Real Estate in Turkey Do Foreign Investors Pay Property Tax

The owners for Property in Turkey are required to pay certain fees and taxes on time, and
property tax is one of these taxes. The real property tax is paid by the real owner of the property
or the beneficiary of the property. In the absence of these individuals, the property tax is paid by
the owner of the right to dispose of the property.
The real estate tax is imposed on properties located within the Turkish border and is taken by
calculating the tax rate from the prevailing price of the property and is paid to the concerned
parties at certain times of the year. Each year, the tax calendar determines the dates of
payment of taxes for that year. According to the tax assessment issued in 2016, the dates of
payment of property tax in this year is as follows:
 First Installment: Starts from the beginning of March and lasts till the end of the official
working day on May 31st, which is on Tuesday.
 Second installment: starting from the beginning of September and continuing to the
end of the official working day of the 30th of October, which is on Sunday.
The real estate tax is paid by paying the municipality that the property is located within its
administrative borders. If the property to be paid is located outside the city and the municipality
concerned does not operate the electronic system, the tax can be paid by a money transfer
through the Ptt. Provided that the number of the real estate taxpayer is stated.
Many foreign investors wonder whether they are subject to the real estate tax law or not. It can
be said that foreign investors who own property rights in Turkey are subject to the laws that
landlords are subject to in Turkey, so they are subject to the real property tax that is subject to
realtors in Turkey.
However, according to the Turkish Real Estate Tax Law, buildings and real estate belonging to
foreign countries or representatives of international organizations in Turkey are exempted from
real estate taxes, which are used as an embassy, consulate, international institution or the like
(subject to reciprocity).
Exemption of buyers for new properties from the property tax for 5 years:
According to the Property Tax Law No. 1319, the real estate tax is paid for every property
located within the Turkish borders. There are also exemptions that include taxpayers. While
some individuals are exempt from paying taxes in full, some are exempted from individuals for
the payment of a specified portion of the tax and for a specified period of time. Individuals who
are exempt from paying a specific part of the tax for a specified period are buyers of the newly
built real estate. Anyone purchasing a residential unit within a newly constructed building is
exempt from paying a specific part of the real estate tax about the housing unit concerned 5
years from the date of acquisition. This exemption is called "temporary exemption", where the
tax is deducted from 25% of the taxable value of the property concerned. The property tax is
calculated as 75% of the remaining value subject to real property tax.
For example, to say that Mr. Ahmed bought a housing unit on 2015.01.01, from a building,
which was completed on 124.01.01, and the taxable value of the housing unit is 200.000 lira. In
this case, Mr. Ahmed benefits from the "temporary exemption" A specific portion of the tax