The right to purchase real estate in Turkey without paying VAT for foreign nationals was also recognized by the Turks who live aboard for 6 months with a work permit and residence. Turkish citizens residing abroad may also own real estate without paying VAT.
New regulations and the bill in Tax laws, has been dealt with in the TGNA and envisaged this change. With this new proposal, foreigners living abroad and Turkish nationals living aboard will be exempted from the VAT of 18 percent, which is required to pay when purchasing new real estate.
They will not be allowed to sell on this property for a year.
However, Turkish nationals living abroad, like foreigners who purchase property in Turkey will not be able to sell these properties they have purchased without VAT in the country within the first year of ownership. If they do sell, they will be charged VAT that they did not pay at the time of purchase.
There was another item which is included in the new regulations bill which gives 5 percent discount to pay the tax regularly. Accordingly, in addition to those engaged in commercial, agricultural and professional activities, insurance agencies will benefit from the discount. Those who meet the discount conditions will be liable for 5 percent deduction for paying annual income or corporation tax returns.
However, the upper limit of this discount will be 1 million TL. If the 5% discount is over 1 million TL, the last part will not be subject to discount. The upper limit of this 1 million TL will be increased yearly by the revaluation rate. The amount deducted will be deducted from the other taxes within 1 year by the declaration of the taxpayer, if the taxpayer needs to be paid more.