Property Tax Consultancy

Emlak Vergisi Danışmanlığı

Property Tax Consultancy

In this article, we will explain to you in the best way such matters; as what property tax is, when a property tax is paid, how property tax is calculated, how and where property tax is paid. Continue reading our article to get informed about property tax which is one of the types of tax you pay for the real estate you own.

What is Property Tax?

It is the type of tax applied to the land or building owned by a person. According to the Real Estate Tax Law No. 1319, all buildings within the borders of Turkey are subject to ”building tax” whereas lands are subject to ”land tax”. The owner of the land or building, the usufruct right owner, if any, or both, are liable to pay the property tax. In order to determine the property tax rate, the property owner must first make an official declaration at a Tax Office.

According to the Real Estate Tax Law No. 1319, the real estate tax is a type of tax given for building and land properties located within the borders of Turkey. Property tax, which is divided into two groups as building tax and land tax, is generally paid by property owners. If there is no property owner, the persons to whom the land or building is allocated are liable to pay the tax. In Turkish Law of Things, these persons are called ”persons in possession”.

If you buy a new home or land,  first, you must prepare a ”statement of property”. This document is also called ”Immovable Statement Deed”  which you can carry out its entire process via e-government or by applying to the relevant municipality. In order to apply, you must have the following documents:

  • A copy of the owner’s identity card,
  • Building permit,
  • A copy of the certificate of occupancy
  • Address and telephone information,
  • Filled real estate notification form based on title deed records

When is Property Tax Payable?

Property tax is paid each year in two instalments or at once. The first instalment must be paid in March, April, and May, and the second instalment in November. Tax payments can be made by going to the municipality where the immovable is located. It is also possible to make online payments through the systems of municipalities providing e-municipal services. The real estate tax is determined by the municipalities every year over the current market value of the real estate.

How to Calculate Property Tax?

The first thing you should know about the calculation is that the tax is not the same for every house or land. Property tax increases or decreases in direct proportion to the value of the property. In addition, the minimum fair value – ie the purchase and sale value of the property in today’s market – influences the change in tax value as it is recalculated each year. With this information, ‘How is property tax calculated?’ It is necessary to know other details that will answer the question.’.

Property tax calculation is calculated proportionally according to the type of real estate asset. For residences and land, this rate is 1% of the current value. A tax of 2% is payable for other buildings, such as workplaces, and 3% for land.

Another important factor affecting the property tax rate is the municipality where your property is located. If your city is a metropolitan municipality, the above-mentioned rates are doubled. In this case, in metropolitan cities; You have to pay tax of 2% for housing and land, 4% for other buildings and 6% for land.

How and Where to Pay Property Tax?

After answering the question ‘How is property tax calculated?’, ‘How is property tax paid and where is it paid?’ It would be appropriate to answer your questions.’. These taxes are collected by the municipalities. For this reason, you can make your payment by going to the municipality where the real estate you own is located. If you do not have the time or opportunity to go to the municipality, you can also make your payment remotely. To pay without going to the municipality, you can use the real estate taxpayer number or make a transfer via PTT. An easier way is to send your credit card to the Republic of Turkey via the municipality’s e-municipality system. It will be to log in and pay with your ID or registration number.

Paying property tax is a responsibility that every citizen who owns real estate, regardless of income level, must fulfil.

Which Real Estates Are Not Subject to Tax?

According to Article 4 of the Property Tax Law, construction tax is not paid for agricultural business buildings, government buildings, army houses, military casinos, places of worship, embassies and consulates of foreign states, and dams. According to Article 14 of the relevant law, lands belonging to the state, cemeteries and lands belonging to foreign countries are also not subject to tax.

Who is exempt from Property Tax?

Housewives, widows, unemployed, relatives of martyrs, veterans or retirees are not liable to pay property tax. In addition, in order to benefit from the property tax exemption, there are conditions such as the condition that the immovable must be less than 200 square meters. To learn the details of the conditions required for real estate tax exemption, You can read our  following article: “Who is exempt from Real Estate Tax?” 

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