Property Taxes in Turkey In 2021

This blog post is on the property taxes in Turkey in 2021. Property taxes in Turkey are taxes that you will need to pay once a year due to the ownership of a property. This tax should not be confused with the stamp duty that is paid during the property purchase process. You will be subject to legal complications and fines if you do not pay this yearly property tax. So please read this post carefully to avoid having problems with the Turkish legal system.

Please note that if you have bought a property in Antalya or property in Istanbul through Kingsman Estates we do have an after sale service where we do monitor your taxes and let you know when and how much you need to pay.  

What is Property Tax?

Property tax, which is a type of tax that must be paid on a regular basis, is not just a tax on homeowners, it covers all real estate. Land, residence, building (apartment), shop and land owned are also subject to property tax. The property tax, which has been paid since 1986, is collected by the city municipalities where the property is located. The real estate tax starts 1 year after the real estate is purchased. Exceptionally, if you bought a house in a newly built building, then there may be an exemption. In this case, the owner of the immovable property is exempt from one quarter of the property tax for 5 years. If you continue to pay property tax because you are not aware of it, you can get your overpayments back by applying to the municipalities.

Property tax can be paid in one or two installments per year. In other words, you can pay your debt without installments or in two equal installments. The first payment of installment payments is usually made in March and the second payment is made in September. Since the payment months can change every year, you need to follow detailed information on this subject from municipalities or news sites.

How to Learn Property Tax Debt?

The amount to be paid may vary each year, and the total amount may vary according to many criteria regarding the real estate you own. You can learn the property tax debts you have to pay from the municipality where your property is located. Some municipalities use e-municipal services. Thanks to this service, you can make the necessary inquiries online. If the municipality you will pay does not provide an e-municipality service or if you want to query your debt with a different method, you can make a debt inquiry from the e-government or the Internet Tax Office of the Revenue Administration with your password and TR ID number.

What is Property Tax Configuration?

When you own a home, you have to pay property tax on a regular basis every year. So what happens when you don’t pay property tax regularly? In this case, the late fee is added to the amount you have to pay. In order to provide ease of paying these debts, the right to configure property tax can be offered by the state. Before moving on to the details of real estate tax configuration, let’s share with you all the details you need to know, especially the question of what real estate tax is.

How to Pay Property Tax Debt?

There are different alternatives you can choose to pay your property tax debt. You can pay your tax debt by hand by applying with your identity card from the tax counters of the municipality. In addition, you can pay to the bank account of the municipality where your real estate is located, or you can choose to make a transfer from the PTT. In addition, thanks to the Internet Tax Office of the Revenue Administration, you can make your payments over the Internet in a more practical way.

How is Property Tax Calculated?

The evaluation rate of the municipalities is a very effective factor in the calculation of property taxes. This value may vary according to the region and structure of the real estate. The thousandth of the result is taken according to the municipality. The real estate tax rate in metropolitan municipalities is twice as high as in other municipalities. Before explaining how the real estate tax debt is calculated with an example, let’s share the coefficients over the municipality and the type of real estate.

Let’s say your house is worth $500,000. Let the re-evaluation rate be 5% and your real estate should be located within the metropolitan borders.

5% of 500.000 TL = 25.000 TL

Current value of your house according to the new year: 525,000 TL

2 per thousand of 525,000 = 1,050 TL

According to this calculation, the tax amount you have to pay in the year you calculate is 1,050 TL. You can pay this amount in cash or divide it into two equal installments.

We said that the city is important for the calculation of house tax and we shared the ratios per thousand with you in this direction. So, which are the major cities? The list of major cities in alphabetical order is as follows: Adana, Ankara, Antalya, Aydın, Balıkesir, Bursa, Denizli, Diyarbakır, Erzurum, Eskişehir, Gaziantep, Hayat, İstanbul, İzmir, Kahramanmaraş, Kayseri, Kocaeli, Konya, Malatya, Manisa, Mardin, Mersin , Mugla, Ordu, Sakarya, Samsun, Sanliurfa, Tekirdag, Trabzon, Van.

What is Property Tax Exemption? Who Can Benefit From Real Estate Tax Exemption?

Although the property tax is a tax that is obligatory for every real estate owner to pay, there are property owners who can be exempted thanks to the decision of the Council of Ministers. So who can benefit from the property tax exemption?

Those who have a house but have no income, veterans, widows and children of martyrs, retirees and disabled citizens can benefit from the exemption provided that they do not exceed 200 square meters and have a single residence.

If you want to benefit from the real estate tax exemption, all you need to do is to apply to the municipality to which your real estate is affiliated with a petition.

How is Property Tax Configured?

You could not pay your property tax for various reasons. The restructuring opportunity offered by the state is an opportunity for you to pay off your debts. Now, let’s explain how to apply for property tax structuring, what you may encounter in this process.

Real estate tax structuring is not a process done at regular intervals. Therefore, relying on structuring and not paying your debts may create bigger problems for you. There are different ways you can follow to restructure your debts in the tax offices of the Ministry of Finance. First of all, you should go to the tax office to which the real estate is connected and apply for configuration. You can structure your debt by processing the forms you fill out at the tax offices. If you wish, you can also apply from the e-government and Revenue Administration website. The point you should pay attention to about the application is that you do not exceed the application deadline.

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