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Environmental Service Taxes

Because the introduction of taxes is based on fiscal purposes, there is no environmental tax application in Turkey.

Environmental taxes in EU and OECD countries aim to reduce their use by imposing an additional cost on goods and services to ensure the development of environmentally friendly technologies. There are no taxes on the environment in Turkey except the environmental cleaning tax.

Taxpayer of Property Tax

Property tax is paid by the building owner. If the building has both owner and usufruct owner, the usufruct owner is responsible for the building’s obligations.

Obligations of those who own a building are determined in their share proportions, and the case of associate ownership partners' shares is unclear. All are entitled together and equally to the building. That is why it is assumed that there is a chain of responsibility in the ownership of the subsidiary.

Notices of Property Buyers or Acquisitors

The person who acquired a new real estate according to the Property Tax Law does not have to pay property tax for the year in which he/she got the property.

At the year-end, the taxpayer acquiring the property must notify the municipality about the property's location. If the person acquired the property in November, he/she should submit the notification within three months, for example, February.

Property taxpayers must notify of the completion of the new construction. If the part of the construction is already under use before construction is finished or it will be, it also should be notified. Sellers of real estate may conduct a follow-up of past debt, i.e.: property and environmental tax related to the property they sell late.

It is advantageous to inform the municipality of the real estate’s location with a petition including sales information immediately after the sale of real estate to avoid follow-up of the related sales in the future.

Beginning and Ending of Liability in Real Estate Tax

The building tax begins from the date on which changes occur, and discretionary actions are taken in case of reasons that change tax values, the date on which the discretionary transactions are carried out every four years following the exemption date.

For buildings that are burned down, destroyed, or subject to exemption while being taxable, the occurrence date of these events will expire following the installment. Additionally, taxes for buildings, prohibited based on the authorization given by the laws, will not be collected as long as these situations exist.

Time Out in Real Estate Tax

The start of the calendar year is when tax begins. The provision that is not notified to the tax and taxpayer within five years would be time-barred.

Limitations on taxes and penalties of buildings and lands not declared will start from the beginning of the year and are followed by the date it is learned, contracting entity that they are notified.

In this situation, buildings, lands, and terrains, excluded from the notification, should notify the taxpayer within five years of the start of the year following the date on which the municipality learned they are not notified or the property tax, which cannot be imposed within the period expired.

Rate of Real Estate Tax

The rate of real tax is determined as different and discounted rates according to the purpose the building is being used for, the location, and the owners' properties. The property tax rates are determined as 1000 for dwellings and 2000 for other buildings and businesses.

Councils of Ministers are authorized to reduce rates to half and increase them threefold. In buildings within the boundaries of metropolitan municipalities, these rates were fully increased.

Retirees, housewives, disabled people, martyrs, widows, or orphans who do not have any income are not required to pay property tax if they have any accommodation whose gross area does not exceed 200 sqm. The tax value that hits the share is applied with the discounted rate, and the taxpayer does not need to live in the residence.

People who have shares in more than one residence cannot benefit from the discounted rates. To benefit from the discounted rates, the person can apply to the municipality by submitting the proof of documents demonstrating the situation.

Real Estate Tax Calculations

Real Estate Tax can be calculated by;

  • Square meter unit value of the land the house or workplace, built on and the number of square meters of land share
  • Cost of square meters determined according to the status of concrete and carcass, masonry or wood of the house and building
  • Residences and business tax rates within or outside the metropolitan municipality
  • Exterior measurements of the building
  • Wear allowance reduction
  • Heater and elevator difference

Building Tax Value can be calculated by;

  • The average figures in the scale with a regular construction cost of square meters will be multiplied by the building’s surface area.
  • The difference as multiplications result will be added to the difference of the elevator, heating, and air conditioning of around 6% and 8%.
  • The depreciation share in correspondence to years and construction type is deducted from the total value fund.
  • After the depreciation share deduction, the amount or share of the land, determined according to the minimum measurements, is added to the remaining amount.

Payment of Real Estate Tax

The first installment of the property tax is to be paid in March, April, and May; the second one is in November. Real estate taxes of immovable buildings are paid by taxpayers who own the property.

Immovable property owners must apply to the real estate services or directorates of their respective municipal councils and make payments. Immovable properties should be paid to the municipalities to which the properties belong if the immovable properties are in another city.

So, the property tax can be paid to the municipalities through PTT or the property tax liability number into an account number of the municipalities. Additionally, the payments can be made online through the internet with the e-municipality system of the municipalities.

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