Turkey Property Tax Rate 2020: What are the Advantages of Paying More? This comprehensive guide contains everything you should know about the 2024 property tax rates, calculation methods, and payment timelines.
Tax is expected to be paid by property owners, normally imposed on a value at some period. Please note that such information is current as of the date of this publication, and is subject to change based upon future events. This article can help you if you own a property or need more information regarding property taxes.
Property tax: What is it?
Property owners, whether they be individuals or organizations, are required to pay property taxes. In Turkey, municipalities are responsible for collecting this tax, which is based on the real estate value. Immovable assets including homes, land, companies, and other real estate properties are subject to this tax.
The Real Estate Tax Law No. 1319 states that the tax is computed using the real estate valuation and the applicable tax rates. Municipalities establish a valuation system that determines the value of real estate. The local real estate policies of the municipality determine the tax rate.
Every year, those who own property—individuals or organizations—pay taxes. There are two installment options for payment.
Calculating Property Taxes
The procedures used to calculate property taxes for various types of properties are crucial. These techniques assist you in figuring out how much the property is worth and how much taxes to pay.
How to Value a Property
Finding the value of your property is the first stage in the calculation procedure. Value is typically ascertained by examining the real estate market sales prices of comparable properties. If the tax office feels it is necessary to confirm the worth of your property, it may nevertheless use its methods of valuation.
Value Increase Rate Calculation
The rate of appreciation is another element to take into account throughout the computation procedure. This ratio shows how much the value of your property grows each year. The rate of appreciation is normally calculated on inflation, market circumstances, and performance in the real estate market.
The Tax Amount Calculation
Taxes on your property are something that you figure out in the last step of the computation process. The evaluation of your property and the rate at which it increases in value are just two examples of what criteria are packed into the tax amount. Many times, the amount of tax is calculated by applying a formula method or technique.
Dates and Choices for Payment
The Tax Office establishes the rules and methods of reporting incomes. Here is a detailed post about how the tax payment works.
Property tax is collected in two stages. The initial payment is due by May 31, 2024, while the second installment should be received no later than November 30, 2024. Taxpayers can even pay both installment payments at once if they so desire.
Declaration of Property
The property owner must file a property declaration as the initial step in the tax payment process. You can use the Land Registry Real Estate Declaration page via e-Government, or you can apply in person to the municipality that the real estate is linked with, to complete this process. In addition, the following paperwork is needed for real estate declaration:
- The homeowner's identity card, in photocopy
- A copy of the residency permit
- Address and phone number
- Construction licence
- Form for notifying of real estate (must be completed based on land register records.)
Procedure for Tax Objection
Property owners can challenge the tax assessment through the appeals process. You can use the appeals process if you believe the tax assessment was made incorrectly or if you believe the tax amount was computed improperly.
To request the objection procedure, you have to file a petition and an application vis-à-vis the competent tax office. With your petition, you must include supporting documentation and a justification of why you disagree. Your objection along with the supporting documentation will be reviewed by the tax office after you submit an objection.
The tax office will analyze your objection and decide what needs to be done. If your appeal is successful, the tax register will be updated and the amount of tax set out. If your appeal cannot be contested, then unfortunately you will have to follow the process of paying tax.
Property owners can protect themselves from unfair taxes and correct errors in assessments through the property tax appeal process.
