What is Valuable Housing Tax?
According to the bill adopted in 2019, the value housing tax must be paid on housing valued at more than 5 million Turkish liras. Residential property owners who exceed 5,000,000 TL in 2020 bear the value housing tax and will declare and pay the value housing tax in 2021. The properties that will be subject to the value housing tax are determined by the General Directorate of Land Registry and Cadastre or approved appraisal companies.
Owners of real estate that have been identified as valuable housing are notified and announced on the General Directorate of Land Registry and Land Registry page. When the price is not determined by the General Directorate of Land Registry and Land Registry, the present value determined by the municipality in which the property is located is taken as a basis. Real estate owners have the right to object to the price determined by the relevant directorate within 15 days. Objections are also completed within 15 days. Non-objectionable buildings are subject to the value housing tax.
What Are Valuable Housing Tax Rates?
People whose house is worth more than 5 million TL are liable to pay valuable housing tax in addition to the property tax. There are 3 tax brackets based on the value of the property:
Real estate owners whose houses are worth between 5 million and 7.5 million TL are 3 per thousand.
Real estate owners whose houses have a value between 7.5 and 10 million TL are 6 per thousand,
Real estate owners with a value of 10 million TL or more are liable to pay tax at the rate of 10 per thousand.
For example, people whose house is worth 20 million TL are obliged to pay a house tax of 200 thousand TL every year.
Who is Exempted from Valuable Housing Tax?
Persons who have only 1 house and meet certain conditions are not liable to pay valuable house tax:
Persons who document that they have no income
Retirees who have no income other than the salary they receive from SGK
Persons who own a single house with shares
In addition to those who have a single residence and meet the aforementioned conditions, people who have many residences registered on them because they do construction work are also exempt from this tax.
When is Valuable Housing Tax Return Filed?
Tax liability begins in February of the year following the determination that the value of the house is over 5 million TL. A property declaration must be submitted by the 20th of February. Valuable housing tax can be paid in two equal installments in February and August.
