What is tax exemption in Turkey, who is eligible, and when?

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As part of the measures taken by the Turkish government to stimulate and increase investment in the real estate sector, a law was issued in February 2017 regarding the exemption of property tax in Turkey. This law stipulates that foreigners and Turkish residents living abroad are eligible for exemption from paying value-added tax (VAT) on property purchases in Turkey for a period exceeding six months.

The tax exemption in Turkey applies to the VAT incurred during property purchases. The VAT rate is 18% for commercial properties (such as shops and offices) and ranges from 1% to 8% for residential properties.

However, the tax exemption does not cover ownership transfer costs, annual taxes, service fees, or monthly subscriptions. It is limited to the value-added tax only.

There are certain conditions for property tax exemption in Turkey:

Absence of previous residence in Turkey for a continuous period of 6 months.

The financial amounts for property purchases must be transferred from outside Turkey through an external bank to an internal Turkish bank or brought in through the airport and registered there.

The required documents for obtaining property tax exemption are:

A bank receipt proving that the financial amounts have been transferred from outside Turkey to one of its domestic banks, or an official document proving that the amount has been brought through a Turkish airport. The amounts should be in US dollars or euros.
A document proving residence outside Turkey by presenting an officially certified address outside Turkey.
A visit to the immigration department to obtain a certificate of non-residence in Turkey for a period of 6 months.
Visiting the General Directorate of Security to obtain a document showing entry and exit movements to and from Turkey.
After obtaining these official documents, an application can be submitted to the Turkish Tax Department to obtain the VAT tax exemption.

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What is tax exemption in Turkey, who is eligible, and when?

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