VAT exemption in Turkey

VAT exemption

The value-added tax in Turkey constitutes additional costs for foreign investors, so the Turkish government has provided a concession that gives some investors the right to obtain exemption from value-added tax in Turkey and get vat exemption in turkey , as part of its support for foreign investment.

VAT exemption in Turkey

What categories are eligible for VAT exemption in Turkey?

Some categories are within vat exemption in turkey according to Article 13-i of the Turkish VAT Law when buying a home or workplace for the first time in Turkey, provided that other conditions mentioned in the law are met, and these categories are:

  • Turkish citizens residing outside Turkey.
  • Real foreign persons who do not reside in Turkey.
  • Foreign institutions with permission to own real estate in Turkey within the scope of special laws.

What are the conditions for obtaining a VAT exemption in Turkey?

It is important to identify the investors who benefit from the vat exemption in turkey and confirm that they meet the following conditions:

  • To be a real foreigner.
  • Lack of citizenship ties with the Turkish Republic.
  • Not to reside in Turkey continuously for more than 6 months in a calendar year (except for some cases mentioned in Article 5 of the Income Tax Law).

In order to obtain the vat exemption in turkey after the previous qualifications are available, other conditions must be adhered to:

  • Bringing the purchase value to Turkey in foreign currency.
  • Not selling real estate for a year, and if the sale took place within less than a year, the seller must pay the exempted value added tax.
  • New real estate purchased through a contracting company.
  • The vat exemption in turkey includes only housing, offices and workplaces, as for agricultural land, it is not covered by the exemption.

read also

The 7 best shopping outlet malls in istanbul

What documents does a Turkish citizen reside outside Turkey need?

  • Work permit, or equivalent documents from the official embassies and consulates of Turkey in the country of residence.
  • A document proving the residence of the Turkish citizen outside Turkey for at least six months before buying the property.

What documents does a foreign investor need in Turkey?

  • A copy of the current valid passport.
  • The document that must be obtained from the tax office at the place of residence or workplace, which indicates that the foreign natural person has not settled in Turkey, and the following papers are submitted to the tax office in order to obtain the document:
  • Notarized translation of the passport.
  • Notarized proof of the foreign address outside Turkey.
  • Passport processing from the Turkish Police Department.
  • A letter from the Directorate General of Immigration stating that the applicant is not residing in Turkey.

The required documents must be received from the buyer before handing over the housing or workplace.

read also 10 Services provided by the Turkish E-government to its citizens from their homes

How is the purchase value brought to Turkey in foreign currency and officially proven?

An important condition to benefit from the vat exemption in turkey is that at least 50% of the price must be brought to Turkey before the invoice is issued. The remaining 50% must be paid to the seller within one year at the latest.

VAT exemption

The rule is that the buyer pays the seller directly by bank transfer. However, in credit card payments, it is also possible to prove that the amount was brought to Turkey with a letter from the relevant bank.

It is also possible to actually bring the foreign currency abroad to Turkey physically by the buyer, in this case the documents obtained from the customs administration are used to prove that the foreign currency has been brought to Turkey. It is also possible to pay the price brought from abroad in foreign currency to the seller in Turkish lira.

The value-added tax in Turkey constitutes additional costs for foreign investors, so the Turkish government has provided a concession that gives some investors the right to obtain exemption from value-added tax in Turkey and get VAT Exemption In Turkey, as part of its support for foreign investment.

VAT exemption in Turkey

What categories are eligible for VAT exemption in Turkey?

Some categories are within vat exemption in turkey according to Article 13-i of the Turkish VAT Law when buying a home or workplace for the first time in Turkey, provided that other conditions mentioned in the law are met, and these categories are:

  • Turkish citizens residing outside Turkey.
  • Real foreign persons who do not reside in Turkey.
  • Foreign institutions with permission to own real estate in Turkey within the scope of special laws.

What are the conditions for obtaining a VAT exemption in Turkey?

It is important to identify the investors who benefit from the exemption and confirm that they meet the following conditions:

  • To be a real foreigner.
  • Lack of citizenship ties with the Turkish Republic.
  • Not to reside in Turkey continuously for more than 6 months in a calendar year (except for some cases mentioned in Article 5 of the Income Tax Law).

In order to obtain the exemption after the previous qualifications are available, other conditions must be adhered to:

  • Bringing the purchase value to Turkey in foreign currency.
  • Not selling real estate for a year, and if the sale took place within less than a year, the seller must pay the exempted value added tax.
  • New real estate purchased through a contracting company.
  • The exemption includes only housing, offices and workplaces, as for agricultural land, it is not covered by the exemption.

What documents does a Turkish citizen reside outside Turkey need?

  • Work permit, or equivalent documents from the official embassies and consulates of Turkey in the country of residence.
  • A document proving the residence of the Turkish citizen outside Turkey for at least six months before buying the property.

What documents does a foreign investor need in Turkey?

  • A copy of the current valid passport.
  • The document that must be obtained from the tax office at the place of residence or workplace, which indicates that the foreign natural person has not settled in Turkey, and the following papers are submitted to the tax office in order to obtain the document:
  • Notarized translation of the passport.
  • Notarized proof of the foreign address outside Turkey.
  • Passport processing from the Turkish Police Department.
  • A letter from the Directorate General of Immigration stating that the applicant is not residing in Turkey.

The required documents must be received from the buyer before handing over the housing or workplace.

How is the purchase value brought to Turkey in foreign currency and officially proven?

An important condition to benefit from the exemption from VAT is that at least 50% of the price must be brought to Turkey before the invoice is issued. The remaining 50% must be paid to the seller within one year at the latest.

VAT exemption

The rule is that the buyer pays the seller directly by bank transfer. However, in credit card payments, it is also possible to prove that the amount was brought to Turkey with a letter from the relevant bank.

It is also possible to actually bring the foreign currency abroad to Turkey physically by the buyer, in this case the documents obtained from the customs administration are used to prove that the foreign currency has been brought to Turkey. It is also possible to pay the price brought from abroad in foreign currency to the seller in Turkish lira.

Join The Discussion

Compare listings

Compare