It is necessary for the citizens and the owners of property in Turkey to pay certain fees and taxes in a timely manner, and Turkey real estate tax is one of these taxes. the rightful owner of the property is the one who pays the real estate tax, or the beneficiary person of that estate, and in the absence of the two men, the real estate tax will be paid by the owner who have the right to dispose the property.
The real estate tax is imposed on the estates inside the Turkish border, and is taken by calculating the tax ratio from the current price of the property, and are repaid to the concerned authorities in the determined dates of the year, where every year the tax calendar is what determine the tax payment in that year, and according to the tax calendar issued in 2016, the payment of real estate tax in 2016 schedule is as the following:
- First Installments: starts from the beginning of March and will continue till the end of official work day on May 31, which is Tuesday.
- Second Installment: starts from the beginning of September and will continue till the end of official work day on October 30 which is Sunday.
The real estate tax to be paid by the municipality which the property is located within its administrative borders, and if the property is located outside the city and the concerned municipality is not working with the electronic system then you can pay the tax through Money Order via the (Ptt) or bank transfer to the municipal’s account but in this case, you need to mention the real estate taxpayer’s number.
Many foreign investors are wondering whether they were a subject to the law of real estate tax or not. It can be said that foreign investors who have the right to own property in Turkey are subject to the laws that property owners in Turkey are a subject to. Consequently, they are subject to the real estate tax that property owners in Turkey are subject to.
However, according to the Turkish real estate tax law, the buildings and property related to the foreign states or representations of international organizations in Turkey, which are used as an embassy or consulate or international organization or something like that (condition of reciprocity) are exempted from real estate taxes.
Exempting buyers of new properties from real estate tax for 5 years:
According to the real estate Tax Law No. 1319, you need to pay the real estate tax for every property resides inside the Turkish border, as there are some exemptions, which include the assigned individuals to pay the tax at a time when some individuals are exempted from full taxes payment, other individuals are exempted from paying a specific part of the tax and even for a limited period of time, and individuals who are exempted from paying a part of the tax for a specified period are the buyers of newly built properties, so all of who buys a residential units within a building newly established, shall be exempted from paying a specific part of the real estate tax of the concerned residential unit for a period of 5 years from the date of acquisition, this is called the "temporary exemption", where %25 of the property’s tax value is to be dropped, and the property’s tax will be calculated for %75 of the remaining taxable value of the real estate tax.
Example: Let's say Mr. Ahmed has bought a housing units on 2015.01.01, the building has been complete its establishment on 2014.12.01, and the taxable housing units’ value of 200 thousand pounds, in this case Mr. Ahmad will get a benefit from the “temporary exemption" for paying a specific part of the tax during 2016 -2020, where 50 thousand Liras are to be dropped from the taxable value of the property, and the real estate tax will be calculated of the remaining 150 thousand Liras only.