14 November 2023

What Is Property Tax in Turkey, How Is Property Tax Calculated?

What Is Property Tax in Turkey, How Is Property Tax Calculated? What Is Property Tax in Turkey, How Is Property Tax Calculated?

In Turkey, a person who owns real estate, be it a house, a commercial building, or land, is liable to a tax set by the state. Individuals must pay Property tax in Turkey for every piece of real estate they possess. When paying property taxes, having precise and trustworthy information is essential. Let's look into how property tax is calculated, how it is paid, and what penalties are applied to owners who fail to pay. For more detailed information on property tax in Turkey and how it works, you can always contact Nest Invest, where we are ready to help you with all of your real estate needs and demands.

What Is Property Tax in Turkey?

Under the Property Tax Law No. 1319, property taxes are defined as payments provided to the government for real estate such as houses, land, and buildings that individuals own. Property owners who own real estate inside the boundaries of the Republic of Turkey are obligated to pay property taxes. When looking into the question of how property taxes are calculated, individuals who purchase a home, land, or parcel of land for the first time must first file a real estate declaration. The "Deed Real Estate Declaration" process can be completed by providing the required instructions through the e-Devlet website or in person by visiting the municipal centers that handle real estate registry matters. You must hand in a few documents when declaring title deeds for real estate in Turkey. Looking closer at the matter of how property tax is calculated in Turkey, it is possible to state that the tax amount determined for that real estate will be disclosed when you hand in these documents to the appropriate parties.

How Is Property Tax Calculated in Turkey?

Once you purchase a new home, you are entitled to property tax calculation in Turkey and are expected to pay taxes for this new property. You are not required to pay property taxes for the first year of your purchase. Regardless of the month the sale has occurred, you must pay property tax the following year. Property tax calculation in Turkey depends on a few factors. Examining the title deed of your purchased house is always a helpful and guiding method. Various tax rates may apply to a property if the title deed does not identify it as a condominium. In such cases, the property tax is divided among the building's sharers for payment. Property taxes might also vary based on the kind of property and where it is located. The amount due is calculated using the property's current market value as established at the time of sale. Property tax is collected at a rate of one per thousand from residential buildings, two per thousand from non-residential buildings, and one per thousand from lands. The property tax may rise by up to 100% if the property is situated in a major city.

Who is Exempt from Property Tax?

The absence of income is one of the most crucial requirements for property owners to be exempt from property taxes in Turkey. Those who do not have a source of income, such as retirees, widows, orphans, disabled individuals, relatives of martyrs, and veterans, are also eligible for property tax exemption. The individual must not own any other real estate and must occupy the property as a permanent residence to be exempt from property taxes. Furthermore, the property has to be smaller than 200 square meters. State-owned properties and institutions are not subject to property taxation as well. Among the structures exempt from property taxes are military buildings, religious buildings, and consulates of other countries. Remember that here at Nest Invest, we are ready to help you with all of your real estate purchases and procedures in Turkey.