Tax Exemption Cases in Turkey

الضرائب العقارية في تركيا

Among the government incentives offered by the Turkish government to foreigners is the tax exemption system in Turkey.

for specific cases and conditions with the aim of attracting more foreigners interested in owning Turkish real estate and investing in it.


1-What Is Meant by Tax Exemption in Turkey?

  • The tax exemption law for Turkish real estate was first issued in early 2017. It stipulates the exemption of foreign investors and Turkish citizens.
  • residing abroad from paying the Value Added Tax (VAT) on the purchase of real estate in Turkey for a period of over six months.
  • This is done to encourage them to invest in property ownership in Turkey.


2- What Does the Tax Exemption on Turkish Real Estate Include?

  • The tax exemption covers the VAT, which is 18% for commercial properties and 1% for residential properties with an area less than 150 square meters.
  • For properties larger than this, the additional square meters are calculated at 18% VAT in Turkey.


3- Cases Not Covered by the Tax Exemption System in Turkey

There are taxes not covered by the tax exemption system in Turkey, such as:

  • Real estate transfer tax in Turkey, which is fixed at 4% of the property value.
  • Municipal annual taxes in Turkey, equivalent to 0.01%.
  • Monthly taxes, referred to as “revenues,” paid to the housing complex management based on the apartment’s size and the number of rooms in return for social, security, and recreational services.

الضرائب العقارية

4- Conditions for Exemption from Value Added Tax on Turkish Real Estate:

  • To obtain a tax exemption in Turkey from the Value Added Tax, the following conditions must be met:
  • The full amount allocated for the purchase of the property in Turkey must be transferred from abroad through a bank transfer to any licensed bank in the Republic of Turkey, whether public or private.
  • The investor should not have a valid residence permit in Turkey for a period exceeding six months.


5- Required Documents for Obtaining Tax Exemption in Turkey:

The necessary documents to obtain the tax exemption in Turkey include:

  • A bank statement confirming the transfer of the property value from abroad through a bank transfer.
  • A certificate of non-residence in Turkey, which can be obtained from the Turkish Directorate of Population or the Directorate of Immigration and Foreigners.
  • A movement statement that can be obtained from the General Directorate of Security to track the investor’s movements during their recent travel to and from Turkey.


The tax exemption is one of the various incentives, laws, and regulations issued by the Turkish government to encourage foreigners to own Turkish real estate and invest in it.

الضرائب في تركيا
الضرائب في تركيا

Other incentives also include granting foreigners real estate residence permits in Turkey and Turkish citizenship under specific conditions and regulations


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