Turkey introduced the Valuable Housing Tax (the “VHT”) under the law numbered 7194 which was published on the Official Gazette No. 30971 dated December 7, 2019 and made crucial amendments to the Real Estate Tax Law No. 1316. The Law numbered 7221 (the “Law”) which was published on the Official Gazette dated 20 February, 2020 involves substantive amendments to the implementation and scope of the VHT.
Fundamental changes in the VHT legislation are summarised below:
The Law invalidates the valuations determined by the General Directorate of Land Registry and Cadastre and regulates that the basis of VHT assessment will be the real estate tax value of each house.
The Law introduces new exemptions with respect to the VHT obligation as listed below:
*Those who own only one valuable house (regardless from their incomes) will be exempt from the VHT.
*Those who own more than one valuable house will be exempt from the VHT with respect to their least valuable house.
*Houses owned by the Housing Development Administration of Turkey will be exempt from the VHT
The Law amends VHT rates as provided in the table below:
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