VAT Exemption for Foreign Investors While Buying Property

VAT is the abbreviation of Value Added Tax. Value added tax is an excise tax applied to a product at each point of sale where value added is added. According to Turkish Law, persons (citizens or foreigners) who have not resided in Istanbul Turkey for the last six months are not taxpayers in Turkey. In addition, VAT exemption can be applied only for zero projects in real estate investments. The seller pays VAT on the goods and then includes it in the purchase price. There are two types of VAT based on a property, 1% and 18%. In practice, developers or projects require an official document for VAT-free sale of the property. VAT exemption certificate issued by the State Tax Office. There are three document requirements that must be obtained from certain institutions for VAT exemption;

 

 

 

 

Official entry and exit letter to Turkey issued by the General Directorate of Security. Letter from the Immigration Office, not residing in Istanbul Turkey. Official proof of address from the competent authority of the applicant's country. Each document is issued in approximately 7 days. These three documents are prepared and submitted to the State Tax Office. The State Tax Office examines the documents and issues the VAT exemption document if all the information and documents are sufficient. After the VAT exemption certificate (issued by the State Tax Office) is given to the contractor or the project, sales can be continued by subtracting the VAT from the purchase price or returning the VAT amount from the purchase payment made. In this way, it becomes easier to acquire Turkish citizenship in Istanbul Turkey and to purchase VAT-free property for subsequent real estate investments. You can continue the process of purchasing a suitable apartment by paying less money for the house you want. Our Area Istanbul Real Estate Company consultants will assist you in this process.

 

If you want to buy a property in Istanbul Turkey at a cheaper price than its value, contact us.

 

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