Real Estate

A new are in luxury housing tax: Those who have a single residence will not pay

A new era has begun in the luxury housing tax. The first installments were paid in February, the second in August. Those who have a single residence will not pay even if it’s value exceeds ₺5 million. You have the right to object within 15 days.

A new era has started in the housing market with the tax collection on the “real estate tax value”, which was applied for the first time this year. Those whose real estate value exceeds ₺5 million 227 thousand have now started to pay valuable housing tax. The regulation concerns approximately 150 thousand residences. For residential real estate, the first installment must be paid by March 1, while the second installment must be paid by the end of August. For residences whose value exceeds ₺10 million, a valued housing tax of ₺22 thousand 500 will be paid.

The declarations for this tax, which has been put into effect since the beginning of the year, were submitted in February. Here are the answers to 10 questions about the valuable housing tax:

1- WHAT ARE THE VALUABLE HOUSING TAX LIABILITIES?

Those who own more than one residence with a property tax value exceeding ₺5 million 227 thousand will pay. Valuable housing tax is paid by the homeowner or tenure holders. In case of shared ownership, the taxpayer is considered to be proportional to the shares.

2- WILL THEY HAVE TO PAY ALSO IF THEY HAVE A SINGLE HOUSING?

Those who own a single house will not pay valuable house tax, even if its value exceeds this amount. Those who own more than one house will not pay this tax for the only house with the lowest value. No tax will be required from those who own a dwelling by share.

3- HOW IS THE TAX BASE CALCULATED?

The tax base will be the property tax value. In shared ownership, the total value of the house will be taken as a basis in the calculation of the base. Residential properties with a value between ₺5 million and 7.5 million will be subject to 3 per thousand tax for the portion exceeding ₺5 million.

4- IS THERE A RIGHT TO OBJECT TO THE DETERMINED VALUE?

Houses with a value exceeding ₺5 million are announced on the website of the General Directorate of Land Registry and Cadastre, and the owners are notified. The value of the houses, which are not objected to within 15 days from the date of the notification, becomes final.

5- CAN THE VALUABLE HOUSING TAX BE DEFERRED?

The Ministry has the authority to file tax returns and extend the payment deadlines for up to 3 months. However, there is currently no such practice. The first installment must be paid by the end of February and the second by the end of August.

6- DOES IT INCLUDE REGISTERED WORKPLACES?

Valuable housing tax will not be collected from immovables registered as factories, workplaces or land in the land registry. Only residential immovables are subject to tax.

7-STATUS OF NON SOLD RESIDENCES?

Houses under construction that have not yet been subject to the first sale or transfer will be exempt from tax. However, if it is rented or used, it will have to be paid.

8-WHAT WILL HAPPEN IF THE PROPERTY TAX VALUE DECLINES?

If the value of the immovables remains below ₺5 million in the following years, the situation will be reported by applying to the tax office.

No returns will be made for that year.

9- WILL COMPANIES PAY ALSO?

Companies, foundations and associations will also pay tax on the quality housing they own. Construction companies, land owners, and residential real estates that have fallen to them due to construction in return for flat, are not required to submit a declaration if a construction servitude has been established in the title deed but has not been settled yet.

10- ARE THE DECLARED AMOUNTS BEING CHECKED?

The declared amounts can be made by the tax offices from the relevant institutions and organizations.

Source: Sabah / Translated by Irem Yildiz

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