What Does Turkish Government Do To Support Real Estate Sector?
Since the Turkish real estate market is very important and valuable for the Turkish government they support it in many different ways like:
Reduction of Land Registry´s title deed fees from 2% to 1.5%, which are payable by both the buyer and the seller (or around 3% in total).
VAT exemptions for property owners who buy a Turkish property but do not live in Turkey, on a condition that they pay for the property with foreign currency. Homebuyers must also hold the property for 12 months after purchase.
Stamp duty for "promise to sell agreements" was reduced to 0%, from 0.95%.
It was declared by the Ministry of Treasury and Finance Minister that a set of tax cuts shall be effective on November 1, 2018:
VAT on housing sales and on the furniture sector was cut from 18% to 8%, until December 31, 2019.
The lower title deed fees rate from 4% to 3% (1.5% for seller and 1.5% for buyer) will continue until December 31, 2019.
The suspension of special consumption taxes on domestic appliances continues until June 30, 2019.
Special consumption tax rates for motor vehicles with engines under 1600cc are reduced to 15%.
Reduction of all VAT rates for commercial vehicles from 18% to 1%.