The declaration period for the valuable residence tax, which is mandatory for those whose house value exceeds ₺9 million 967 thousand within the borders of the country, expires on February 20.
Ali Yuksel, President of the Real Estate Law Institute, gave information about the valuable housing tax declaration process, which will end on February 20.
Reminding that this tax was regulated in Article 29 of the Real Estate Tax Law No. 1319 with the legal amendment made in 2019, Yuksel said that the regulation is not yet known enough to the public.
Yuksel said, “Since the subject of the tax is ‘housing’, there is a possibility that many homeowners will skip or forget their tax declaration and payment. Those whose house value exceeds ₺9 million 967 thousand in 2023 must submit a declaration by February 20. In joint ownership (such as inheritance), owners can also submit joint or individual declarations. However, in joint (shared) ownership, each stakeholder will pay separately.”
“Those who own a single property are exempt from this tax.”
Ali Yuksel stated that those who own a single residential real estate within the borders of the country are within the scope of exemption and will not submit a declaration, and made the following warnings:
“Those who have more than one flat but the individual value of the flats is below ₺9 million 967 thousand will not declare it either. On the other hand, flats, residences and villas located in the leading districts of metropolitan cities such as Istanbul, Izmir and Ankara have become subject to valuable housing tax due to rising prices.
The prices of summer houses in regions such as Bodrum and Cesme often exceed this tax scope. Flat owners who do not know that they must submit a declaration by the end of February will be penalized. This situation will make the owners responsible for tax evasion and will also result in uncollected income for the Ministry of Finance.”
Yuksel underlined that there is a fine if the declaration is not submitted, and stated that a delay interest of 3.5% monthly and 42% annually is applied.
“The declaration must be submitted to the tax offices”
Yuksel, President of the Real Estate Law Institute, stated that the person who pays real estate tax should also pay this tax if his house is valuable, and said: “Contractors, whose main business is construction, will not declare if they have the flats that belong to them due to these works and have not sold or rented them yet. However, they will be subject to tax when they change hands.”
Stating that the declaration should be submitted to the authorized tax office affiliated with the Revenue Administration, not to the municipalities, Yuksel gave the following information:
“The declaration can be submitted online. The tax can be paid in cash or in two equal installments until February 29 and August 31. Anyone who purchases or acquires an apartment with these values after February 2024, the declaration period, will submit a declaration next year. The administration will not issue a declaration or remind you to pay the tax. While preparing the declaration, the property tax value given by the municipality for the buildings on that street will be taken as basis.”
Yuksel explained that people who did not file a return in 2022 and were penalized in terms of taxes in 2023 could reconcile with the tax administration by making a partial discount on the penalties through the application of regret.
“There are 3 different tax rates depending on the value of the house”
Ali Yuksel stated that there are 3 different rates regarding the taxable base for valuable housing tax and said, “Those whose value is between ₺9 million 967 thousand and ₺14 million 951 thousand must pay 3 per thousand tax for the value exceeding ₺9 million 967 thousand.”
Yuksel stated that the tax application is 6 per thousand between ₺14 million 952 thousand and ₺19 million 936 thousand, and 10 per thousand for residences worth more than ₺19 million 936 thousand. “Of course, payments will be made at those rates for departments falling into other tranches. The figures will emerge more clearly during the declaration process.”
Source: Trthaber / Prepared by Irem Yildiz