Turkey introduces new tax for upscale houses

ISTANBUL

An extra tax will be paid for houses with a value of more than 5.25 million Turkish Liras ($710,335) according to a communique published in the Official Gazette on Jan. 15.

The Valuable House Tax passed into law in late 2019, but its implementation was suspended for a year.

According to the legislation prepared by the Treasury and Finance Ministry, residential properties with a value between 5.25 million liras and 7.87 million liras ($1.05 million) will be taxed 0.3 percent of the amount over the base level.

Extra tax rate for residential buildings worth up to 10.5 million liras ($1.4 million) will be 0.6 percent for the amount over 7.87 million liras.

Houses with a value more than 10.5 million liras will be taxed 22,500 liras ($3,021) plus 1 percent of the amount over the base level.

The Valuable House Tax base for a residential building will be determined according to the valuation calculated by the General Directorate of Land Registry and Cadastre. 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. Owners will have 15 days to object to the valuation.

The Valuable House Tax statements, along with a tax form given by the local municipality, should be handed to the nearest tax department until Feb. 20.

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.

For instance, the owner of a house valued 6.82 million liras will pay 4,725 liras in precious house tax.