Luxury villas along the Bosphorus Strait in Turkey (Credit: iStock)
High-earners and those looking to purchase luxury homes in Turkey have gotten a brief respite before new taxes are slated to go into effect.
The country’s Treasury and Finance ministry prepared the tax measures and other proposals to contain the government’s growing budget deficit, which leapt 225 percent in the January-May period. But the proposed tax hikes in Turkey for high-income individuals and a new tax on luxury homes would not take effect until October, two sources familiar with the matter told Reuters.
Under the new measures, Turkey’s income tax rate would jump from 35 percent for those with annual income of one million lira (roughly $175,000) to 50 percent. It was not clear what the new tax would be on luxury property.
Reuters reported last week that the Treasury and Finance ministry drew up the measures, but they will not become effective immediately due to a recess expected to start July 15.
“Luxury housing and income tax items are postponed to October,” one source said. Another source told the outlet that taxes on luxury homes and high income have been excluded from the parliament’s pre-recess agenda.
In New York City, the residential market saw a flurry of transactions leading up to the implementation of new progressive taxes on residential real estate. [Reuters] – Mike Seemuth