What Does Turkish Government Do To Support Real Estate Sector?

The Turkish state, viewing the real estate sector as one of the engines of economic growth, operates various incentive and support mechanisms. For foreign investors, leveraging these supports correctly can significantly boost returns.

1. VAT Exemption for Foreigners

Foreign nationals without a Turkish residence permit pay no VAT on first-hand residential/commercial purchases from developers. This can provide a meaningful cost advantage to the buyer. Conditions:

• Property price must be transferred from abroad in foreign currency (DAB document)
• If the property is sold within 3 years, the exemption is reclaimed
• Must be first delivery — second-hand does not qualify

2. Turkish Citizenship Program

Foreign nationals are granted citizenship through real estate investments of $400,000+. The process takes 3-6 months. A 3-year holding requirement applies. Since 2017, more than 50,000 families have benefited from this program.

3. Urban Renewal Supports

Buildings classified as risky are placed in urban renewal by the Ministry of Environment, Urbanization and Climate Change. Owners receive:

• Rent assistance (for temporary housing)
• Low-interest loans (TOKI or banks)
• Tax advantages (title fee exemption)

4. Support for First-Time Buyers

• Social housing projects (TOKI): for middle-income families
• First-home VAT reduction (domestic buyers)
• Housing savings account: a state contribution scheme for eligible savers (check the current conditions)

5. Mega Infrastructure Projects

The state's strongest indirect support comes through infrastructure. Projects that multiply nearby property values:

• Istanbul Canal: Black Sea-Marmara connection
• Istanbul Airport: The world's largest hub
• Marmaray and metro lines: Continuously expanding network
• YHT network: Ankara-Sivas, Ankara-Izmir lines
• 1915 Çanakkale Bridge: World's longest suspension bridge

6. Investment Incentive System

Regional incentives are granted by presidential decree for large-scale tourism/industrial investments. For example, in Region 6:

• Corporate tax reductions under investment incentive schemes
• Social security employer share paid by the state for 10 years
• Customs duty exemption
• Land allocation (in organized industrial zones)

7. Low-Interest Housing Loans

The state periodically launches low-interest housing loan packages for first-time buyers. Family Housing campaigns and marriage support also lift housing demand.

Practical Takeaway for Foreign Investors

Making smart use of these supports can improve the overall return of an investment. The VAT exemption combined with the citizenship programme sets Turkey apart from competing markets.

In practice, several of these measures mainly affect new-build purchases. Compare new build vs resale property, check the total cost of buying property in Turkey and see how Turkish citizenship by investment works before you decide.

To learn which supports fit your investment, talk to our experts.

Related reading: Turkey real estate market 2026 · Kanal Istanbul and the property market · getting Turkish citizenship by buying property

Thinking of buying in Istanbul? Browse property for sale in Istanbul or get a free consultation.