Increases In Real Property Taxes Capped

Valuation studies regarding the property tax values forming the basis for the calculation of the real property taxes payable by property owners were completed back in July 2025.¹

The significant increases resulting from these valuation studies led to public expectations that a limitation would be introduced, similar to the situation in 2017.

In response, Law No. 7566 on the Amendment of Tax Laws and Certain Other Laws and Decree Laws ("Omnibus Law")² was published. The Omnibus Law introduced caps on real property tax values, as has been the case in 2017.

Accordingly, the real property tax values of building and land for 2026 may not exceed twice the tax values applicable for 2025.

In addition, where circumstances requiring an adjustment of the tax value arise (such as the construction of a new building, demolition of a building, or a complete change in the type of use, etc.), the calculation of the building and land tax values will be based on the per-square-meter unit values determined for 2026 in 2025. However, for the first year, these values may not exceed twice the unit values applicable for 2025.

The same limitations will also apply to other taxes, fees and financial obligations calculated based on the real property tax value.

Furthermore, tax values will no longer be increased annually at "half of the revaluation rate", but rather at the (full) "revaluation rate". Similarly, in cases where circumstances requiring an adjustment of the tax value arise, the tax values for the subsequent years will also be increased in line with the revaluation rate.

For the years 2027, 2028 and 2029, per-square-meter unit values will continue to be calculated based on the values determined in accordance with the above limitations.

This regulation, which introduces a cap on real property tax values entered into force on 19 December 2025. Accordingly, lawsuits filed before tax courts seeking the annulment of the valuation commissions' decisions regarding the minimum land and plot per-square-meter unit values determined for 2026 in the period prior to the Omnibus Law do not have a subject matter anymore. It is expected that the tax courts will render decisions stating, "there isno need to render a decision" in these cases.

With the Omnibus Law, the legislator did not only introduce limitations on real property tax values, but also adopted measures aimed at ensuring that title deed fees paid in real property sales reflect the actual transaction value.

The title deed fee payable in real property sales will be collected based on the declared sale price, which cannot be lower than the real property tax value; rather than being collected on the real property tax value which could not be lower than the sale price. Moreover, where it is determined that the sale price declared by the parties does not reflect the actual transaction value, a tax loss penalty equal to the full amount of the unpaid title deed fee (instead of the previous rate of 25%) will be imposed on the portion corresponding to the difference.

Footnotes

1. For further details on the legal implications of the increase, you may access our previous announcement here.

2. Published in the Official Gazette dated 19 December 2025 and numbered 33112.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.