العربية
1-Understanding Luxury Real Estate Tax in Turkey:
- Known in Turkish as “Değerli konut vergi,” it is a tax imposed exclusively on luxury properties in Turkey.
- with a value exceeding five million Turkish Liras or its equivalent in foreign currencies.
2- Legislation for Luxury Real Estate Tax in Turkey:
- Governed by Law No. 7194 in Turkey, with amendments in 2020 (No. 1314).
- this law mandates the imposition of this type of property tax on high-value properties in Turkey.
3- Calculating Luxury Real Estate Tax in Turkey:
- The tax is calculated based on the cost per square meter of construction, determined by the Turkish Ministry of Treasury and Finance in collaboration.
- with the Ministry of Environment and Urbanization.
- The value of the land share is assessed according to legal tax principles by appraisal committees.
- For example, properties valued between five and seven million Turkish Liras have a tax rate of three percent.
- Properties ranging from seven to ten million have a six percent tax, while properties exceeding 10 million Turkish Liras incur a 10 percent tax.
4- Exemptions and Conditions:
- Properties undergoing demolition, becoming entirely unsuitable for habitation, or meeting specific tax exemption criteria are exempt from luxury real estate tax.
- Exemptions take effect from the date of the qualifying event.
- Conditions for exemption include ownership by public institutions, municipalities, universities, or those with the right of use.
- Individuals owning multiple properties meeting tax criteria within Turkish borders are exempt, with smaller properties meeting the criteria exempted if they serve as the owner’s sole residence.
- Unfinished residential properties in Turkey under construction and under the responsibility of construction companies are exempt until sold or owned for the first time.
Understanding these aspects of luxury real estate tax in Turkey provides clarity on the tax implications for high-value properties and the criteria for exemptions.
