Tax exemption on real estate in Turkey

Tax exemption on real estate in Turkey

To support and encourage foreign investments, the Turkish government has provided many privileges to foreigners, including tax exemption on real estate in Turkey. And this is what we will talk about in this article from Ebla Real Estate.

The most important real estate taxes in Turkey:

Purchasing Tax (Title Deed Fee):

When buying a house in Turkey, the buyer gets a title deed, “Tapu” in Turkish, which comes with a fee of four percent of the price of the property. This amount is usually divided into two and paid by the buyer and the seller. However, depending on the agreement between the two sides, the buyer or seller might be required to pay the whole fee.

VAT (Value Added Tax):

All commercial, industrial, and professional transactions in Turkey are subject to VAT under Turkish legislation. It is paid once upon purchase. Its percentage ranges between 1% and 8%, and sometimes reaches 18%, depending on the location, area, and some other considerations.

Tax exemption on real estate in Turkey:

The tax exemption on real estate in Turkey includes value-added tax when buying a property, which is 18% for commercial properties (shops – offices) and between 1 – 8 – 18% for residential properties. However, it does not include property transfer costs, annual taxes, service fees, and monthly subscriptions.

It is worth noting that the tax exemption includes only the new properties in Turkey, such as apartments, villas, offices, while lands are not included in this law.

Who includes the tax exemption on real estate in Turkey?

• Foreigners who do not reside in Turkey.
• Foreign companies that are not headquartered in Turkey.
• Those who own one dwelling, and the area of ​​which does not exceed 200 square meters.
• A group of society such as orphans, widows, disabled and relatives of the martyrs.

Conditions of tax exemption on real estate in Turkey:

• Residence outside Turkey, and not to have any residence permit in Turkey for more than six months.
• Owning only one property.
• Committing to not selling the property for one year after the exemption is issued.
• Proving that the amount of the property was paid from outside Turkey.
• Not to have a registered address in Turkey.

Documents Required for Tax Exemption in Turkey:

A list of documents must be prepared when applying to the authority of tax exemption in Turkey:

1. A copy of the passport
2. Contract of sale
3. Tax number
4. Power of attorney for whom the lawyer represents

After the tax exemption in Turkey is issued, you must go to the Tapu Department in the same municipality of the property to apply for tax exemption in Turkey, by submitting a file of the following documents:

• A document from the bank proving that the property amount was transferred from abroad in dollars or euros.
• Proof of the foreigner’s residence outside Turkey.
• Proof of the foreigner’s residence permit in a country other than Turkey.

Thus, we talked about the tax exemption in Turkey. To buy a property in Turkey and get a tax exemption, do not hesitate to contact Ebla Real estate.

Edited by: Ebla Group Real Estate

If you like the topic, do not forget to share it with your friends