tax even if you meet the exemption conditions in case you have more than one residence.

If you meet the conditions listed and think that you are exempt from the real estate tax, you can apply to your municipality with the necessary documents to benefit from the exemption.

How does the taxation process work for foreign investors in real estate in Turkey?

After giving the answer to the question of what is real estate tax and learning how it is calculated, we can now examine the issue of how you can pay your tax. First of all, the relevant municipality should be applied for payment and the relevant declaration should be filled.

During the application, you should have title deeds, usage permits, and identity information with you. After these transactions, you can now make your payments for the properties you have declared.

It is possible to pay your real estate tax, which is possible to pay in two equal installments each year, by going to any tax office. Similarly, you can pay your municipality.

However, if you do not have time, we can say that you can also pay your real estate tax via the e-Government application. In this way, you can easily fulfill your tax liability over the internet with your e-Government password and identity information.

How often is the property tax paid in Turkey?

Property tax payment and definition in Turkey. – Another detail that is as important as how the property tax is paid is when it should be paid. There is a misperception in the minds of the citizens that the first installment of the property tax should be paid on the last day of May and the second installment on the last day of November.

Guide to pay property tax payment Turkey. – But this misconception actually causes the tax payments to pile up. sometimes it can even cause disruptions in the system. Since these dates are only due dates, it can be concluded that taxes must be paid before these dates.

So when should he pay the property tax? You can actually pay your real estate tax at any time throughout the year. It is even possible to make your online payments even during the weekly holidays. If you delay your real estate tax, you will have to pay the delay penalty calculated daily in addition to your tax.

What are the property tax payment methods in Turkey?

Make a property tax payment. – If it’s time to pay real estate tax, you may be wondering where to make your payments.

It is possible to pay real estate tax debt in different ways. If you do not want to make transactions online, you can apply to the municipality where the property is affiliated and make your payment directly to the municipality. Real estate tax payments can also be made through bank branches.

How can I pay my property tax payment in Istanbul? – If you do not have the chance to stop by the city hall or if it is far from you, you can take the first step by choosing the nearest bank branch. Afterward, you can deposit the amount of your tax debt to the municipality’s account.

What are the tax rates for real estate in Turkey and does it change year by year?

The real estate tax, known as the price to be paid to the state for the building, plot, or land owned, and which all immovable property owners are obliged to pay, closely concerns 35 million real estate owners.

For real estate tax, each taxpayer pays tax at different rates and prices. There is a 100 percent increased tax in the metropolitan area. By law, the real estate tax rate of the houses is 2 per thousand within the metropolitan borders; It is calculated as 1 per thousand in non-metropolitan municipalities.

View your personal property tax payment history from e-government.

Property tax payment options in Turkey. – Workplace and shop real estate tax rates are 4 per thousand in Büyükşehir; it is applied as 2 per thousand in other municipalities.

Property tax payment options and due dates. – The tax rate of land in a metropolitan area is 2 per thousand, in other municipalities the tax rate is 1 per thousand; The tax rate of land in a metropolitan area is 6 per thousand, and the tax rate of land in other municipalities is 3 per thousand.

Property tax payment plans are available for those in Turkey who meet the requirements.

Online property tax payment transactions in Turkey. – The valuable housing tax, which was postponed in February, will come into effect in 2021. Those who have more than one house with a real estate tax value of more than 5 million TL will be subject to tax. Those who own shares in a luxury residence will also pay this tax. In summary, house owners with a property tax value of over 5 million TL in 2020 will pay valuable housing tax in 2021.

What are the differences between the rights of Turkish citizens and foreign citizens on property tax?

There is no difference between the principles applicable to a Turkish citizen and a foreign real person in the sale of real estate. However, if the buyer is foreign, the procedure mentioned above will also be applied in this case. Also, you can check to buy property procedures in Turkey.

Make timely property tax payments to avoid penalties and earn rewards.

In addition, each real estate acquisition is subject to certain transaction taxes and expenses such as “Title Deed Fee”, “Value Increase Tax”, “Stamp Tax” and “Notary Charges”. Holding the immovable is also subject to the “Property Tax”, which is the wealth tax.

The sale of an immovable by a foreign real person is also subject to an income tax related to the capital gains obtained in the case of an immovable sold in less than 5 years following the acquisition of the immovable. However, capital gains obtained from real estate sold after 5 years of holding will not be subject to income tax.

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