Municipalities collect billions of liras in Property Tax from 25 million homeowners. This tax is an invaluable resource for municipalities. Some people are exempt from the tax, which can be paid in two installments in May and November. According to the law; unemployed, those living on retirement pensions (including widows and orphans), housewives, those without income, veterans and widows and orphans of martyrs do not pay Property Tax.

PERSONAL APPLICATION REQUIREMENT

In order to benefit from zero tax, the house must not exceed 200 square meters gross and there must be only one residence. Despite this, there are millions of citizens who have tax debts or pay taxes. It is possible to prevent this. In order to benefit from tax exemption, it is necessary to apply to the municipality, fill out the ‘tax exemption form’ and apply in person.

IF THERE IS A TENANT IN THE HOUSE

It is not necessary to live in the house in person for the zero-rate Property Tax. Those who have no other income other than their pension do not pay any tax if they rent out their residence and live in a rented house themselves. However, if a retired or unemployed person rents out their only home and lives in a house belonging to their spouse, son or daughter, they cannot benefit from the zero-rate Property Tax.

THOSE WITH OTHER INCOME...

If a retired person has interest income from a bank, savings or bonus, they pay tax. If retired people and housewives have income exceeding 30 thousand liras in 2017 such as deposit interest, repo, foreign exchange account interest, fund share income, they cannot benefit from the zero-rate Property Tax in 2018. On the other hand, those who have real estate other than their home, such as land, also pay tax.

REQUEST A REFUND

Retirees, housewives, unemployed people, disabled people, veterans, widows and orphans of martyrs who unknowingly pay Property Tax; can appeal to the municipalities for the refund of the undue payment and request the 5-year Property Tax retroactively. To do this, a ‘correction petition’ (above) must be submitted to the municipality’s real estate unit, citing ‘Article 120/2 of the Tax Procedure Law’ as the basis.

NEWLY RETIREES WILL PAY FOR THIS YEAR

Those who retired in 2018 will pay this year’s Property Tax. Those who meet the necessary conditions and notify the municipalities will not pay tax for the single residence they own starting from the year following their retirement (those who retired this year will pay 2019). Those who retired in 2017 will not pay tax starting from this year.

DISABLED PERSON’S IDENTITY IS ENOUGH

For disabled people not to pay Property Tax for a single residence, it is sufficient to prove that they are disabled. To do this, they must submit a form filled out with a photocopy of their disabled ID card to the municipality.