Tax Codes for Owning Properties in Istanbul

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Paying property taxes in Turkey, especially for foreign businessmen and individuals, can be an extremely complex procedure. It is our job at Reha Medin International to walk our clients through these procedures and their options with regard to residence status, primary or tertiary property status, amongst many other variables. For home owners and tenants, we will outline for you options concerning Turkish property taxes to ensure that our clients are fully understand the pros and cons of purchasing property in Turkey.

Property taxes, or Emlak Vergisi, are to be paid each year on the tax values of your land at rates which range from 0.1 to 0.3 percent. Pay attention to this: in metropolitan municipality areas such as Istanbul, tax rates are applied twice, which has been cause for concern with clients in the past. Not to worry, the brief consultation with one of our well-seasoned colleagues will ensure full understanding of the issues at hand.

For renters of properties, property taxes still apply so long as the owner makes less than TL 3,600 annual rental income on the property. Property owners wishing to rent their properties tend to have many questions concerning the legality and extent to which they may lease their property. Furthermore, without the property owner living there, how manageable is this source of income through the tax code. Each of these questions can again be answered by any of our service representatives.

To pay property taxes, you will go to local municipalities with two installments, one in the spring (around march to may) and one in the winter (in November). The payment, according to consistent policies on the local level, can be paid by cheque, online, at banks, or in cash.

Be aware, there are strict penalties for those property owners who do not pay their taxes in a timely fashion. However, we have suggestions for our clients to make payment processes easier and accessible even internationally.