Turkey’s upcoming tax package focused on the real estate sector

Discussions on the first tax package started yesterday at the Parliamentary Plan and Budget Commission. During this period, Dunya Newspaper reached the details of the second tax package.

According to the information received, the priority in the second tax package will be the taxation of “real estate”. The study conducted with impact analyses in order to determine the new tax rates to be applied on rents and real estate purchases and sales has reached the final stage. Accordingly, it is finalized that the second tax package will include a tax on the market value of residential and office purchases and rentals, and a 2-fold tax on those who sell their houses within 3 years of purchase and 1-fold tax on those who sell their houses within 5 years.

In addition, a “gradually increasing” additional property tax will be demanded from those who own a second or more houses, and “additional property tax” will be demanded from 600 thousand empty houses, which are called ghost houses. 230 thousand lodgings will be subject to a rent price regulation Penalty amounts will be increased for those who do not declare or under-declare their rental income. Likewise, penalty amounts will be increased for those who do not declare their rental expenses.

A “rent price” regulation will also be introduced for lodging houses with a number exceeding 230 thousand. Lodgings will be made available with a 20 percent price advantage compared to the rental value in the market. For this reason, price research will be conducted in regions where there are lodgings. Priority areas where inspections will be concentrated have also been identified. Buffets, beauty salons, aestheticians and doctors, hairdressers will be prioritized in the inspections, which are determined as areas with high loss, leakage and informality according to their earnings.