In its constant quest to support the national economy and encourage investment, the Turkish government continues to provide facilities to Turkish people abroad and foreigners wishing to invest their money in Turkey through the enactment of many laws and amendments aimed at attracting them to invest in Turkey, whether amending the citizenship law by allowing foreign people who buy real estate With a value of $ 250,000 by submitting an application for Turkish nationality or other amendments, including the law approved by the Turkish government in 2018, the tax exemption law for foreign investors and Turks residing outside Turkey (Value Added Tax), we will present to you in this article the conditions that must be met to benefit from the tax exemption and the necessary papers Submit it in the exemption request.
Conditions for exemption from VAT:
1- "Foreign individuals not residing in Turkey” and "Foreign corporate entities not based in Turkey” are the only ones who are able to benefit from this privilege.
2- The applicant must not have resided in Turkey for more than 6 months in the last year.
3- The applicant must not have a valid residence permit in Turkey from the previous year.
4- The applicant must not have a registered address in Turkey. And if he owns any such address, it is not a big problem as he can easily revoke that address.
5- The exemption from VAT is only available for the new property, while the old properties are not included in the scope of this concession.
6- The exemption from VAT is only available for residential buildings (such as apartments, villas, etc.), offices or workplaces. Other types of real estate such as land or agricultural land are not included within the scope of this concession.
7- Payment for real estate investment must be in foreign currency. Of course, the amount must be paid to the selling real estate company. The most important point is that the funds should come from abroad, and this must be proven by either a wire transfer invoice or a customs declaration document in case of cash transfer to Turkey.
8- The property benefiting from the tax exemption cannot be sold again for one year.
Papers and documents required for tax exemption:
1- A translated copy of the applicant's passport.
2- Receipt of payment
3- A translated copy of a document proving that the applicant lives in a country other than Turkey.
4- Real estate sale agreement.
5- Turkish tax number.
6- An official agent, if the investor is to authorize a lawyer to follow up on the application.
7- Request for tax exemption
This was the most important information that could benefit you as investors to benefit from the advantages of tax exemption, and as a last information we want to point out its importance that you should be very careful when submitting an application for a tax exemption with the Tax Directorate, especially since any mistake in submitting the application or missing any paper In this transaction, it may be a reason for investors to miss their opportunity to benefit from the exemption. Therefore, we advise you to have a Turkish lawyer present when applying for VAT exemption, in order to avoid making mistakes, which could lead to losing your right to tax exemption.