Tax on the High-Value Residences

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Tax on high-value residences (hereinafter as ‘Tax’) was accepted and published in the Official Gazette on 7 December 2019 and entered into force by the Law No. 7194. The classification of the tax is wealth tax such as Motor Vehicle Tax and Real Estate Tax and will be applied only to residential real estates. Other types of real estate such as offices are exempt from this tax.

As per the regulation, Tax will be imposed for residential houses located in Turkey with a value of over TRY 5 million and be paid by the owners of immovable properties, usufruct owners or the users as the beneficial owners.

The Tax ratios on the value of the residences are as below;

Residential Real Estate Value Tax rate
Between 5.000.000 TRY up to 7.500.000 TRY 0.3%
Between 7.500.000 TRY up to 10.000.000 TRY 0.6%
Value over 10.000.000 TRY 1%

The taxpayers are required to make self-declaration by an annual filing which should be made in February every year and the tax will be payable in two instalments in February and August in the declaration year. The bases of 5/7.5/10 million will be revaluated according to inflation rate starting from 2021.

The taxable base is property’s value for real estate tax purposes, or the valuation made by the General Directorate of Land Registry and Cadastre (hereinafter as ‘Directorate’), whichever is higher. The valuation of the Directorate has already commenced and the records on the properties can be found on the website: after logging in with the Turkish ID number and the information of the property. The residences which are not yet valuated are recorded as ‘’the criterion you are looking for is not found, the valuation continues’’ in the system.

Objection Procedures and Exceptions :

The valuation will also be notified to the real estate owners once it is completed. If this value is not accepted by the owner, it is necessary to object within 15 days from the date of notification. In addition, if the objection period is missed, a “Seizure” can be placed in the self declaration in order to file a lawsuit within the next 30 days. According to the result of the case, the paid amount can be refunded.

Those who have no income, retirees, veterans, widows and orphans of martyrs, single residences which do not exceed gross 200 m² are exempted from Tax.

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