In 2017, the Turkish government passed a law exempting foreign investors from VAT if the investor owns real estate.
But there is a barrier called "October tax" for foreigners to own real estate. If the area exceeds 150 square meters, taxes are likely to be levied on the value of the property and up to 18% of the net square meter value of the property if the property is licensed for residential and commercial use.
Since the immovables covered by the tax exemption law are residential or commercial immovables, including buildings, residential complexes, licensed commercial units, land and farms, the law does not apply. Dec.
Law No. 6824 provides for all legal provisions related to the real estate investment sector in Turkey.
The construction must be new and tax exemptions generally should not include tax exemptions for properties that have been lived in before, but you should get an exemption if the property is resold and all previous owners must be Turkish.
Paying Turkish currency for the value of assets in order to strengthen the basic pillars of the Turkish economy is required instead of Turkish.
If the tax exemption law is applied, the owner does not have the right to change the property and resell it one year before the purchase, and if this law is violated, the investor will have to pay VAT.
Tax exemption benefits are granted to foreigners who are not permanent residents of Turkey and reside outside the country, or to Turkish citizens residing in foreign countries or institutions who do not have a legal address in Turkey.
As for foreigners residing in Turkey or commercial enterprises residing in Turkey or enterprises with sources of financial support, they "cannot benefit from tax exemption for foreigners".
In addition, real estate covered by the tax exemption law is residential or commercial real estate (apartments and complexes, licensed commercial units), but land and farms are not covered by this law. Dec.
A number of official and supporting documents are required for foreigners to qualify for tax exemption when owning real estate in Turkey. The main ones are:
A translated and certified copy of the investor's passport.
An official letter from the Turkish immigration Office stating that the recipient does not reside in Turkey.
The legal address of the investor in the country of residence.
Transactions related to the passports of investors by the Turkish police.
