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By Nilgun Yamaner
Yamaner & Yamaner Law Office
Turkey

In the General Assembly of the Turkish Grand National Assembly (TBMM) dated 11.02.2020, the Real Estate Tax Law was amended to revise the Valuable Housing Tax liability and exemptions. The changes will enter into force after they are published in the Official Gazette.

According to the amendments adopted in Parliament but still not enforced;

1-) The valuation application by the General Directorate of Land Registry and Cadastre (TKGM) will be terminated and the building tax value determined according to the Real Estate Tax Law will be taken as basis. In other words, "valuation" notifications will not be sent from TKGM again.

2-) Those who have a single residence will be exempt from the Valuable Housing Tax.

3-) The lowest value of the immovable properties will be exempt from Valuable Housing Tax for those who have more than one immovable property within the scope of valuable housing.

4-) Valuable housing tax will not be paid for the first 5.000.000,00 TL. The principle of taxation for the part exceeding 5.000.000,00 TL is as follows:

  • Real properties valued between 5.000.000,00 TL and 7.500.000,00 TL, will be taxed at a rate of 3 per thousand for the part exceeding 5.000.000,00 TL;
  • Real properties valued between 7.500.000,00 TL and 10.000.000,00 TL, will be taxed at a rate of 6 per thousand for the part exceeding 7.000.000,00 TL;
  • Real properties valued more than 10.000.000,00 TL will be taxed as 22.500,00 TL, and at a rate of 10 per thousand for the part exceeding 10.000.000,00 TL.

5-) For the jointly owned and cooperatively owned properties the total value of the residential property will be taken as basis in the calculation.

6-) The liability regarding Valuable Housing Tax will be effective from the beginning of 2020. In other words, the obligation to submit declarations and pay taxes will begin in 2021.