A new amendment in May 2020 has exempted international investors from paying VAT on their Turkish property assets. The concession is one of many measures taken by the Turkish government to make property investment in Turkey more appealing. Foreigners who are not Turkish citizens and companies that have not made any money in Turkey and do not have a Turkish office or commercial operation constitutes the groups who are free from VAT liability.
If new Turkish real estate properties are acquired from construction enterprises or the total cost is paid in foreign currency, VAT exemption will take place. We need to note that if the buyer sells the property during its first year, the exempt VAT must be paid.
To qualify for VAT exemption, you need to present a notarized copy of your current passport and a document issued by the Turkish tax office stating that the buyer is not resident in Turkey. The latter requires notarized passport translation, notarized proof of foreign address, passport transactions from the Turkish Police Department, letter from the General Directorate of Immigration office that shows the applicant is not resident in Turkey.
VAT exemption (when buying property)
A new amendment in May 2020 has exempted international investors from paying VAT on their Turkish property assets. The concession is one of many measures taken by the Turkish government to make property investment in Turkey more appealing. Foreigners who are not Turkish citizens and companies that have not made any money in Turkey and do not have a Turkish office or commercial operation constitutes the groups who are free from VAT liability.
If new Turkish real estate properties are acquired from construction enterprises or the total cost is paid in foreign currency, VAT exemption will take place. We need to note that if the buyer sells the property during its first year, the exempt VAT must be paid.
To qualify for VAT exemption, you need to present a notarized copy of your current passport and a document issued by the Turkish tax office stating that the buyer is not resident in Turkey. The latter requires notarized passport translation, notarized proof of foreign address, passport transactions from the Turkish Police Department, letter from the General Directorate of Immigration office that shows the applicant is not resident in Turkey.