Recent Development

The Law No. 7194 on Digital Service Tax and Amendment of Certain Laws and Law Decree No. 375 ("Law"), published on the Official Gazette dated December 7, 2019 and No. 30971, introduced new accommodation tax and valuable house tax.

What Does the Law Say?

1. Accommodation tax

  • Through a new article added to the Expenditure Taxes Law, the Law introduced a new accommodation tax applicable to accommodation services provided by hotels, motels, holiday camps, hostels, apart hotels, guesthouses, camping sites and mountain houses, as well as all other services provided in those accommodation facilities (such as food and beverage, activities, entertainment services, and the use of pools, sports, thermal pools and similar areas).
  • Taxpayers of the accommodation tax are those who deliver the above mentioned services.
  • The accommodation tax rate is 2%. The accommodation tax is declared and paid on a monthly basis. The basis of the accommodation tax is the total value received in consideration for the above services (excluding VAT), in the form of money, goods, or any benefit that can represented in terms of money, or service.  Certain services such as services provided to students in school dormitories are exempt from accommodation tax.
  • The accommodation tax enters into force as of April 1, 2020. However, the accommodation tax rate will be 1% until December 31, 2020.

2. Valuable house tax

  • Through a new article added to the Real Estate Tax Law, households in Turkey whose tax value or value determined by the General Directorate of the Land Registry is more than TRY 5,000,000 are subject to the valuable house tax.
  • The tax base is the greater of the tax value or the value determined by the General Directorate of the Land Registry.
  • The valuable house tax is applied at the following rates:

Household value Rate
Between TRY 5,000,000 and TRY 7,500,000 0.3%
Between TRY 7,500,001 and TRY 10,000,000 0.6%
Exceeding TRY 10,000,001 1%


  • The taxpayer of the valuable house tax is the owner of the household, the holder of any usufruct right on the household, or if neither exists, those who dispose the household as if they are the owner of the household.
  • The valuable house tax is declared annually and paid in two installments by the end of February and August in the relevant year.
  • Certain households determined in the Law are exempt from valuable house taxes, such as households owned by those who own only one household and can demonstrate that they have no income (excluding individuals under 18 and who are dependents) and those whose only source of income is from social security institutions’ monthly payments.
  • The valuable house tax enters into force as of April 1, 2020.
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