2M Law Firm | Urban Transformation (Law No. 6306) Law | Tuzla / Istanbul

Many property owners who demolish their risky buildings and rebuild them encounter the same question when they open the assessment notice from the municipality: “Since I am in urban transformation, the state exempts me from fees; where did this parking fee come from?” Sometimes, the contractor tries to pass this cost onto the property owners by saying, “you will pay the parking fee”; sometimes the municipality issues thousands, or even hundreds of thousands of liras in fees without applying the exemption at all. In this article, we explain whether the parking fee in urban transformation is covered by the exemption, the limits of the exemption, how the fee is calculated, and to whom this burden legally belongs, in light of current legislation and Council of State jurisprudence.

Short Answer

Yes — in urban transformation, the parking fee is generally exempt; however, this exemption is not unlimited. The exemption is limited to the new construction area up to **one and a half (1.5) times** the existing construction area of the demolished structure. A fee may arise for the portion exceeding this limit, and this item should often belong to the **contractor**.

Below, we explain the legal basis of this answer step by step.

What is the “Parking Fee”?

In Turkey, according to the Parking Regulation, every new building is obliged to provide a certain number of parking spaces based on its size and intended use. If the building cannot meet this need internally (e.g., basement, open area, enclosed floor, etc.), the municipality imposes a financial obligation called **“parking fee” for each missing parking space. This collected money is deposited into the municipality’s parking account and used for the construction of collective/public parking facilities in the region.

On Which Article is the Parking Fee Exemption in Urban Transformation Based?

There are two main sources for the exemption:

1. Law Art. 7/9 and Art. 7/10 — General Exemption

Law No. 6306 on the Transformation of Areas Under Disaster Risk has introduced a comprehensive tax, levy, and fee exemption to encourage urban transformation. Article 7, Paragraph 10 of the Law (as amended by Law No. 7153) stipulated that in risky areas, reserve building areas, and parcels containing risky structures, when natural persons and private legal entities are involved in the implementation, no levies and fees would be collected by municipalities for new construction areas up to one and a half times the existing construction area, regardless of functional change.

The concept of “fee” here is critical; because parking fees are not a levy, but a financial obligation in the nature of a fee, and are considered to fall within the scope of this general expression.

2. Implementation Regulation Art. 16/12 — List of Items Not to Be Collected

Article 16, Paragraph 12 of the Regulation enumerates the items that should not be collected within the scope of Article 7/9 and 7/10 of the Law:

Parking Fee Is Not Mentioned By Name In The List — So Where Does The Exemption Come From?

This is precisely where municipalities most frequently object: In none of the clauses (a)–(f) above is the phrase “parking fee” explicitly written. Some municipalities, relying on this omission, make the defense that “the parking fee is not listed in the exemption list, therefore it is not exempt”.

This defense is legally weak. The basis for the parking fee exemption is the second half of sub-paragraph (f): “…any kind of fee determined by municipal council decision and collected in relation to the structure identified as risky and the new structure to be built in its place.”

The parking fee fits precisely this definition. Because the principles for the accrual and collection of parking fees are determined by the relevant administrations, taking into account the provisions of the Regulation — in Istanbul, this authority rests with the Metropolitan Municipality Council. Since the fee is determined by a municipal council decision (group/rate) and is collected in relation to the new structure to be built in place of the risky structure, it falls within the scope of “any kind of fee in sub-paragraph (f)”.

The Council of State Accepts This Interpretation

The judiciary has effectively accepted that the parking fee is covered by the exemption for risky structures. In the decision of the 6th Chamber of the Council of State dated 21.12.2023, it was emphasized that for structures to be demolished and rebuilt within the scope of risky structure identification, only the differences calculated for changes in purpose of use and increases in building area can be collected, in addition to fees and charges previously collected for the existing area, and that the parking fee should also be evaluated within this framework. The decision text also stated that the phrase “collected” cannot be interpreted narrowly as “actually paid”; and that whether or not the fee was actually collected by the municipality for the old structure with a building permit and occupancy license, a difference can only be collected for increases in area and changes in purpose of use.

Important citation note: The following Council of State principal/decision numbers have been taken from file materials and case law searches. Before using them in an objection or lawsuit petition, they must be confirmed from the official/consolidated text of the Council of State. Even in a publication/blog text, an incorrect number can lead to a loss of reputation.

Critical Limit: “1.5 Times” Rule

The exemption is not absolute. Law article 7/10 limits the exemption to a new construction area up to 1.5 times the existing construction area. Practical meaning: If the construction area of the new building is up to 1.5 times that of the old building → municipal fees and charges, including parking fees, are not collected. For the portion exceeding this limit → a parking fee corresponding to the exceeding construction area may arise and be collected. Since this excess area generally serves the contractor’s purpose of gaining salable apartments/floors, charging this item to the contractor is the correct approach in terms of contract structuring. Furthermore, if the new structure consists of residences and workplaces, the exempt construction area is applied within the framework of the square meter ratios of the residences and workplaces within the newly constructed building — meaning a change in function can affect the exemption calculation.

How is the Parking Fee Calculated? (Legal Formula)

In Article 12 of the Parking Regulation (with the amendment dated 16.06.2022), the unit parking fee is calculated with the following formula:

Unit Parking Fee = (A + B) × 20 × Y

Components of the formula:

A — Land share: The value obtained by dividing the annually re-determined value of plots designated as regional/general parking lots, in accordance with the Property Tax Law, by the floor area specified in the plan. It varies according to location and fair market value; in areas with high fair market value such as Küçükçekmece, Maltepe, and Kartal, this item can reach significant amounts.

B — Construction share: The unit price for parking lots, as stated in the Construction Approximate Unit Costs Communiqué published by the Ministry of Environment, Urbanization, and Climate Change for the year in which the construction permit was issued. Multi-story/covered parking lots are among the Class III Group A structures.

20: Minimum unit parking area (m²) for passenger cars, including maneuvering space.

Y: The rate to be applied according to the settlement area group determined by the Municipal/Metropolitan Council decision. Relevant administrations are authorized to reduce the number of groups and increase the rates for the calculation of the fee by taking a council decision.

Rough estimate (2026): In the 2026 Communiqué, the unit cost for Class III Group A structures is approximately 19,800 TL/m². For a single missing parking spot, the construction share component can roughly reach the order of 19,800 × 20 ≈ 396,000 TL; the land share (A × 20) is added, and it is multiplied by the Y rate. When there are two or three missing spots, the cost can quickly escalate to millions. Therefore, the correct application of the exemption creates a very significant financial difference for the owner.

Acquired Rights and Prohibition of Duplicate Payment

If a parking fee has been paid for the old structure previously, only the increase amount should be considered for the new structure. Here, a binding presumption comes into play for municipalities: As per Article 37 of the Zoning Law, an occupancy permit cannot be granted for a structure without a parking space being allocated or its fee being paid; therefore, if the old structure has an occupancy permit (iskân), it must be assumed that the parking fee has actually been paid. Consequently: If the old structure has an occupancy permit → the fee is considered paid → only the difference for the increase in area can be charged for the new structure. If payment has been made due to previous permits → this amount must be offset or refunded; otherwise, it leads to duplicate payment.

The Administration’s Obligation to Investigate

Before accruing a parking fee, the municipality is obliged to conduct a detailed archive search regarding the property’s history. The administration cannot proceed with a transaction without concretely demonstrating whether a fee was previously collected, whether there was a change in the purpose of use, or an increase in area. Unjustly imposing debt based on retroactive commission decisions or abstract undertakings is unlawful. These deficiencies constitute a strong ground for annulment in a potential annulment lawsuit.

What to Do If the Municipality Does Not Apply the Exemption?

In practice, some municipalities may not automatically apply the exemption and may accrue the fee. In this case, the course of action is:

Written objection: An objection is filed with the administration in due time with the risky structure document and the exemption letter. The exemption letter is issued by the relevant municipality’s urban transformation unit or the Provincial Directorate of Environment, Urbanization and Climate Change.

Exhaustion of administrative remedies: For the refund of taxes, duties, and fees collected despite being exempt under Article 16/12 of the Regulation, there is an administrative objection process that must be exhausted.

Annulment lawsuit and refund: If the objection is unsuccessful, an annulment lawsuit is filed in administrative court; the refund of the unlawfully collected amount is requested.

Objection to collection procedure: The legislation stipulates that a certain percentage of the parking fee should be collected at the licensing stage, and the remainder after the parking space is allocated. The administration’s practice of demanding the full amount upfront is a separate ground for objection.

04.02.2026 Regulation Amendment — A New Assurance in Exemptions

Urban transformation legislation is constantly changing. The amendment made on 04.02.2026 to the Implementation Regulation of Law No. 6306 resolves a significant ambiguity regarding fee and tax exemptions: Previously, there was uncertainty in applying fee and tax exemptions after the risky building annotation was cancelled; according to the new regulation, after the risky building annotation is cancelled, an annotation will be entered into the declarations section of the property’s land registry indicating that the application under Law No. 6306 continues, and potential ambiguities will be prevented. This amendment is in favor of property owners as it prevents the rejection of exemptions on the grounds of “the annotation has been removed, so there is no longer an exemption.”

So, Who Pays This Cost — The Owner or the Contractor?

This is one of the most frequently debated items in construction contracts in exchange for land shares. The correct risk distribution is as follows:

Cost within the 1.5-fold limit: It is already within the scope of exemption, it does not arise. It cannot be demanded from the owners.

Cost corresponding to the area exceeding 1.5 times: Since this excess area arises from the contractor’s additional construction/sale right, it must be covered by the contractor.

If the municipality does not apply the exemption: The contractor must carry out the objection/cancellation/refund processes at their own expense.

Contract clauses that unconditionally impose the parking fee on the condominium owners are erroneous and against the owners’ interests. It is essential that this clause is reviewed by an expert before the contract is signed.

Sample Clause to be Included in the Contract

ARTICLE […] — Parking Fee and Urban Transformation Exemption

(1) The structure subject to the contract has been identified as a risky structure within the scope of Law No. 6306. The parking fee/charge that may accrue according to the Parking Regulation for the new construction area up to one and a half (1.5) times the construction area of the demolished existing structure is subject to exemption under Law Article 7/9 and the Implementation Regulation Article 16/12 (especially sub-paragraph (f)); it cannot be demanded from the condominium owners, nor can it be offset against their shares.

(2) In the event of a parking fee arising for the additional area exceeding 1.5 times the existing construction area, the entirety of this fee shall be borne by the CONTRACTOR.

(3) For the determination of the exemption limit, the construction areas in the license and architectural project of the demolished structure and the license and project of the new structure shall be taken as a basis. The CONTRACTOR shall provide the necessary documents and applications.

(4) In the event that the Municipality accrues a fee by applying the exemption partially or not at all; the CONTRACTOR shall conduct the objection, annulment lawsuit, and refund processes (including the 5-year refund right) on their own behalf, account, and expense. Financial burden cannot be imposed on the condominium owners during these processes.

(5) The provision of all documents, including the risky building certificate and the exemption letter, is the responsibility of the CONTRACTOR. Homeowners are not responsible for delays and penalties that may arise due to the administration’s failure to apply the exemption.

(This text is for illustrative purposes; it needs to be adapted to the specific case.)

Frequently Asked Questions

Is a parking fee charged in urban transformation? As a rule, it is not charged for areas within the 1.5 times limit; a fee may be charged for the part exceeding this limit.

Why is the parking fee not explicitly stated in the exemption list? In Regulation art.16/12, “parking fee” is not explicitly listed by name; the exemption is based on the phrase “all kinds of fees determined by the municipal council decision” in sub-paragraph (f) and the general exemption of Law art.7/9-10. The Council of State accepts this interpretation.

If the municipality has taken the fee, can I get it back? Yes. After exhausting the administrative appeal process, a refund becomes possible, generally within a 5-year period, through an annulment lawsuit and a request for reimbursement.

Should the contractor pay this fee? The fee for the area exceeding 1.5 times the original should belong to the contractor benefiting from the additional construction right. The contract should be arranged accordingly.

A parking fee was paid for my old building, will I have to pay again? No. If the old building has an occupancy permit, the fee is considered paid; only the difference for the increased area may be charged, duplicate payment cannot be made.

Why is Expert Lawyer Support Necessary?

In urban transformation, although the parking fee might appear as a single item at first glance, behind it lies a complex, multi-layered picture intertwined with legislation, Council of State jurisprudence, municipal council decisions, architectural project area calculations, and contract law. Accepting every fee demanded by the contractor or municipality without question, under the perception that “the state already covers it,” can result in hundreds of thousands of liras in losses for property owners in the long run. Expert legal support in this area is crucial at these points:

Accurate calculation of the exemption limit: Technical comparison of the construction areas, intended use, and the 1.5-times limit of old and new structures based on architectural projects; managing the on-site inspection and expert witness process when necessary.

Establishing the correct chain of legal grounds: Basing the parking fee exemption on sub-paragraph (f) + Law article 7/9 + jurisprudence, in a way that preemptively addresses the municipality’s objection of “not on the list.”

Confirmation of jurisprudence and article numbers: Verifying every Council of State principal/decision number included in the petition from the official text — incorrect citation damages the case’s credibility and strength.

Proper allocation of risk in the contract: Ensuring that the parking fee, delay penalties, and exemption liability in a construction contract in return for land share remain with the contractor, not the property owners.

Timely execution of objection, annulment, and refund processes: Properly exhausting administrative remedies, not missing lawsuit deadlines, and recovering unfairly collected fees.

Monitoring current legislation: Reflecting continuously updated regulations, such as the 04.02.2026 regulation amendment, in the specific case file.

In an area where a single misinterpreted sentence can cost owners millions of liras, taking the right legal step at the beginning of the process prevents lawsuits that would otherwise last for years.

2M Law Firm

2M Law Firm (Atty. Meryem Günay) provides services in the Istanbul and Kocaeli regions, based in Tuzla, specializing in urban transformation (Law No. 6306), risky building processes, construction contracts in return for land share, condominium ownership, and real estate disputes. You can contact our office for matters such as the accrual of parking fees related to your risky building, expense clauses in your contractor agreement, or objection/refund processes to be carried out against the municipality.