Making a property investment in a foreign country generally entails a slew of additional costs and taxes. Known as Katma Deger Vergisi in Turkey, VAT can be a significant expense when buying real estate but good news for foreigners looking forward to making property investment in Turkey is the VAT exemption.
To boost the real estate market and to make buying property in Turkey more attractive for foreign nationals, the government has made changes to taxation laws and procedures. In 2017, a concession was made to exempt foreign buyers from paying VAT. Before the enactment of the VAT exemption law, foreign investor used to pay VAT when purchasing a commercial or residential property at rates ranging from 1-18%. The VAT exemption is especially attractive for investors who buy commercial properties in Turkey on which 18% value added tax is applied.
You’re eligible for VAT exemption if you qualify as a:
You’re not eligible for VAT exemption if you’re a Turkish citizen residing in a foreign country and work for a Turkish institution.
VAT rates in Turkey vary from 1% to 18% depending on the type of property and also the location of the project you’re investing in.
At Property Hub, VAT exemption is one of the legal services we offer our clients. To start the process, get in touch with our team.
For Further Information Contact Us.