VAT Exemption

No. You are typically required to hold the property for at least 3 years after purchase. Selling it earlier may result in losing the VAT exemption benefit and having to repay the tax.

Yes. With the help of a licensed real estate agent or legal representative, the VAT exemption application and property purchase process can be completed remotely. You must still prepare and send apostilled documents from your home country.

No. VAT exemption is only available for first-time purchases of newly constructed properties from a registered developer. Second-hand/resale properties are not eligible.

Incomplete or non-compliant documents (e.g., missing apostille or incorrect address) will result in rejection of the VAT exemption application, and you may be required to pay the full VAT amount.

Once your documents are prepared and apostilled:

• Share them with your real estate agent or legal representative in Turkey.
• They will handle the submission to the Turkish tax office on your behalf.

An apostille certifies that a document is authentic and legally valid for international use. Your residency certificate must be apostilled so that it is accepted by Turkish authorities. If your country is not part of the Hague Convention, you will need consular legalization instead.

You need to provide a valid Residency Certificate from your country of residence. This certificate must:

• Be issued by an official government authority.
• Include your full name, current residential address, and date of issue.
• Be apostilled in accordance with the Hague Apostille Convention.

Buyers can save up to 20% of the property’s total value, depending on the applicable VAT rate for that specific property.

Yes, both residential and certain commercial properties (such as offices and shops) may be eligible, provided all other exemption criteria are met.

To benefit from VAT exemption, you must meet the following criteria:

• Be a first-time buyer of a newly built property in Turkey.
• Use the property as your primary residence.
• As a foreign buyer, you must not have resided in Turkey for more than 6 months in the year of purchase.
• The payment must be transferred from abroad in foreign currency.

To apply for VAT exemption, foreign buyers must submit a Residency Certificate from their home country. Here’s how:

• Document Requirements:
  • Issuing Authority:
    • Must be issued by a government authority (e.g., municipality, population registry).
  • Content Requirements:
    • Must clearly state your full legal name, current address, and date of issuance.
• Apostille Requirement:
  • The certificate must be apostilled under the Hague Convention.
  • If your country is not part of the convention, consular legalization may be required.

❗Utility bills are not accepted as proof of residency.

Up to 20% Cost Savings
Buyers can save a significant portion of the total purchase price, making Turkey’s already competitive property market even more attractive.

• Simplified Process
  VAT exemption streamlines the overall buying procedure and reduces bureaucracy, especially when working with experienced agents.
• Stronger Market Incentives
  This incentive encourages increased demand from foreign buyers, contributing to a more vibrant property market.

To successfully apply for VAT exemption, buyers must meet these key conditions:

• First-Time Purchase: The buyer must not have previously purchased any real estate in Turkey that was VAT-exempt.
• Primary Use: The property must be used as the primary residence (not for immediate resale or rental).
• Residency Status: Foreign buyers must not have resided in Turkey for more than 6 months prior to the purchase.
• Payment from Abroad: The purchase amount must be transferred to Turkey from a foreign bank account.
• Price Cap: Certain high-value properties may fall outside the scope of exemption.

The exemption applies to:

• New residential properties – apartments, villas, etc.
• Commercial units – offices, shops, warehouses (in some cases)

Note: Only first-time purchases of newly constructed properties are eligible for VAT exemption.

In Turkey, Value Added Tax (VAT) on real estate varies depending on property type and size:

• Residential properties: VAT ranges between 1% and 20%.
• Commercial properties: Generally subject to a fixed 20% VAT rate.

However, foreign investors and eligible first-time buyers can benefit from full VAT exemption, significantly reducing the cost of acquisition.