The current land values of properties such as residences, workplaces and lands that form the basis of real estate tax have been determined by valuation commissions. The tax to be paid for 4 years will be calculated based on this valuation value.

Citizens who see that the current value of their homes or workplaces has increased by 100 percent, 200 percent or 500 percent say ‘what should I do?’…

Let me cut it short… The time for objection has decreased… First, let’s answer the questions about the current value determination of the Real Estate Tax and the citizen’s right to object, and then let’s answer the questions about who has the advantage in real estate tax in order…

Is Real Estate Tax paid based on the current value?

The current value of the Real Estate Tax consists of the sum of the land value (for residences and workplaces) and the building value. Real Estate Tax is calculated by applying tax rates to this current value.

Who determines the current value of the real estate tax?

The Valuation Commissions determine the m2 land values that affect the current value on which the Real Estate Tax is calculated. Authorities from the land registry office and chambers of commerce also participate as members in the Valuation Commissions. The determined land m2 value is delivered to the municipalities. In municipalities and mukhtars' offices, the value of properties is included on a street-by-street basis. (The total land m2, whether residential or commercial, and the total construction cost of the building are used to form the Real Estate Tax base.)

Is the value to be objected to for 2023?

The value to be objected to if currently determined and found to be exorbitant is the 2024 real estate land value. The Real Estate Tax value for 2023 was already determined in 2019 for the next four years (2019, 2020, 2022 and 2023) and updated every year by taking into account the revaluation rate.

Currently; This market value determined for 2024 also binds the next three years. The market value determined for 2018 will also be the Real Estate Tax base for 2019, 2020 and 2021… (The value determined for 2018 will be increased by half of the revaluation rate each year for the next three years.)

Market Value objection process

The objection process begins after the date the citizen learns the new market value. However, there are also controversial issues in the depths of the legislation such as “When is the date the citizen learns the new real estate tax market value? When is the date the municipality announces it? When is the citizen considered to have received notification of the new market value?”

Discussions aside… It would be beneficial for citizens who see an exorbitant increase in real estate values to file a lawsuit against these values as soon as possible… Those who see an exorbitant increase in the land m2 values of their properties such as residences, buildings and workplaces;

However; it is also very clear that in any case, the issues that are not clear in the law should be regulated in the parliament by taking into account the relevant court decisions. We hope that these hesitations will be resolved in our laws when the next market value determination is made.

Which industrialists are exempt from Real Estate Tax?

With Law No. 7033, permanent real estate tax exemption was provided for buildings located in organized industrial zones, free zones, industrial zones, technology development zones and industrial sites. (Real Estate Tax Law Art. 4-m.)

Who will pay the Real Estate Tax of a house purchased in 2023?

Property owners must notify the relevant municipality of the residence or workplace they have newly purchased. The buyer does not pay tax in the first year. The first real estate tax payment for a buyer who purchased in 2023 begins in 2024.

The notification to the municipality must be made by the end of the year at the latest. The Real Estate Tax notification for real estate purchased in the last three months of the year can be made within three months of the purchase date.

Which buildings are subject to a discounted tax for five years?

One quarter of the tax value of buildings or apartments used as residences (not less than 2,500 lira) can benefit from temporary exemption for five years starting from the year following the completion of their construction.

Who will not pay the Real Estate Tax?

Those who have a single residence with a maximum gross area of 200 square meters;
Housewives and unemployed people who have no income,
Retirees who have no income other than the retirement pension they receive from the Social Security Institution (SSK, Bağ-Kur and Emekli Sandığı), (and their widows and orphans)
Disabled people,
Veterans,
Widows and orphans of martyrs can benefit from the discounted (zero-rate) building tax application.

When is the payment period for the Real Estate Tax?

The first installment of the Real Estate Tax starts in March and can be paid until the end of May. The second installment can be paid until the end of November. A monthly late payment penalty of 1.40 percent is calculated for payments not made on time.