The problems and solutions proposed in the taxation of real estate in Turkey

Real estate is considered as the most preferred and important economic resource and investment tool needed in every period of world economies. Rise and falls of real estate industries at individual country level reflects status of the relevant countries. Buoyant real estate industry constitutes key point of general economy and commercial cycling in the country. It is seen that real estate industry plays significant role in numbers of economy areas starting from construction industry which shapes real estate industry, to row material provider industries for real estate, and to banking industry which undertakes marketing, funding and management functions for real estate industry. Accordingly, Turkish Code of Taxation includes regulations on real estate properties within tax scope. As much as the proportional significance of real estate industry in Turkish economy, their taxation is important. Taxation process of properties is initiated by the relevant operations applied across the real estate industry. These operations are basically rental and sales of properties. Taxation processes in the real estate industry differ in line with these two different operations. There are number of issues encountered in the taxation processes in Turkey. Value assessment stage is considered as the starting point of these issues. Yet, meeting certain values of properties in Turkey is controversial subject as well as unbiased assessment of value accurately. Prominent issues in taxation of real estate are abundant literature on real estate, lack of some key points regarding valuation of real estate, lack of communication among administrations authorized on real estate, in sufficient competency of individuals employed in the real estate value assessment field and their inappropriate posture in terms of expert and surveyor. The starting point of the solution to these problems is the regulations that must be made in the legislation covering the taxation of real estates. KEYWORDS: Real Estate, Taxation of Real Estate, Real Estate Tax Problems, Solution Suggestions, Turkey.