The new era in real estate: the market value for tax purposes is becoming a thing of the past.

Measures have been taken to prevent tax losses. A new era is beginning in real estate, and the market value is becoming a thing of the past. With the new application that will come into effect in 2026, taxation in real estate transactions will be calculated based on the actual value rather than the market value.

BANKS WERE WORKING

The relevant ministries have been working for some time to increase public revenues and ensure tax fairness in the real estate sector. Additionally, global examples regarding the taxation of real estate are being examined.

TECHNICAL INFRASTRUCTURE WILL BE DEVELOPED

According to a report in Türkiye Newspaper, the annual program of the Presidency also emphasized the need for an objective criterion-based real estate valuation system. In this regard, technical infrastructure will be developed to track changes in real estate values and create property value maps.

WILL START IN 2026

This system, which will hold data on the values of properties and ownership information, will be integrated into the Land Registry and Cadastre Information System. After the technical studies are completed, a legal amendment will be made regarding the taxation of real estate transactions based on their actual value. According to the information obtained, the application of taxation based on actual value in real estate transactions will be implemented in 2026.

20 PER MIL FEE IS COLLECTED

In the current application, both the buyer and the seller are obliged to pay a 20 per mil title deed fee separately in real estate transactions. The buyer and seller must declare the actual purchase and sale price, which should not be lower than the real estate's property tax value.

After the purchase or sale transaction made at the title deed, if it is determined that the declared transfer and acquisition amount does not reflect the actual situation, or if it is determined that the declared transfer and acquisition amount reflects the actual situation but the fee was paid on a lower amount than the property tax value, the under-collected fee is requested from the parties with a penalty.

Additionally, according to the Income Tax Law, if real estate is sold within five years from the acquisition date, the income obtained is subject to tax as capital gain. In determining the capital gain, indexed purchase price, expenses such as title deed fees, and the exemption for the relevant year are deducted from the sale price, and income tax is levied on the remaining gain.