VAT Discount on Housing Purchases in Turkey
There are many different details among the incentives for the increase of foreign investors in Turkey. Turkey, which hosts visitors from all over the world and allows foreign investors to make profits in a short time from its investment opportunities, is among the most popular destinations for investors lately. Turkey, which offers a $250,000 citizenship opportunity with the recent amendment to the Citizenship Law, allows people to both earn money and hold citizenship of the Republic of Turkey.
Istanbul, Antalya, Ankara and Bursa are among the regions where foreigners buy the most apartments in Turkey. Iranians, Russians, Iraqis, Afghans and Azerbaijanis are the citizens of the countries who buy the most real estate in Turkey. The average cost spent by people buying property in Turkey is reported to be $160,000. One in four people who buy real estate in Turkey seeks citizenship of the Republic of Turkey. Persons considering acquiring citizenship of the Republic of Turkey should purchase real estate worth at least $250,000 and not sell such real estate for 3 years. These persons can make their families citizens of the Republic of Turkey as well as themselves.
The number of people making real estate investments in Turkey accounts for 10 percent of the total real estate sales. Real estate sales to foreigners in Turkey amount to around 7 billion dollars. While 90 percent of investors in Turkey buy apartments, family houses, villas, commercial properties and buildings follow. 40% of people who buy property in Turkey consider living in our country.
VAT rebate in housing construction in Turkey increases the number of investors
The decision of the Council of Ministers of Turkey's Grand National Assembly had previously made VAT regulation and increased sales of real estate. It was decided to apply 8 percent VAT to the supply of apartments with a taxable value between TL 500 and TL 1000 per square meter for construction projects for which building permits were issued between 2013 and 2016. A VAT rate of 18 percent was charged for apartments with a tax value of more than 1 thousand TL per square meter.
Foreign investors who want to invest in Turkey, on the other hand, are waiting for cheaper options in residences. Accordingly, foreign investors are exempt from VAT levied at their place of residence. Foreigners buying real estate in Turkey can seize this opportunity immediately when their investment reaches $250,000. This time, if the investment amount is less than $250,000, the person must live in Turkey for 5 years and then apply for citizenship of the Republic of Turkey.
The VAT deduction also applies to products to be used in new homes. VAT for combination boilers, glass balconies, radiators, shower cubicles, kitchen cabinets and similar products will be reduced from 18 percent to 1 percent. This means a discount of about 5,000 TL on a house that sells for an average of 300,000 TL.
At the same time, real estate prices in Turkey are increasing in value with house sales increasing day by day. Investing in real estate in Turkey ensures that the investment returns to the person in a short period of time.
FREQUENTLY ASKED QUESTIONS IN TURKEY ABOUT HOUSE SALES
Question: I am not a citizen of the Republic of Turkey but I would like to buy real estate in Turkey. What are the benefits of VAT?
Answer: With the decision taken about 4 years ago, the Republic of Turkey introduced the VAT exemption for people considering investing in Turkey. Foreign investors do not pay VAT on business and home purchases. However, the VAT exemption does not apply to land, land and field purchases. Foreigners must pay VAT on land, land and field purchases.
Question: How many places of residence and work can I purchase for foreigners within the scope of the sales tax exemption?
Answer: Foreign investors who are VAT exempt can buy as many homes and jobs as they want and they can get VAT exemption on all those properties.
Question: I bought a property before April 1, 2017. Do I have to pay VAT?
Answer: The decision of the Council of Ministers applies from April 1, 2017. For this reason, foreigners registered in the title deed before April 1, 2017 have to pay VAT.
Question: I want to buy a property without paying VAT. What should I do?
Answer: People who buy property by benefiting from the VAT exemption should contact the land registry where the property they wish to buy is located. These people must have their identity papers, passports and residence permits with them. In the assessment carried out after the preliminary application, if the person is not opposed to the VAT exemption, the purchase promise contract is signed in the presence of a notary. Transfers are made at the land registry.
Question: I bought a property with a VAT exemption. What happens if I sell the property within 1 year?
Answer: The property purchased as part of the sales tax exemption must remain with the purchaser for at least 1 year. If the property is sold within 1 year, this time the person will have to pay the uncollected tax along with the deferred interest.
Question: Which properties are covered by the VAT exemption?
Answer: The buildings that benefit from the VAT exemption must have planning permission and be delivered ready for use by the buyer. Apartments, shops, shops, offices, offices and all similar real estate can be purchased VAT-exempt.
Question: When is the VAT exemption reimbursed?
Answer: The VAT exempt portion of the price related to the property purchased under the VAT exemption is realized after payment to the seller. If the refund does not exceed 5,000 TL, it will be paid without obtaining the CPA report, security and tax audit report. If this amount exceeds 5,000 TL, the payment will be made according to the tax audit report and the auditor's report.
Question: What documents do we need to apply for the VAT refund?
Answer: The standard refund application of the person applying for the VAT refund, the VAT list for the period for which the exemption is requested, the list of sales invoices, the documents to be provided by the sellers, the bank documents that the foreign currency was brought into Turkey and a sample title deed is required for the sale.
WITH 2 CLİCKS WE ARE READY TO SERVE YOU
As 2 Clicks, one of the leading companies managing the property buying process in Turkey, we answer all the questions that foreigners have about the properties they want to buy in Turkey and we prevent potential problems. You can also contact us to benefit from the services we offer and after the meeting you can find answers to your questions.
Türkmen Mahallesi, Saçıkara Sokak, B-Block NO. 21 B, Kuşadası-Aydın, Turkey. You can reach our company based in Turkey on phone number +90 (544) 443 46 24 and quick call via WhatsApp. You can send an email to 2Clicks.io via [email protected] and get detailed information about our work.
Call now to buy property in Turkey and take advantage of Turkey's development opportunities.
