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New Regulations Regarding the Valuable Housing Tax and the Related Communiqué

The regulations that will be applicable from 1 January 2021 regarding the Valuable Housing Tax Implementation Communiqué are as follows:

  • Those who have a single residential property in Turkey are exempt from this tax.
  • For those who have more than one residential property, this tax exemption will apply to the lowest value real estate that falls under the valuable housing tax. This includes the right to usufruct.
  • Furthermore, this exemption will apply to the part of a person’s shares if the person owns a percentage of shares in a single residence.
  • If the value of residential immovables subject to valuable housing tax is between TL 5,000,000 and TL 7,500,000 (including this amount), the tax will be at 3 per thousand for the part exceeding TL 5.000.000.
  • For residential immovables with a value up to TL 10.000.000 (including this amount), tax will be in the amount of TL 7,500 for the initial part of TL 7,500,000 and 6 per thousand for the value in excess of TL 7,500,000.
  • For residential immovables with value over TL 10,000,000, tax will be in the amount of TL 22,500 for the initial part of TL 10,000,000 and 10 per thousand for the excess amount.
  • In case of ownership of a residential immovable in the form of shared ownership or joint ownership, the total value of the immovable will be taken as basis.
  • Declarations, on the other hand, will be submitted to the tax office where the immovable is located, with a document stating the tax value of the building, which can be obtained from the municipality where the immovable is located, until 20th of February of the relevant year.
  • Taxpayers, who are liable in terms of income or corporate tax, will submit their valuable housing tax returns to their registered tax offices.
  • In case of real estates, which are under the jurisdiction of different tax authorities, are declared in the same declaration, the declaration may be given by the taxpayer to any of the authorized tax authorities where these real estates are located.
  • Taxpayers may either send their declarations electronically themselves, or give them in the form of an e-declaration by signing a contract with an independent accountant, an independent accountant and financial advisor or a sworn financial advisor who is authorized. If the declaration is submitted electronically, the document stating the tax value of the residential immovable to be added to the declaration will be forwarded to the relevant tax office by hand or by mail within 15 days following the date of the declaration.

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Tunç Fırat Dereli

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