Posted on 31 March 2017
If the crystal clear waters of the Aegean and Mediterranean Seas, golden sands and relaxed lifestyle weren’t enough to persuade you to buy your dream home under the enduring Turkish sun, then two new government incentives for overseas property buyers may just tip the balance.
The Turkish government has introduced a new law that makes first time buyers from another country exempt from paying the 18% VAT imposed on property purchases – a welcome development that will leave potential buyers with more money at their disposal than ever before. Money that could be used to carry out renovations, build a swimming pool or even upgrade from an apartment to a villa.
Passed on 23rd February, this favourable legislation for overseas property buyers will also apply to those Turkish citizens who have been living and working overseas for six months or over. The law, which aims to stimulate the Turkish property market following the country’s security issues and involvement in Syria, is similar to that of many other countries. It does, however, come with three caveats:
- The VAT is only exempt for foreign investors buying their first property in Turkey
- The property should not be sold for at least a year, otherwise the VAT will be charged
- The property has to be bought in foreign currency
If you’re tempted by these incentives, discover how to buy in Turkey by downloading a FREE guide from the Turkey property guide.
Golden visa scheme
The move comes hot on the heels of another government incentive that will grant Turkish citizenship to foreign buyers who invest more than $1 million in properties in the country. This golden visa scheme – announced earlier this month – offers foreign investors five paths to citizenship:
- They must have bought $1 million worth of property and retain ownership for at least three years
- They have made a fixed capital investment of at least $2 million
- They have kept more than $3 million in bank deposits for at least three years
- They have helped to create a minimum of 100 jobs in Turkey
- They have held government-issued bonds worth at least $3 million and have not been diversified for three years.
So, there’s never been a better time to buy your dream home in Turkey. The government is welcoming overseas investment with open arms, by implementing these enticing incentives that could help you realise your long held ambition of calling Turkey home – whether it’s on a permanent or part-time basis.
For more about living in Turkey, visit Turkey Property Guides where you can download your FREE Turkey Buying Guide here!