Fidan Property Guide

VAT Exemption for Real Estate Sales to Foreigners

Foreign individuals who do not reside in Turkey may benefit from VAT exemption when purchasing housing or workplaces. This exemption applies when the sales price is paid in foreign currency and the property is not resold within one year.

VAT Exemption Overview

VAT exemption for real estate sales to foreigners is available for eligible foreign buyers purchasing housing or workplace properties in Turkey. The exemption is designed for foreign individuals who are not residing in Turkey and who meet the required legal and financial conditions.

In order to benefit from VAT exemption, the property must be a developed real estate asset, not land. The property should also have a valid building license, and where applicable, the title deed must be converted into construction servitude.

VAT exemption may cover various property types listed in the building license. However, this exemption applies only to the initial transfer of the property.

The property cannot be resold within one year. If the property is resold before the required period, VAT collection may be applied.

Key Conditions

Buyer Status The buyer must be a foreign individual not residing in Turkey.
Property Type The property must be developed real estate, such as housing or workplace property.
Foreign Currency Payment At least 50% of the property price must be paid to the seller in foreign currency.
Resale Restriction The property must not be resold within one year.

Eligibility & Required Documents

Main eligibility rules and buyer documents required for VAT exemption in real estate purchases by foreigners.

Eligibility for VAT Exemption

Foreigners without citizenship ties to Turkey and those who do not reside in Turkey for more than six months annually may be eligible for VAT exemption.

Property Conditions

  • The property must be developed and not classified as land.
  • It should have a valid building license.
  • The title deed must be converted into construction servitude where applicable.
  • The exemption applies only to the initial transfer of the property.

Payment in Foreign Currency

At least 50% of the property’s sales price must be paid in foreign currency to the seller. The remaining payment should also be completed according to the applicable procedure.

Resale Restriction

The property cannot be resold within one year. If it is sold before this period, VAT may be collected.

Required Documents from Foreign Buyers

  • Passport copy
  • Resident certificate from the buyer’s home country with Apostille
  • Document proving no settlement in Turkey
  • Document confirming less than six months’ residence in Turkey
  • Signed petition
  • Preliminary sales contract
  • Power of attorney, if previously provided for VAT exemption

Important Note

VAT exemption requirements may vary depending on the buyer’s status, property type, payment method, and official documentation. All documents should be prepared accurately before the transaction.

Need Support with VAT Exemption?

Fidan Property can guide you through the VAT exemption process, required documents, payment procedure, and real estate purchase steps in Turkey.

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