Request from the real estate sector for a discount on title deed fees! Breaking news!

Tax changes that were brought to the agenda at the beginning of 2024 were postponed until after the local elections. So which taxes are on the agenda? What will change in the real estate sector?

Economist columnist Abdullah Tolu wrote about the new tax debates that started after the election in today's column. In his article, Tolu reminded that the Omnibus Law studies regarding the tax changes that came to the agenda at the beginning of 2024 were postponed until after the local elections, with a decision taken.

Abdullah Tolu said that with the completion of the election process, the new tax regulations included in the MTP and expected to be finalized by July are now in order.

Tolu underlined that, in fact, our Minister of Treasury and Finance, Mr. Mehmet Şimşek, has given serious clues about the new regulations to be made in some of the statements he has made so far.

Abdullah Tolu pointed out that there are three main tax-related issues in the Medium Term Program approved by Presidential Decree No. 7597 and listed them as follows:

  • Expanding the tax base and increasing voluntary compliance, and increasing the share of direct taxes in the medium term.
  • By examining tax expenditures; Removal of ineffective exceptions, exemptions and discounts.
  • Fighting informality.

Our Minister of Treasury and Finance, Mr. Mehmet Şimşek, emphasized that there is no increase in the VAT rates currently applied as 1, 10 and 20 percent, but there may be changes in the lists of goods and services subject to 1 percent and 10 percent VAT.
In addition, after Minister Şimşek did not mention the SCT issue, claims that there may be an increase in SCT rates came to the fore on social media.


Columnist Abdullah Tolu underlined that there are serious tax losses in the real estate sector, especially in the second-hand market.

"This situation is completely experienced in the process of buying and selling real estate at what is popularly called the municipal market value. Real estate is subject to buying and selling at the municipal market price, which is very low compared to this price, rather than the actual sales price in the title deed," said Tolu, adding that this situation comes first with the title deed fee. He pointed out that it causes loss of tax, corporate tax, VAT and title deed fees.

Tolu stated that in order to prevent this loss, the real estate industry wants the title deed to be processed based on the actual sales price, but the title deed fee rates to be reduced.

"Finance should not focus on the reduction in the title deed fee here, but should focus on the loss of corporate tax and VAT, especially the income tax arising from these sales. It is extremely important that a sector wants the unfair gains generated in its sector to be taxed. This issue should not be ignored," Tolu said. He also touched upon another issue that was publicly reflected.

Tolu stated that the regulation regarding the collection of property taxes at different rates from those who own more than one residence is also on the agenda and concluded his statement by saying, "In order to prevent tax loss and evasion in residential and workplace rentals, the regulation regarding the conclusion of these contracts via e-government is also envisaged to be enacted."