Turkey Tax Draft Seen Raising Home Prices 17%, Vatan Reports

A Turkish draft law to extend a value-added tax on large homes to smaller ones might increase housing prices in the country by 17 percent, Vatan newspaper reported.

The draft foresees extending the tax of as much as 18 percent to homes smaller than 150 square meters (1,615 square feet), the newspaper said, citing unidentified Treasury officials. The Treasury is preparing to send the draft to parliament for approval, Vatan said.

The existing tax was designed as a levy on luxury home purchases and was based on size, while the draft law takes into account the proliferation of luxury-home projects with units below the size threshhold, Vatan said.

The tax would range from 10 percent to 18 percent, depending on a home’s location, the newspaper said.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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