In recent years, house prices and rents have unexpectedly increased due to inflation. However, the number of cases regarding the disputes between the parties and adherence to the contracts whose legality is questioned has skyrocketed. There is also a huge tax loss called the informal economy. The e-Government Lease Agreement application can be a solution to all these. So when is it coming?
When is the e-Government Lease Agreement coming?
Turkey surpassed Argentina in 2022, becoming the country with the highest inflation. Therefore, the prices of many things, from the chewing gum sold in the market to the bread in the bakery, rose. This increase was seen more especially in technological devices such as phones and cars, which have a high tax rate.
Even though there is no high tax involved, since the real estate market is in action depending on the dollar rate, house prices and rents have increased, although not as much as technological devices. Of course, under normal conditions, the income of the state in this field should increase in the same way.
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However, millions of landlords in Turkey do not make lease agreements. Although the tenant living in the house can prove that he lives there through the billing addresses, taxes are not paid on the rental income as there is no official contract.
Treasury and Finance Minister Nureddin Nebati announced that they evaluated 900 proposals in cooperation with 291 institutions and organizations and put into effect the Action Plan for Combating Informal Economy covering the period 2023-2025. In this context, 44 different steps will be taken to prevent informality until the end of 2025.
According to this, e-Government Rental Agreement app until the end of 2024 will be made available to citizens. This practice, which forces the landlord and tenant to formalize the contract, will prevent both conflict between the parties and high tax loss.
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