Tax exemption for foreigners in Turkey

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   The Turkish government has granted foreign investors a lot of facilities, especially with regard to the property in Turkey, and many concessions are also provided to them, as some restrictions imposed on them were canceled, and the aim of this is to increase the number of investors and motivate them to buy real estate in Turkey and some of these facilities came the tax exemption law In Turkey on real estate, which is exempting the investor who wants to buy a property in Turkey from paying some of the fees for the state, Turkey, and its aim is to enhance the investment movement in Turkey on the one hand and reduce the burden of paying the taxes imposed on them on the other hand. To find out what taxes imposed on real estate in Turkey, we MBANY Real Estate will list them in detail for you, to be known every investor who is about to invest in Turkey. Each continuous and owner of the property on Turkish soil is obligated to pay taxes with specific dates for government agencies concerned with taxes, and Turkey's real estate taxes are divided into two or two types :

Real estate taxes are paid once

  •  Tabu tax or real estate registration tax: the value is 4% of the value of the property registered in a bond that is paid equally by the buyer and the seller and in cases the two parties agree that one of the parties pays it completely or in a certain percentage.
  • VAT in Turkey: Its value is from 1% to 8%, and it may sometimes reach 18% and specify according to the type and area of the property (the net area, not the total area), its location and other factors, and it is paid once when purchasing a property in Turkey.

Real estate taxes are paid annually

  • A real estate tax valued 0.2 % or 2 per thousand of the value of the residential property located in the major cities either in cities outside the major cities is 0.1 % or 1 per thousand. As for the commercial property, its value is 0.4 % or 4 per thousand in the major cities and outside the major cities, which is 0.2 % or 2 per thousand of the value of the commercial property.
  • Insurance fees for earthquakes and natural disasters are paid by the property owner to specialized companies, approved by the Turkish government, and this amount is determined according to specific criteria, such as: the life of the building, its area, and so on.

     What matters to us now is the subject of the article except that it is the tax exemption for foreigners in Turkey, as it includes all foreign investors who are not residing in Turkey, foreign companies that are not based in Turkey, and the non -residing in Turkey and include tax exemption in Turkey, value -added tax when purchasing The real estate, which is 18 % for commercial real estate (commercial stores - offices), and between 1 - 8 - 18 % for residential real estate, and does not include the real estate tax exempting law in Turkey costs of transferring ownership, annual taxes, service fees and monthly subscriptions, where only is limited On the value -added tax.

Real estate covered by exemption in Turkey
     The newly constructed real estate, whether it is residential, such as: apartments, villas, or commercial, such as: offices and workplaces.

Real estate is not included in exemption in Turkey
     Old properties as well as agricultural lands, and other types of land.

Categories who have the right to obtain tax exemption in Turkey
     Foreigners who are not residing in Turkey, foreign legal entities that are not based in Turkey, and the Turks that are not residing in Turkey and there are also groups who have the right to exemption except:

  • Those who own a single residence that does not exceed 200 square meters, and they have no other winter house, or resort, and they have no share in another residence.
  • House of homes, widows, orphans, disabled people, relatives of warriors, martyrs, and retirees provided that they have only one residence, regardless of its area.

Terms of tax exemption in Turkey
     Those wishing to take advantage of the value -added tax exemption must apply to the Turkish tax authorities, after securing the following conditions:

  • The property funds to be purchased must be transferred from outside Turkey, either in US dollars, in the euro, or a customs advertising document in the event of a cash.
  • The real estate buyer must not have previous residence in Turkey for a period of six months.
  • The real estate buyer should highlight a residence bond outside Turkey through a special address for the concerned person officially certified abroad.
  • The buyer must obtain an proof of non -residence in Turkey for a period of 6 months by visiting the Immigration Department.
  • Extracting a paper to detect entry and exit movement to Turkey from the Public Security Directorate.

     Noting that it is not possible to sell the real estate that benefits from the tax exemption again within one year.The presence of a Turkish lawyer when submitting the request for tax exemption -in order to avoid the buyer himself of the consequences of making mistakes,which could lead to the loss of his right from tax exemption.

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