18.02.2022/13

18.02.2022/13

Valuable Residence Tax

Summary: The tariff to be applied in 2022 of the valuable housing tax introduced by Law No. 7194 has been determined by the General Communiqué on Real Estate Tax Law Serial No. 80 published in the Official Gazette dated 21/12/2021 and numbered 31696 and the declaration must be submitted until the end of Monday, February 21.

2022 Valuable House Tax Tariff

In 2022, the valuable residence tax tariff starts from 6.173.000.-TL. Therefore, owners / usufructuaries / savers of residential real estate whose property tax value for 2021 exceeds 6.173.000.-TL and who meet the conditions specified in the law are obliged to pay this tax.

In 2022, the lower and upper limits (base) of the residential immovable subject to the valuable residence tax to be applied are determined as follows

Dear Residential Taxpayers

The taxpayer of this tax is the owner of the residential immovable property, the usufructuary, if any, and if both of them are absent, those who dispose of the residential immovable property as if they were the owner.

Those who own the residential immovable property in the case of shared ownership are liable in proportion to their shares, while in the case of joint ownership, the owners are jointly liable for the tax.

Valuable Housing Tax Declaration and Payment Periods

Taxpayers will be able to submit their declarations to the tax office until the end of the 20th day of February 2022 by attaching the document showing the building tax value (for the year in which the declaration is submitted and the previous year) from the municipality where the residential real estate is located. Since the 20th of February falls on Sunday this year, the declarations can be submitted until the end of the 21st of February.

The tax office where the declaration will be submitted is the tax office where the immovable property is located. The tax office where the immovable is located refers to the current tax office in provinces and districts with a single tax office; in districts without an independent tax office, the affiliated tax office (property directorates); in provinces/districts with more than one tax office, the authorized tax office where the residential immovable is located. In case the immovables declared in the same declaration are located in the jurisdiction of different tax offices, the declaration can be submitted by the taxpayer to any of the authorized tax offices where these immovables are located.

Valuable Housing Tax Exemption

a. Residential immovable properties owned by general and special budget administrations, municipalities, universities and the Housing Development Administration,

b. For those who own a single residential immovable property within the borders of Turkey and those who own more than one residential immovable property, the single residential immovable property (including the usufruct right) with the lowest value that is subject to the valuable housing tax (This provision is also applied to the portion of the shares of the mentioned persons if they own a single residential immovable property with shares),

c. Residential immovables belonging to foreign states and used as embassies and consulates, residential immovables for the residence of ambassadors and their outbuildings (provided that they are reciprocal) and residential immovables belonging to international organizations headquartered in Turkey and representative offices of international organizations in Turkey,

ç. Newly constructed residential immovables (including residential immovables left to the contractor who undertakes the contracting work in accordance with the contract in construction works in return for land) registered to the enterprises of those whose main activity is building construction (except in cases where these immovables are rented or otherwise used)

exempt from valuable housing tax.

80 Serial No. General Communiqué on Real Estate Tax Law can be found here.

Sincerely,

BİLGENER