Law No. 7566, published in the Official Gazette on December 19, 2025 and entering into force the same day, introduced wide-ranging changes covering everything from vehicle sales to rental income, title deed transactions, and property tax. Some articles of the law took effect on the publication date, while others entered into force as of January 1, 2026. In this article, we summarize the most notable provisions of the package.
İçindekiler
1. A New Notary Fee on Vehicle Sales
As of January 1, 2026, a proportional notary fee of 0.2% (2 per mille) of the sale price applies to the first registration of new vehicles and to the sale and transfer of used vehicles carried out at a notary. If the calculated amount falls below TRY 1,000, a minimum fee of TRY 1,000 applies instead. For example, the fee on a TRY 1,000,000 vehicle sale is TRY 2,000, while for a TRY 300,000 sale — where 0.2% equals TRY 600 — the TRY 1,000 minimum applies. Sales and transfers to licensed second-hand motor vehicle dealers are exempt from this fee.
2. Penalty for Underreporting Property Value Quadrupled
When the value declared for title deed fee purposes is understated relative to the real value (underreporting), a tax loss penalty of 25% on the shortfall previously applied. Under the new regulation, this rate was raised to 100% (one full multiple). This provision took effect on the law’s publication date, December 19, 2025.
3. Interest Deduction for Rental Income from Mortgaged Housing Removed
The practice of deducting mortgage loan interest from rental income when a mortgage-financed property is rented out has been discontinued. This change directly affects taxpayers who acquired investment property with a mortgage and earn rental income from it.
4. The Fourth Provisional Tax Period Returns
The fourth provisional tax return period, which had previously been eliminated, has been reinstated under the law. This change reorganizes the provisional tax filing calendar for income and corporate taxpayers throughout the year.
5. Annual Fees for Certain Licenses and Permits
Certain licenses and permits — including those for jewelry businesses, second-hand vehicle trading, real estate trading, healthcare and veterinary establishments, precious metals, and aviation — are now subject to an annual fee. Businesses operating in these sectors need to add this recurring annual fee obligation, which varies by license type, to their compliance calendar.
6. A Cap on Property Tax Value Increases
2026 property tax values have been capped at no more than double the 2025 value. This provision is aimed at preventing sudden, disproportionate increases in the property tax base.
7. Other Changes
- Income from the disposal of certain investment funds was brought within the scope of withholding tax.
- Investment monitoring and coordination directorates were granted a VAT exemption on transfers and deliveries of real estate, a fee exemption on real estate acquisition and sale transactions, and a Motor Vehicle Tax exemption on vehicles registered in their name.
- Certain income/corporate tax and VAT exemptions were introduced for UEFA-organized events.
Who Should Pay Attention?
- Individuals and businesses buying or selling vehicles (notary fee),
- Anyone buying or selling real estate and completing title deed transactions (increased penalty),
- Property owners who financed a purchase with a mortgage and rent the property out (loss of interest deduction),
- Businesses operating in licensed sectors such as jewelry, second-hand vehicle dealerships, and real estate trading (annual fees),
- All property owners subject to property tax (value increase cap).
At Mete CPA & Auditing, we support you from assessing how the changes under Law No. 7566 affect your business or personal tax obligations, to planning the necessary compliance steps. Contact us to review your situation.
