Real estate tax began to burn pocket in some cities, or rather in some parts of the cities. This tax is calculated considering two separate values.
These are the land prices per square meter of land determined every 4 years. When this value was re-established in 2014, it was moved to the courts for increases of 300 percent in many cities and towns. Lastly, the values that will be valid between the years of 2018-2022 were published in July.
We do not yet know what these amounts are because the Finance and Revenue Administration has not yet disclosed these amounts, which are called 'fair value'.
The other thing is the construction cost of the building. The sum of these two figures is the tax value of the building. The Ministry of Finance publishes these costs every year. The figures were released recently.
10.3 PERCENT INCREASE
According to the published figures, the building construction costs increased by 10.3 percent. The cost of a building in a luxurious class in reinforced concrete residential buildings was raised from one thousand 374 liras to one thousand 516 liras and from first class construction from 856 liras to 946 liras. This will reflect about 2 to 5 percent of the real estate tax.
Houses are made of reinforced concrete, carcass, masonry or wood, and the cost per square meter is determined according to the construction class. In the case of housing, the tax rate is one thousandths and in the workplace is two thousandths. It is calculated as two thousandth for housing within the borders of the metropolitan municipalities such as Ankara, Istanbul, Izmir and Bursa, and 4 thousandths for the workplace.