by Melih Alsaç
Property tax is a tax that real estate owners in Turkey must pay to the state on their property. However, who has to pay this tax and the exemption conditions vary according to the status of the property owner and the characteristics of the real estate. So, do property tax obligations depend on the owner or the type of real estate? In this article, you will find information on the main issues related to property tax.
Get information about property tax payment obligations and exemption conditions.
What is Property Tax?
Property tax is a type of tax that must be paid annually on immovable property in Turkey. This tax is paid to the municipality to which the immovable property is attached and is calculated on the value of the property. The purpose of property tax is to help local governments finance public services. For detailed information Revenue Administration's property tax guide you can examine.
Who is liable for property tax?
The property owner usually pays the property tax. However, this obligation may vary depending on the status of the owner or the specific situation of the real estate. For example:
- Property Status: The new owner who inherits real estate must pay the real estate tax. If the former owner is exempt because he/she is retired, this exemption is not transferred to the new owner.
- Intended Use of the Property: Properties protected as cultural assets or natural protected areas are exempt from real estate tax. For details Related page of the Ministry of Culture and Tourism you can visit.
Who Can Be Exempt from Property Tax?
Property tax exemptions are granted to property owners who meet certain conditions. The following groups may be exempt from property tax if they meet the requirements:
- Pensioners Pensioners who reside in Turkey and have a single residence are exempt from real estate tax if they meet certain conditions.
- Housewives and People with Disabilities: Housewives and disabled individuals with no income do not have to pay property tax.
- Veterans and Martyrs' Relatives: Veterans and widows and orphans of martyrs are exempted from real estate tax for their single dwellings.
- Unemployed People who are officially unemployed may be exempt from property tax if they meet certain conditions.
Learn about property tax exemptions.
Exemption Requirements and Application Process
Those who wish to benefit from property tax exemptions should apply to the municipality to which they are affiliated. During the application, documents proving the status of the person must be submitted. For example, a retired person may submit a pension certificate, while a disabled person may submit a disability report. Once the application is approved, the property owner is exempt from paying property tax for a certain period of time.
Property Tax Calculation Method
Property tax is calculated based on the rates determined by the municipality to which the real estate is connected. These rates vary according to criteria such as the location, type and value of the real estate. Property tax is usually paid in two installments; the first installment is paid in May and the second installment is paid in November.
Expiration of Property Tax Exemptions
Property tax exemptions expire when there is a change in the status of the property owner. For example, when a retired property owner passes away, the heirs may not benefit from this exemption and will have to pay taxes. Likewise, if the health condition of a disabled person improves or a homemaker starts working, the exemption status is reviewed again.
Frequently Asked Questions about Real Estate Tax (FAQs)
- Does property tax have to be paid every year?
- Yes, it is a tax that has to be paid every year and the property owner has to fulfill this obligation.
- Where should I apply for property tax exemption?
- For an exemption, you must apply to the municipality where your property is located.
- Why should I have to pay property tax when I am entitled to an exemption?
- The right to exemption is subject to certain conditions. If these conditions change, you may lose your exemption.
- If I sell my property, who pays the property tax?
- After the sale of the property, the new owner pays the property tax.
- Is there another way to avoid paying property tax?
- Exemptions are only granted in certain cases. Otherwise, you are required to pay your tax.
- How can I check my exemption entitlement?
- You can check your exemption status by contacting the municipality or through online services.
Conclusion
Property tax is an important obligation for real estate owners in Turkey. However, the payment of this tax and exemptions may vary depending on the status of the property owner and the characteristics of the real estate. Property owners who wish to qualify for exemption must fulfill the necessary conditions and apply to the municipality. Having detailed information on this issue is important for property owners to fulfill their legal obligations.
