Bad news for homeowners: After those who rented, now those who will sell their homes and those who own more than one home will face new taxes. It has been reported that additional property taxes and title deed fees will be imposed on those who own more than one home in order to create resources for budget expenditures.
In addition, it is expected that taxes will also be collected from those who sell homes after the fifth year. It is stated that housing sales taxes will be calculated based on market values. Therefore, both those who sell homes and those who buy homes may face high taxes. There is also concern that the new regulations may cause an increase in home prices. It is stated that these regulations will be applied to sales after the law is enacted.
The Draft Will Be Presented to the TBMM in June
According to a report by Erdoğan Süzer from Sözcü newspaper, Treasury and Finance Minister Mehmet Şimşek has accelerated tax reform efforts. The tax reform draft that has been reached includes regulations that will require homeowners and those who use homes as investment vehicles to pay more taxes. According to the draft, which is expected to be submitted to the Turkish Grand National Assembly in the first week of June, while no tax is collected on the sale of houses held for five years under the current regulation, this exception is planned to be removed with the new regulation. No matter how much time has passed since the purchased house, tax will be collected on the capital gains on the day it is sold.
Sales Price Will Be Taken as Basis
The draft regulation states that the current market value application received from the municipality in house purchases and sales will be removed and tax will be calculated based on the current market value. Current market values will be determined with expert reports. While this change will impose a heavy tax burden on those selling houses, it may also lead to an increase in the 2 percent title deed fee paid by the buyer and seller. It was also noted that a reduction in the title deed fee is being discussed in order to prevent informality.
Multiplied Tax May Be Collected from Those with More Than One House
The draft regulation plans to collect higher rates of real estate tax on the 2nd, 3rd and other houses of those with more than one house. For example, if a person with 2 houses pays 5 thousand TL tax for the first house, they may have to pay 7 thousand 500 TL or 10 thousand TL for the second house. The amount of title deed fees may also increase exponentially for those with more than one house.
