Good news, foreıgners who buy a house ın Turkey wıll not pay 18% VAT

Update : 08.03.2017

Foreigners who do not settled in Turkey and the companies which have not an office in Turkey or institutions that don’t make profit in Turkey will not pay (%18) VAT on the first purchasing of office and residence provided that they pay the foreign currency to be obtained from abroad. By taking advantage of VAT exemption, the people who purchased residence or business office in Turkey will not be able to sell these real estate for a year, and if they sell these houses and business offices within one year, the tax which didn’t collect on time will be collected. The regulation which provides VAT exemption for foreigners while purchasing residence and business office in Turkey will start to be implemented from 1 April.

The Government has deepened the works in the housing sector and passed a new regulation which anticipates providing VAT convenience to the foreigners who want to buy a house.

New works have been carried out on this subject for boosting the housing sectors and the government has given an incentive to the markets. The housing campaigns have mobilized the sector as well as contributing into its development. It is decided that various conveniences are offered to enhance the housing and investment opportunities of the foreigners in 2017. In addition to giving citizenship to the foreigners who make an investment by buying a house for 1 million dollars or a higher amount, it was decided that incentives are offered such as VAT discount and remitting the stamp duty.

According to the recent statements by the Minister of Finance, Naci Ağbal, it is decided that a new incentive is given for the real estate sector in 2017. It is decided that VAT, which was previously decided to be discounted, is remitted for the foreigners who buy property in our country. Following this practice which aims to increase the foreigner’s coming to the country and encourage them for investments, Minister Naci Ağbal said; “When the foreigners come for holiday, they stay for a week and then go back, but if they have a house here, they will stay continuously”.

According to the real estate statistics in 2016, there was substantial decrease in the property sales to foreigners. Given that, it is decided that VAT is remitted for the foreigners who buy house in order to increase these rates and boost the sales. It is expected that this decision will increase property sales to foreigners significantly.

Update: 22.02.2017

The Ministry of Finance has stated that the foreigners who purchased houses will be exempted from paying 18 % VAT on condition of not selling the property for 1 year and after 1 year if the property will be sold to someone 18% VAT still will not be applied.

2 Comments

  • ExpatGuideTurkey

    Dear Mr/Mrs Bose,

    According to the Turkish Work Law, employer who will retire have the right to get a severance pay of the last wage multiplied bu the number of years they worked for this employer.

    Also, we cannot tell exactly what kind of payment Mr Ergin asked for, and we strongly thnk it is related to a renovation work. We are not aware of such a payment which must be made to the manager. You should ask for further details concerning it.

    Best Regards,
    ExpatGuideTurkey Team

  • Kana Bose

    Hi

    1) I have owned an apartment in Antalya for 10yrs. There are 35 apartments in the complex. The live in care taker Unal has been there for 10yrs too. He is 52 yrs old and has free accommodation , all bills and his insurance all paid by the owners. He has now said he wants to retire and is expecting owners to pay him severance or a bonus which would be 1 months pay for every year. He at present gets paid 1500 TL a month. That would work out about 15000 TL. He is hoping to collect the money and still stay on to work I feel.
    Is it not true that because Unal is wanting to retire for his own personal gain the employers do not have to pay this severance ?

    2)The manager of the complex Ergin has been doing the job for 4 yrs and he says that with Tax all owners should pay 1000 TL each for Unal which amounts to 35000 TL. The manager has not given us any accounts since he took this job on 4yrs ago. He was renting at first and was not paying his maintenance fee of 100TL a month for doing the job but since last yr has moved out of the complex but still keeps the flat as an office , gets his 100TL maintenance free and is also now taking an additional 300 TL for doing the job. That is a total of 400TL for not doing the job properly.
    I feel there is something not honest about Unal & Ergin and that money is being taken and not used as it should be, as Ergin keeps promising each year to give us accounts but doesn’t.

    Can you please advise regards 1) Unal’s severance or bonus payment and 2) also what can be done about Ergin not providing accounts

    Thank you

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