Of course, it’s possible to have a car in Turkey by foreigners. Moreover, foreigners have some tax advantages. Information about the tax-free vehicle with a stranger as documents required when purchasing a new car in Turkey and executed processes can be found in this article.
As you know, the automobile market grows at the last years. It is possible to buy new models of various brands from dealers, car markets and auto shows. In addition, used cars in the second hand market can be accessed online and through newspaper ads.
To purchase a car in Turkey, the foreigner must first have a valid residence permit.
Purchasing a New Car
The vehicle registration procedures and documents required by foreigners when purchasing a new car are the same as Turkish citizens. However, a license plate from the MA / MZ group is given to a vehicle registered on foreign nationals.
Dealers selling new vehicles usually manage registration documents on behalf of the buyer. A new car must be registered with the Traffic Registration Offices within three months from the date of purchase. Documents required for new vehicle registration include:
- Notary Sales Bond
- Sales Invoice
- Highway Compliance Certificate
- Special Consumption Tax (SCT) Paid Receipt
- Compulsory traffic insurance
Special Consumption Tax and Motor Vehicles Tax
There are regulations regarding fuel economy and CO2 emissions of new vehicles. Official or private CO2 data must be displayed on all new passenger cars for sale or rental; In addition, the CO2 emissions per gram of a car should be documented in the logbook.
Special Consumption Tax (ÖTV) and motor vehicle tax (MTV) are expected to be reorganized to be graded according to the emissions of a car (currently vehicle taxation is calculated based on the vehicle’s age and engine cylinder capacity). These rates are not yet defined, but comply with European Union standards.
Cars are classified in different tax categories according to engine cylinder capacities and ages, and prices include SCT and VAT. You can visit the Revenue Administration website https://ivd.gib.gov.tr to learn the motor vehicle tax for your vehicle.
Tax-Free Car Advantage for Foreigners
A foreigner, who accepted by Turkish Government legally with a valid residence permit, may have the advantage of being tax exempt while purchasing a new car, purchasing an used car (second hand) from another foreigner or importing his/her car to Turkey.
This vehicle tax exemption means that a foreigner has the right to purchase a new car from an authorized dealer without paying Special Consumption Tax (SCT) or Value Added Tax (VAT). This right also applies to other foreigners in Turkey by a foreign car is sold to another.
Note: Although tax-free vehicles are exempt from these taxes, annual road tax (bandrol tax) must be paid.
This tax exemption advantage is valid for only one car per foreign person holding a residence permit (except for diplomatic and NATO personnel who can buy a car for the spouse). Only relevant family members can drive the car; Turkish citizens cannot purchase and drive tax-free vehicles.
Purchasing a Tax-Free (Blue Plate)
The tax-free vehicle also known as “blue plate”, owned by a foreign resident in Turkey, stating that “ME / MZ” vehicle registration plate. Vehicle registration is stated in the “blue license” and is valid during the residence or work permit period of the owner. At the end of the relevant period, if the registration is not renewed, a fine is imposed on the floors of the customs tax rate.
Those who have the right to buy tax-free cars:
- Retired foreigners
- Foreigners who have work permit in Turkey
- Foreign lecturers and students (excluding language course students)
- Foreign staff working for NATO and experts working for the EU
- Residing in Turkey (but non-residents) of foreign media employees
- Ministry of Foreign Affairs ID card holders
Documents required when purchasing tax-free vehicles:
- Passport with residence / work permits
- Notary document
- All documents belonging to the vehicle
- Tax receipts
The sale of a used second-hand car from one foreigner to another usually takes place at the consulate of the seller. There are also specialized companies that offer support in performing these transactions.