By Justin Mays:
On the 28th of March 2022, President Recep Tayyip Erdogan announced that the housing VAT will be increased in some areas and properties of a certain size.
As many may know, property VAT is one of the fees that you have to pay on time because it benefits the community you reside in one way or the other. Some of it goes towards public safety, maintaining public schools, maintenance of sewage systems, roads, and parks.
The tax regulations set in 2013 whereby VAT was based on the class of construction and the neighborhood where the property is built will be abolished.
A 7 percent increase will be summoned to residential properties. Residences with a net area of less than 150m2 will now be paying 8 percent compared to the 1 percent they were paying previously.
However, residences that are in the urban regeneration areas with a net area of less than 150m2 will continue to pay the 1 percent they were paying previously. If the property exceeds 150m2, the VAT for the remaining square meters will be calculated at 18 percent.
Before this change, houses with over 150m2 net area were charged 18 percent VAT and with this new regulation, 150m2 of the residence will be charged 8 percent VAT, and the VAT for the remaining part will be billed 18 percent.
For land and land
deliveries, the VAT has been reduced from 18 percent to 8 percent. It should be
noted that VAT returns will be reduced going forward.
