I. Scope of the Tax and the 2026 Threshold
The subject of the Valuable Housing Tax (VHT) comprises residential properties located within the borders of Türkiye whose building tax value exceeds the statutory threshold. For 2026, the threshold for the Valuable Housing Tax has been set at TRY 17,711,000 and is applied in determining whether a property falls within the scope of the tax.
Residential properties with a building tax value below this amount are not subject to VHT, whereas properties exceeding the threshold give rise to declaration and payment obligations.
An important point in this context is that the unit of assessment is not the building as a whole, but each individual independent section (condominium unit) based on its own square meter unit. Apartments within the same project or building are evaluated separately for tax purposes. Accordingly, the building tax value of each independent unit/residence is compared individually with the threshold.
II. Determination of Tax Liability and Responsibility Structure
The taxpayer of the Valuable Housing Tax is the owner of the property, the holder of a usufruct right (if any), or, in their absence, the person who disposes of the property as if they were the owner.
In cases of co-ownership (shared ownership), each co-owner is liable in proportion to their share. In joint ownership (ownership in common), the owners are jointly and severally liable for the tax debt. In determining whether the tax applies, the total value of the property is taken as the basis; however, the calculated tax is apportioned according to ownership shares. This structure requires careful legal and financial analysis, particularly in cases of family ownership and properties acquired through inheritance.
In determining whether a property qualifies as a residence, not only the land registry record but also the actual use of the property is taken into consideration. Therefore, for properties registered as residential in the title deed but used de facto for commercial purposes, the factual situation will be decisive. However, such factual use must be demonstrable through proper documentation.
III. Commencement of Tax Liability
The Valuable Housing Tax arises as of the beginning of the calendar year following the year in which the threshold is exceeded. Where the building tax value surpasses the threshold, where changes leading to a value increase occur, or where an existing exemption ceases to apply, the tax liability begins at the start of the following year.
For properties acquired during the year that exceed the threshold value, the tax obligation arises as of the beginning of the year following the acquisition year. In this respect, the date of acquisition is significant for tax timing purposes.
IV. Exemption Provisions
The law provides certain exemptions from this tax. The principal exemptions include:
- Residential properties owned by public institutions and organizations;
- The sole residence owned by a natural person in Türkiye;
- In cases where a person owns multiple residences, the single residence with the lowest value among those subject to tax;
- Newly constructed residences held by enterprises whose principal business activity is construction, provided they have not yet been sold and statutory conditions are met;
- Properties owned by foreign states, subject to reciprocity.
Taxpayers owning multiple residences must notify the administration within the prescribed period regarding the property for which they intend to benefit from the exemption. Failure to comply with the notification requirement may result in the loss of the exemption and potential penalties.
V. Tax Base and 2026 Tariff
The tax base is the portion of the building tax value exceeding TRY 17,711,000. A progressive tariff applies for 2026:
- Between TRY 17,711,000 and TRY 26,567,000: 0.3% (‰3) on the excess amount;
- Between TRY 26,567,000 and TRY 35,425,000: fixed amount plus 0.6% (‰6);
- Above TRY 35,425,000: fixed amount plus 1% (‰10).
The progressive structure may significantly increase the tax burden, particularly for high-end residential properties. Therefore, the annual monitoring of building tax values is of strategic importance.
VI. Declaration and Payment Process
The tax return must be submitted annually by the end of 20 February. The tax may be paid in two equal installments in February and August.
The tax return must be accompanied by a municipal letter indicating the building tax value for the relevant year and the preceding year. Although electronic filing is possible, submission of the document evidencing the building tax value remains mandatory. Incorrect or incomplete declarations may result in tax loss penalties and default interest.
VII. Special Situations
1. Properties De Facto Used as Workplaces
Properties registered as residential in the land registry but used in practice as workplaces, holding a workplace license and for which relevant tax notifications have been made accordingly, may fall outside the scope of the VHT. However, the factual situation must be substantiated by administrative and legal documentation.
2. Deductibility as Expense
For income and corporate taxpayers, the Valuable Housing Tax paid may be treated as a deductible expense in the determination of commercial income. This is a significant consideration in financial planning, particularly for enterprises holding a commercial real estate portfolio.
Conclusion and Evaluation
Although the threshold amount has been increased for 2026, the effect of revaluation rates increases the likelihood that high-value residential properties—particularly in metropolitan areas—will fall within the scope of the tax.
In this framework, the following will be determinative in practice:
- Regular monitoring of building tax values;
- Proper structuring of exemption rights;
- Analysis of the tax implications of joint ownership structures;
- Ensuring consistency between the title deed classification and actual use;
- Planning the tax timing of acquisition and transfer transactions.
The Valuable Housing Tax should not be regarded merely as a declaration obligation, but as a regulatory area that directly affects the legal and financial structuring of real estate assets. A properly designed tax compliance strategy will help prevent future administrative sanctions and unforeseen financial burdens.