How Will Property Tax Change? CEESS Global Explains in Detail

Dear Hosts,

According to the news in ceessglobal.com, the draft study, which is expected to be submitted to the Grand National Assembly of Turkey this week with the Omnibus Law, was presented to AKP President Recep Tayyip Erdoğan yesterday by Treasury and Finance Minister Mehmet Şimşek, deputy ministers and officials from the Revenue Administration.

New Regulations Are Coming

Previously, income tax was not collected if real estate or land was sold after 5 years of purchase. However, according to the draft, this time restriction will no longer apply. Gains from all sales transactions will be subject to income tax, regardless of the year of sale. In this way, the land and development rent created by urbanization will also be taxed.

Important Changes in Land Registry

The second and the most important item of the study is the regional fair value application. The state will introduce a new system to tax revenues from the sale of real estate at their real value. This system envisages the establishment of a real estate value information center that will be integrated into the Land Registry and Cadastre Information System to keep data on the value of immovable properties and ownership information. Transactions in the land registry will be based on the information in this center and the appraisal report on the immovable.

Serious Increase in Taxes

The fair value will be determined regionally, and title deed fees and real estate tax payments will be made based on this price. With the entry into force of the new regulation, the transactions to be carried out in the land registry will no longer be based on the market prices of the municipalities, but on the market prices determined regionally by the state. This will significantly increase the taxes paid by millions of immovable properties based on the market value.

Dear homeowners, these changes will significantly affect the real estate market and taxation processes. As CEESS Global Real Estate Company, we will continue to inform you on these issues. You can contact us for your questions and more detailed information.

Best regards,

CEESS Global Real Estate Company