The Revenue Administration (GİB) issued a new circular (2025/1) on May 16, 2025, for those who reported low prices in land registry sales. This circular clarified which penalties would be applied in cases of declarations made “with remorse.”
Property Sales Under Surveillance
Property sales during the 2024-2025 period are being closely monitored by the GİB. If the sale price is reported as low in the purchase or sale of a home, land, or commercial property, warning letters are being sent to citizens.
These letters state that the actual price has been concealed based on online listings, similar sales, and appraisal reports, and citizens are urged to declare a higher price.
This Is Not an Invitation to Explanation!
The letters received are not the classic “invitation to explanation” but a direct call to “make a declaration.” In other words, you are expected to make the correction voluntarily. However, many people were wondering, “Will there be a penalty if I make a declaration out of remorse?” The GİB has resolved this uncertainty with a new circular.
What Will Happen According to the New Circular?
If a declaration is made out of remorse:
Only the difference in the missing fee and
a monthly 4.5% remorse surcharge will be paid.
No penalties (tax evasion or procedural violations) will be imposed.
If repentance is not used (i.e., only a written response is provided):
The difference in the missing fee,
25% of the tax evasion penalty,
and a monthly 4.5% late payment interest rate will be paid.
Furthermore, the circular clearly states that these corrections made through repentance are not considered the same as declarations and therefore no penalty for irregularity can be imposed.
What should you do?
If you declared an insufficient amount in the title deed sale, you have two options:
Declare with remorse:
→ Tax difference + 4.5% remorse surcharge (no penalty)
Respond to the letter you receive:
→ Tax difference + 1/4 of the tax evasion penalty + 4.5% late payment interest
In either case, you must apply to the tax office (or through the Digital Tax Office) within 15 days. Otherwise, you may face larger penalties and interest charges.
