The declaration period for the valuable residence tax, which is mandatory for those whose house value exceeds 9 million 967 thousand lira within the borders of the country, expires on February 20.
Ali Yüksel, President of the Real Estate Law Institute, gave information about the valuable housing tax declaration process, which will end on February 20.
Reminding that this tax was regulated in Article 29 of the Real Estate Tax Law No. 1319 with the legal amendment made in 2019, Yüksel said that the regulation is not yet known enough to the public.
Yüksel said, “Since the subject of the tax is ‘housing’, there is a possibility that many homeowners will skip or forget their tax declaration and payment. Those whose house value exceeds 9 million 967 thousand liras with the values in 2023 must submit a declaration by February 20. In joint ownership (inheritance) “Owners can also submit a joint or individual declaration. However, in joint (shared) ownership, each stakeholder must submit a separate declaration,” he said.
“THOSE WHO HAVE SINGLE PROPERTY ARE EXEMPT FROM THIS TAX”
Ali Yüksel stated that those who own a single residential real estate within the borders of the country are within the scope of exemption and will not submit a declaration, and made the following warnings:
“People who have more than one flat but whose individual value is below 9 million 967 thousand liras will not declare it either. On the other hand, flats, residences and villas located in the leading districts of metropolitan cities such as Istanbul, Izmir and Ankara have become subject to valuable housing tax due to rising prices.” “The prices of summer houses in regions such as Bodrum and Çeşme often exceed this tax scope. Flat owners who do not know that they must submit a return by the end of February will be penalized. This will make the owners responsible for tax evasion, and will also result in uncollected income for the Ministry of Finance. will happen.”
Yüksel underlined that there is a fine if the declaration is not submitted, and stated that a delay interest of 3.5 percent monthly and 42 percent annually is applied.
“THE DECLARATION MUST BE SUBMITTED TO THE TAX OFFICES”
Yüksel, President of the Real Estate Law Institute, stated that the person who pays real estate tax should also pay this tax if his house is valuable, and said, “If the contractors whose main business is construction have the flats that fall to them due to these works, they will not declare it if they have not sold or rented it yet. However, it will be subject to tax when it changes hands.” he said.
Stating that the declaration should be submitted to the authorized tax office affiliated with the Revenue Administration, not to the municipalities, Yüksel gave the following information:
“The declaration can be submitted online. The tax can be paid in cash or in two equal installments until February 29 and August 31. Anyone who purchases or acquires an apartment with these values after February 2024, which is the declaration period, will submit a declaration next year. Declaration “The administration will not remind the tax to be given or pay the tax. While preparing the declaration, the property tax value given by the municipality for the buildings on that street will be taken as basis.”
Yüksel explained that people who did not file a return in 2022 and were penalized in terms of taxes in 2023 could reconcile with the tax administration by making a partial discount on the penalties through the application of regret.
“THERE ARE 3 DIFFERENT TAX RATES DEPENDING ON THE VALUE OF THE HOUSE”
Ali Yüksel stated that there are 3 different rates regarding the taxable base for valuable housing tax and said, “Those whose value is between 9 million 967 thousand liras and 14 million 951 thousand liras must pay 3 per thousand tax for the value exceeding 9 million 967 thousand liras.” he said.
Stating that the tax application is 6 per thousand between 14 million 952 thousand liras and 19 million 936 thousand liras, and 10 per thousand for residences worth more than 19 million 936 thousand liras, Yüksel said, “Of course, payments will be made at those rates for the sections falling into other brackets here. The figures will be determined during the declaration process.” It will come out clearly.” he said.