With the Law on Amending Digital Service Tax No. 7193, Certain Laws and Statutory Decree No. 375 published on the Official Gazette No. 30971 and dated 07.12.2019; Real Estate Tax Law No. 1319 was regulated, and Valuable Housing Tax has been issued.
With the Bill of Law regarding Geographic Information Systems and Amending Certain Laws, which was discussed in Turkish Grand National Assembly, it has been decided to conduct certain amendments in the Valuable Housing Tax and make certain additions, including postponing the tax for 1 year. As per the decision, Valuable Housing Tax has been postponed 1 year and first declaration will be submitted in 2021.
According to the regulations, recent amendments are as below;
- Liability of Valuable Housing Tax will start as of 2021.
- Regarding Valuable Housing Tax; values determined by General Directorate of Land Registry and Cadaster will not be taken into account.
- Regarding Valuable Housing Tax; real estate tax value of the property will be considered.
- Residential properties owned by Public Housing Administration (TOKİ) have been exempted from Valuable Housing Tax.
- Those who own a single residential property, are exempted from Valuable Housing Tax.
- Residential property with the lowest value has been exempted from Valuable Housing Tax for those who own more than one property, which are subject to Valuable Housing Tax.
Valuable Housing Tariff has been revised as below.
|Value of the House||Tax Rate|
|Up to 5.000.000 TL||Exempt|
|Between 5.000.000 TL and 7.500.000 TL (Including these amounts), For the part exceeding 5.000.000 TL||(3 per thousand)|
|Up to 10.000.000 TL (Including this amount), 7.500 TL for 7.500.000 TL, For the exceeding part||(6 per thousand)|
|For more than 10.000.001 TL, 22.500 TL for 10.000.000 TL, For the exceeding part||(10 per thousand)|
The upper and lower limits of the residential real estate values that are the basis of tax rates will be increased by half of the revaluation rate each year, determined in relation to the previous year.
Relevant circular in Turkish regarding the subject can be accessed from here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.