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The real estate tax appraisal commission decisions to be issued in 2025 will affect not only the real estate tax but also title deed fees, inheritance and transfer tax, valuable housing tax, income and corporate tax, and VAT. The time limit for filing an action and the protection of your rights are therefore of great importance. If you miss this process, you may face heavy tax and fee burdens for the next 4 years. For more detailed information and a step-by-step guide, you can read the full article on our website.
In Türkiye, the fundamental criterion for the taxation of immovable property is the values on which the real estate tax is based. These values are determined by appraisal commissions, and such determinations are not limited to the real estate tax but directly affect many types of tax.
The debate that has recently attracted wide public attention, and which has also been brought to the fore by decisions of the Constitutional Court and the Council of State, concerns the finalisation of excessively high values where no action is brought against appraisal commission decisions within the time limit, and the reflection of this in different tax liabilities.
In this article, we will address the legal nature of appraisal commission decisions, the necessity of filing an action, the effects of these decisions on different taxes, and the consequences that may arise for taxpayers.
Legal Nature of Appraisal Commission Decisions
Real estate tax values are determined by appraisal commissions within the framework of the Real Estate Tax Law No. 1319.
Commission decisions are administrative acts and are binding on taxpayers.
For these decisions to become final, they must be open to judicial review.
However, the case law of the Council of State and the Constitutional Court shows that these decisions are independent administrative acts and become final if they are not challenged by way of an action within 30 days.
Consequently, taxpayers are obliged to file an action within 30 days from the announcement of the appraisal commission decision itself, and not only at the stage of tax assessment. Otherwise, it cannot be argued that this value is too high against a tax assessment made at a later stage.
Decisions of the Constitutional Court and the Council of State
The Constitutional Court has stated that real estate tax values are binding not only for the relevant year but also for subsequent years. This binding effect is not limited to the real estate tax but extends to other types of tax as well.
The case law of the Council of State likewise accepts that, if no action is brought against appraisal commission decisions within the time limit, these decisions become final and the taxpayer can no longer object to these values afterwards.
This makes filing an action at an early stage a strategic necessity for taxpayers.
Effects on Taxes
Appraisal commission decisions affect not only the base of the real estate tax but also many other taxes, directly or indirectly:
1. Real Estate Tax
- It is directly based on these values.
- Excessively high values rise every year and thus create a continuously high tax burden for the taxpayer.
2. Title Deed Fee
- In sales of real estate, the price declared at the land registry cannot be lower than the real estate tax value.
- For this reason, high appraisal values increase the title deed fee payable at the time of sale.
3. Income Tax and Corporate Tax
- In determining gains on sales of real estate, the difference between the purchase price and the sale price is taken as the basis.
- Since the sale price cannot be declared lower, high values may increase the tax payable on corporate profit or on capital gains.
4. Value Added Tax (VAT)
- In deliveries of residential and commercial premises, the sale price must not be lower than the real estate tax value.
- This leads to an increase in the VAT base.
5. Valuable Housing Tax
- Real estate above a certain threshold is subject to this tax.
- High appraisal values may cause a property to fall within the scope of the valuable housing tax.
6. Inheritance and Transfer Tax
- For real estate passing by inheritance or gift, the tax base is the real estate tax value.
- Excessively high values lead to more tax being paid.
Time Limit for Filing an Action and the 30-Day Preclusive Period
The unit values of land and plots on which the real estate tax is based are determined by appraisal commissions, and these decisions are notified to the relevant muhtar's offices (neighbourhood headmen's offices). Under the legislation, an action may be filed before the tax courts against these decisions within 30 days from the date of learning of them.
In practice, however, the fact that muhtar's offices do not notify taxpayers individually of the values in question can give rise to debate over when the date of learning begins. Taxpayers should therefore act carefully in order to avoid any loss of rights.
Since the procedures for notifying the appraisal decisions to the muhtar's offices were completed by 30 June 2025, it is recommended that an action be filed within 30 days from that date (by the evening of 30 July 2025). However, since this period coincides with the judicial recess, it is also possible to file actions within 7 days from the end of the judicial recess. Accordingly, since the period falls on Sunday, 7 September 2025, an action can be filed at the latest on Monday, 8 September 2025.
Although there have been differing decisions of the Regional Administrative Courts on this matter, the inconsistency was resolved by Decision No. E:2022/14, K:2023/2 of the Plenary Session of the Tax Chambers of the Council of State dated 15.02.2023. According to that decision, taxpayers must file an action against appraisal commission decisions determining the minimum square-metre unit values of land and plots on which the real estate tax is based within 30 days from the date of learning, and at the latest by the last day of the year in which the decision was taken.
That said, to avoid disputes that may arise in practice, our recommendation to taxpayers is to file their actions within 7 days following the end of the judicial recess (at the latest on 8 September 2025), so that no dispute arises over the date of learning of the appraisal commission decisions.
Risks if No Action Is Filed
If no action is filed against the appraisal commission decisions within the time limit:
- The high values become final.
- Real estate tax assessments made in subsequent years cannot be challenged.
- Higher payments are faced in items such as the title deed fee, income tax, corporate tax and VAT.
- From a strategic standpoint, the years in which no action is filed are lost irreversibly.
Conclusion and Assessment
- Real estate tax appraisal commission decisions are critical decisions that directly affect not only the real estate tax but many types of tax.
- The 30-day time limit for filing an action must be followed strictly, and one should act quickly from the date of announcement and notification.
- It should not be forgotten that additional burdens may arise not only in the real estate tax but in many tax items such as the title deed fee, valuable housing tax, income and corporate tax, VAT and inheritance and transfer tax.
- To avoid any loss of rights, it is of great importance for taxpayers to monitor the process closely with expert support.
Yusuf Şimşek, Attorney at Law
