Turkey’s gearing up to tax the wealthy and their luxury homes

Turkey may raise the top tax rate for high-income individuals and introduce a new tax on luxury homes — but not until October at the earliest

TRD NATIONAL /
Jul.July 07, 2019 01:00 PM
Luxury villas along the Bosphorus Strait in Turkey (Credit: iStock)

Luxury villas along the Bosphorus Strait in Turkey (Credit: iStock)

High-earners and those looking to purchase luxury homes in Turkey have gotten a brief respite before new taxes are slated to go into effect.

The country’s Treasury and Finance ministry prepared the tax measures and other proposals to contain the government’s growing budget deficit, which leapt 225 percent in the January-May period. But the proposed tax hikes in Turkey for high-income individuals and a new tax on luxury homes would not take effect until October, two sources familiar with the matter told Reuters.

Under the new measures, Turkey’s income tax rate would jump from 35 percent for those with annual income of one million lira (roughly $175,000) to 50 percent. It was not clear what the new tax would be on luxury property.

Reuters reported last week that the Treasury and Finance ministry drew up the measures, but they will not become effective immediately due to a recess expected to start July 15.

“Luxury housing and income tax items are postponed to October,” one source said. Another source told the outlet that taxes on luxury homes and high income have been excluded from the parliament’s pre-recess agenda.

In New York City, the residential market saw a flurry of transactions leading up to the implementation of new progressive taxes on residential real estate. [Reuters] – Mike Seemuth


Related Articles

arrow_forward_ios
Equity Group president Sam Zell (Credit: Getty Images, iStock, Equity Apartments)

Equity Residential decries rent control’s “chilling effect” on development

Equity Residential decries rent control’s “chilling effect” on development
There are warning signs that the U.S. economy is closer to a slowdown. What does that mean for real estate? (Credit: iStock)

The economy may be starting to slow. Real estate is taking notice

The economy may be starting to slow. Real estate is taking notice
Tuscany, Italy (Credit: iStock)

Benvenuto! Why the number of high-net-worth individuals applying for Italian residency may spike

Benvenuto! Why the number of high-net-worth individuals applying for Italian residency may spike
FHFA director Mark Calabria is ready to set Fannie and Freddie free, while Wall Street worries about potential risks.

Wall Street warns against privatizing Fannie and Freddie without Congress guarantee

Wall Street warns against privatizing Fannie and Freddie without Congress guarantee
FHFA director Mark Calabria (Credit: Federal Housing Finance Agency and iStock)

Trump’s move to take Fannie and Freddie private could mean higher mortgage costs

Trump’s move to take Fannie and Freddie private could mean higher mortgage costs
President Donald Trump (Credit: Getty Images)

Mortgage guarantors Fannie Mae and Freddie Mac to return to private control

Mortgage guarantors Fannie Mae and Freddie Mac to return to private control
Corelogic’s chief counsel is leaving the company as it deals with a DOJ inquiry

Corelogic’s chief counsel is leaving the company as it deals with a DOJ inquiry

Corelogic’s chief counsel is leaving the company as it deals with a DOJ inquiry
US President Donald Trump and Chinese President Xi Jinping (Credit: Getty Images and iStock)

Real estate seen as “safe haven” amid trade war uncertainty

Real estate seen as “safe haven” amid trade war uncertainty
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...