Valuable house tax takes effect as notices issued to property owners

Valuable house tax takes effect as notices issued to property owners

Valuable house tax takes effect as notices issued to property owners

Turkey’s new “valuable house tax” regulation went into effect on Dec. 7, and notices have started to be issued to landlords who own properties in metropolis Istanbul’s upscale neighborhoods.

The Turkish Parliament on Nov. 21 ratified a law that brings new regulations to the country’s tax system. According to the ruling Justice and Development Party (AKP), the regulations aim to collect “more tax from high-income citizens and less from low-income ones.”

The ratified law has proposed two new taxes, one of which is referred to as “valuable house tax.” The said tax will be imposed on landlords whose properties’ market value exceeds 5 million Turkish Liras (nearly $845,000).

According to the valuable house tax regulation, landlords whose property is valued between 5-7.5 million liras (approximately $1.27 million) will pay a 0.3 percent tax. The amount of tax imposed on properties which have a market value between 7.5-10 million liras (roughly $1.7 million) is stipulated as 0.6 percent in the regulation. Besides these, the tax rate on properties that worth over 10 million liras are 1 percent, according to the law.

The taxes will be paid in two equal installments. The first installment will be due in February while the second one is expected to be paid in August. Both payments can be made until the end of the said months.

Nevertheless, the law offers some tax exemptions. Women and unemployed persons subjected to the taxation can be exempted if they provide evidence on having no income follow. Retired citizens who also have no income except the pensions from the Social Security Institution (SGK) will also be exempted.

As the law took effect on Dec. 7, the General Directorate of Land Registry and Cadastre started to issue notices to property owners whose estates are in upscale neighborhoods, the daily Hürriyet reported on Dec. 14.

While the notice stated that the properties are subject to the valuable house tax, it also conveyed the citizens’ right to object to the valuation. The citizens will have 15 days to object.

The property values are being determined by the directorate, as the state’s body has evaluated the necessary reports it gathered from the Appraisers Association of Turkey.

After the valuation phase is completed, the directorate issues notices for properties whose value exceed 5 million liras. The results will be available from the body’s official website.