Bodrum, situated on the Aegean coast of Turkey, is a breathtaking coastal city that has attracted many property investors. You should understand the tax obligations if it is a vacation home or a long-term real estate investment. In this blog, we discuss the property rates in Bodrum, how property taxes are calculated, and useful information on how to settle your property tax on time to be safe from penalties.
Property Tax Rates In Bodrum
As this word is understood property taxes in Turkey (‘Emlak Vergisi’) are fixed according to the classification of the property and to that of the district of its location. Being a famous metropolitan municipality, Bodrum has also defined property tax rates for residential, commercial, and land properties.
Here are the main property tax rates in Bodrum:
Residential Properties:
Property tax for a residential house in Bodrum is 0.2 % of its assessed property value. This is the basic rate for houses in metropolitan areas like Bodrum.
Commercial Properties:
The tax rate for properties in use such as buildings housing shops, offices, and hotels is 0.4%. This is because such structures are considered to have a higher commercial rate in a busy place like Bodrum.
Land:
The property tax rate for land in Bodrum also stands at 0.2% of the assessed value of the land. However, if the land has not been built on (vacant land), then the tax is lesser at 0.1% so as to encourage building development.
Agricultural Land:
Generally, the property tax rate for agricultural land is 0.2%. However, when the agricultural land in use is pending certain conditions, the owner can receive some tax alleviations or even total exemptions.
Exemptions and Deductions on Taxes
Turkey has in place a series of tax exemptions and reductions for certain people. If you own a house in Bodrum, you may be entitled to some of these benefits, thus lowering the property tax due and payable by you. The main exemptions and reductions are given below:
Retirees:
If you are a pensioner and earn no other income than a pension, you may not be liable for property taxes in Bodrum on your principal residence, subject to the house being under 200 square meters.
Disabled Individuals:
Properties owned by disabled persons, war veterans, plus some other low-income earners may not attract property tax for the primary residences.
First-Time Home Buyers:
There are some tax concessions for first-time home buyers. However, there appear to be specific conditions under which this applies. It’s worth looking up with the local municipality whether you fall under this.
Property under Construction:
If you possess land or constructions still under development, you might qualify for lower property tax rates, especially in cases where the construction will be intended for dwelling purposes.
How to Pay Property Tax in Bodrum
Paying property tax in Bodrum is an easy process. There are many ways to ensure that the payments are made promptly:
Online Payment:
A good number of property owners in Bodrum would choose to settle their property taxes through the municipality’s official website. All that is required is entering one’s tax identification number, filling in one’s property details then paying as directed.
Municipality Office:
In Bodrum, you can also pay your property taxes at the local municipality office in person. Pay attention to carrying property documents and identification to enable smooth processing of payments.
Bank Transfer:
Most of the banks within Turkey have a property tax payment service. Either visit the bank or use the online banking system to pay the taxes. It is advisable to have the property details and the relevant municipality’s bank account beforehand to make a transfer.
Conclusion:
The rates of property tax in Bodrum are similar to those of the other metropolitan areas in Turkey, with different rates charged for residential, commercial, and land properties. Whether it is for a vacation home or a business premise in this marketable coastal city, it is paramount to know the tax requirements.
Knowing how properties are taxed, the tax rate, and making timely payments will help you avoid inconveniences such as fines, and help in protecting the investment in Bodrum. Where a property owner is eligible for any exemptions or reductions, such should be utilized to lower the tax. Staying current with your real estate tax responsibilities will allow you to appreciate the beauty of Bodrum without fear of losing your money.
