Property tax exemption: Who is eligible?

While 2 million people gained the right to retire last year with the EYT regulation, another 300 thousand people retired by August of this year. This number is expected to increase by the end of the year. In addition to extra income opportunities such as holiday bonuses and pension promotions, those receiving a pension are also granted an exemption from property tax. Thus, hundreds of thousands of people have gained the right to be exempt from property tax.

Those who can benefit from this exemption include retirees who own a single residence not exceeding 200 square meters gross and have no income other than their pension from the Social Security Institution (SGK), as well as housewives, the unemployed, the disabled, veterans, and the relatives of martyrs. Those receiving widow's or orphan's pensions can also benefit from this right. However, retirees whose total income exceeded 150 thousand liras last year cannot benefit from this exemption.

WHEN DOES THE EXEMPTION RIGHT BEGIN?

The right to exemption begins from the year following the year of retirement. For example, individuals who retired in 2022, do not work, and own a single residence not exceeding 200 square meters can benefit from this exemption in 2023. For those who retired in 2023, the exemption will begin in 2025.

HOW IS THE EXEMPTION APPLIED?

Retirees must apply to the municipality where they are registered to receive the exemption. During the application, the 'Form for Retirees, Widows, and Orphans with a Single Residence' must be filled out and submitted.

EXEMPTION FOR SHARED RESIDENCES

For retirees who own a share in a residence not exceeding 200 square meters, the exemption is applied in proportion to their share. However, if a person has a share in another house inherited in addition to their own residence, the exemption is not applied in this case.

THOSE WHO APPLY TO THE MUNICIPALITY CAN GET THEIR PAYMENT BACK

Those who made a payment by mistake despite being exempt from property tax have the right to get these payments back. They can recover these payments by applying to the municipality with documents showing that they meet the conditions within the five-year statute of limitations.

SUMMER HOUSES ARE NOT COVERED BY THE EXEMPTION

Summer houses or highland houses used only during certain periods do not fall within the scope of the property tax exemption. The exemption can only be provided for a single summer residence where the retiree resides continuously throughout the year. If a retiree has one house and one summer house, property tax must be paid for both.

THERE IS AN EXEMPTION, BUT RENTAL TAX IS PAID

Retirees who rent out their single residence can also benefit from the exemption. However, in this case, rental income tax must be paid. Those who rent out their only home and live in another house without paying rent cannot benefit from the exemption right.

TAX STATUS FOR NEWLY PURCHASED HOMES

The property tax for a residence purchased this year is paid by the seller. The buyer does not pay tax in the first year; they only make a declaration to the municipality. Tax payments for those who bought a new home will begin in 2025.

SECOND INSTALLMENT OF PROPERTY TAX IS IN NOVEMBER

Property tax is paid in two equal installments every year. The first installment payments are made in May, and the second installment payments are made in November. In case of a delay in property tax payments, interest is applied to the delayed installments.