+90 532 637 1 404
+7 937 534 02 36
In 2017, the Ministry of Finance of the Republic of Turkey launched a state-of-the-art application according to which landlords (property owners) must fill out arental income tax return .
Income Tax in Turkey
For the maximum convenience of users, a virtual multifunctional revenue management system was created. Through this platform, you can submit a declaration of payment property tax in 2020 year (information on wages, securities and other types of income).
The interface of the application is quite simple and every user will be able to understand it. By submitting information about real estate income tax, The declaration has already been partially filled out by representatives of the tax service, you will only need to enter the missing information.
Responsible representatives of the Turkish Revenue Administration regularly monitor, modernize the system and additionally introduce convenient functions. For example, the system automatically calculates the amount of rental income tax.
Income tax in Turkey on real estate and rent
Content:
- Income Tax in Turkey
- Property tax rate in 2020
- Income tax on the purchase of real estate
- Property tax on cadastral value
Fig.1 Income tax in Turkey on real estate and rent
In 2017, the Ministry of Finance of the Republic of Turkey launched a state-of-the-art application according to which landlords (property owners) must fill out a rental income tax return.
Income Tax in Turkey
For the maximum convenience of users, a virtual multifunctional revenue management system was created. Through this platform, you can submit a declaration on the payment of real estate tax in 2020 (information on wages, securities and other types of income).
The interface of the application is quite simple and every user will be able to understand it. When submitting information on real estate income tax, the declaration has already been partially filled out by representatives of the tax service, you will only need to enter the missing information.
Responsible representatives of the Turkish Revenue Administration regularly monitor, modernize the system and additionally introduce convenient functions. For example, the system automatically calculates the amount of rental income tax.
Every taxpayer in Turkey who receives income from salary, rental of real estate and any other type of earnings is obliged, in accordance with the legal framework, to file a declaration through the official portal of the Gib.gov.tr.
Property tax rate in 2020
Compared to European countries, the tax rate in the Republic of Turkey is considered low. Real estate tax is calculated based on the minimum cost per square meter of the building and the minimum price of the land.
By law, almost everyone must pay income tax in Turkey on real estate and rent. The exceptions are the following situations:
- The tax exemption is provided that the rental amount of residential square meters is not more than 5,400 Turkish liras.
- The limit of the declaration for commercial premises – working offices is 30 thousand liras per year.
Provided that the rent for the calendar year is higher than 5,400 lira, then income tax is compulsory. Citizens who receive rental income must pay annual income tax by filling out and filing a return through the proposed application.
As practice shows, some people try to illegally rent out real estate and deliberately underestimate the rental amount to 5,400 lira in the contract concluded with the tenant.
In any case, everything secret becomes apparent, and when the tax service or representatives of the financial police find out about it, a large fine is issued in the name of the landlord.
Payment on the declaration for each previous year is made in March. The amount not subject to income tax on rental housing is subject to accrual each year. In the event that the rental income exceeds 5,400 Turkish liras, then income tax will be paid on the amount remaining of the deductible part of the expenses.
Income tax on the purchase of real estate
After receiving the certificate of ownership, the new owner pays the fees associated with registration and registration. The amount of such payments is approximately 4% of the total value of the property.
Property tax on cadastral value
During the 1st year, it is allowed to buy/sell/exchange 2 units of residential or non-residential real estate. Income tax on the sale of real estate is not payable if the amount of profit (the difference in the price of the cadastral value of the property will not exceed the amount of 15 thousand lira per 1 calendar year).
Proceeds from the sale of real estate, obtained through purchase or exchange, for a period of less than 5 years, and for an amount exceeding more than 15 thousand Turkish liras, at the rate of 1 year, are taxed. The income tax rate will be calculated at a rate of 15% to 35%.