Real Estate

First installment payment of property tax ends on May 31

According to the last minute news, the first installment payment period of the property tax, which concerns millions of real estate owners, started in March and ends on May 31. Those who did not sell their current real estate and those who bought real estate last year will pay taxes this year. The obligation of those who buy houses this year will start in 2022.

Breaking news, the first installment payment period of real estate tax ends on May 31st. Those who bought houses last year will be subject to tax this year, while this year’s obligation to buyers will begin in 2022. Those who certify that they have no income, people whose income is limited to the pension they receive from social security institutions, veterans, widows and orphans of martyrs and disabled citizens will be exempted from property tax.

HOW WILL THE PROPERTY TAX VALUE BE CALCULATED?

The property tax value is determined by the appreciation commissions that meet every 4 years. Half of the revaluation rate is added to the determined figure every year. The revaluation rate was 9.11% for this year. Accordingly, the tax values for 2021 will be found by adding a 4.55% increase to the current value. For example, 4.55% will be added on the current value of a house, which was ₺250 thousand last year.

In this way, the value for 2021 will be found. The tax value of the house this year will be ₺261 thousand. The rates determined according to the type and location of the real estate will be added to this current value. The tax rate of the houses will be calculated as 2 per thousand in metropolitan cities and 1 per thousand in other provinces.

WHERE WILL THE PAYMENTS BE MADE TO?

Citizens who want to inquire and confirm whether they have property tax debt will be able to learn these transactions from the municipalities or from the Internet Tax Office service transactions offered by the Revenue Administration (RA) via e-Devlet. Property tax installments will be made directly to the municipality to which the real estate is affiliated.

Citizens who do not want to go to bank branches due to the Covid-19 outbreak will also be able to perform this transaction from the mobile applications of the banks. While all citizens who do not meet the exemption conditions will be subject to paying the property tax, a 1.6% default interest will be applied to those who do not pay the first and second installments of the tax within the specified period.

EXAMPLARY CALCULATION

Property tax value of a house in Istanbul for 2020: ₺250,000

Half of 2018 revaluation rate: (9.11%/2): 4.55%

Property tax value of the residence for the year 2021: ₺261.375

Real estate tax value to be taken as basis in the accrual of tax, since fractions up to a thousand lira will not be taken into account: ₺261,000

2/1000 of this value: ₺522

EXEMPTED MAY RETURN THE PAYMENT

Those who certify that they have no income, the widows and orphans of the veterans, disabled people and martyrs, whose income is only from the pension they receive from social security institutions, are not liable to pay tax for this dwelling if they have a single dwelling or share in a single dwelling within the borders of Turkey, which does not exceed 200 square meters.

There are also millions of citizens who pay taxes without knowing its exemption. A five-year retrospective refund is also available if the payment has been made. For this, it is sufficient to submit a request for correction to the real estate unit of the municipality.

Source: Sabah / Translated by Irem Yildiz

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