Everything You Need to Know About Property Tax: Calculation, Payment, and Detailed Guide

Owning real estate comes with certain legal obligations. One of the most important of these obligations is property tax. Property tax is a type of tax that must be paid for all buildings, lands, and plots in Turkey. In this article, we will cover all the details you need to know about property tax, calculation methods, payment processes, and important points to consider.

1. What is Property Tax and Who Pays It?

Property tax is a type of tax levied on owned real estate. This tax is collected by municipalities and used to finance local services. Those liable to pay property tax are:

• The Owner of the Real Estate: The person or entity registered in the title deed.

• The Usufructuary: The person who has the right of usufruct over the real estate.

• The Possessor: The person who actually uses the real estate (if the owner is unknown).

2. For Which Real Estate is Property Tax Paid?

Property tax is paid for the following real estate:

• Buildings: Residences, workplaces, factories, warehouses, etc.

• Lands: Plots of land without any structures on them.

• Grounds: Agricultural lands, forest lands, etc.

3. How is Property Tax Calculated?

Property tax is calculated based on the assessed value (rayiç bedel) of the real estate. The assessed value is the value determined according to market conditions in the area where the real estate is located. The steps for calculating property tax are as follows:

• Determination of Assessed Value: The assessed value is obtained from the municipality where the real estate is located.

• Application of Tax Rate: The tax rates specified in the relevant laws are applied to the assessed value. Tax rates may vary depending on the type and location of the real estate.

• Calculation Formula: Property Tax = Assessed Value x Tax Rate

4. Property Tax Payment Periods and Methods:

Property tax is paid in two equal installments per year. The payment periods are as follows:

• 1st Installment: Until the end of May.

• 2nd Installment: Until the end of November.

Property tax payments can be made using the following methods:

• Municipal Treasuries: Payment in cash or by credit card at the relevant municipality's treasuries.

• Banks: Payment through the branches or internet banking of banks contracted with municipalities.

• PTT Branches: Payment at PTT branches.

• E-Government: Online payment through the E-Government system.

5. Property Tax Exemptions and Reductions:

In some cases, property tax exemptions or reductions may apply. Those who can benefit from exemptions and reductions are:

• Pensioners: Reductions may apply to pensioners who own a single residence.

• Veterans and Relatives of Martyrs: Veterans and relatives of martyrs who meet certain conditions are exempt from property tax.

• Disabled Individuals: Reductions may apply to disabled individuals who own a single residence.

6. What Happens If Property Tax is Not Paid?

If property tax is not paid on time, a late payment penalty is applied. In addition, enforcement proceedings may be initiated for unpaid property tax debts.

7. Tuna Project's Property Tax Consultancy Services:

As Tuna Project, we provide consultancy services to our clients in all processes related to property tax. Our expert team assists you with property tax calculation, benefiting from exemptions and reductions, payment processes, and all other related matters.