VAT Exemption in real estate investments

1. VAT rates on property purchases in Turkey

The VAT (KDV) rate for property purchases varies depending on the type and location of the property:

Property Type	Average Rate	Details
Residential units under 150 m²	%1 - %8	Usually subject to lower rates.
Residential units over 150 m²	%10	Fixed rate for larger properties.
Commercial units and land plots	%20	Depends on the land’s classification.

Even if a property is classified as residential, its land zoning status may result in a higher VAT rate. For details and current regulations, you can always consult your Reptur advisor.

2. Who qualifies for VAT exemption?

Foreign investors residing outside Turkey may be eligible for a full VAT exemption if they meet all of the following criteria:

a. Not residing in Turkey for more than 180 days in the past year
b. Having no active residential address in Turkey within the last six months
c. Paying the full property amount via international bank transfer in foreign currency

Once these conditions are met, the property purchase is completely exempt from VAT.

3. Required documents

- Proof of foreign residence
- Certificate from the Directorate General of Migration Management showing non-residency in Turkey
- Notarized Turkish translation of passport
- Property sales agreement
- Notarized power of attorney (if a representative is acting on your behalf)

Reptur ensures all documents are accurately prepared and submitted — and coordinates directly with the Tax Office for approval.

4. How the process works

a. Eligibility check
b. Preparation and translation of required documents
c. Application to the tax office through a licensed attorney
d. Title deed (Tapu) registration after official approval

Reptur’s legal team manages each stage transparently, keeping you informed throughout.

Frequently Asked Questions

What is VAT exemption for foreign buyers?

Foreign residents living abroad can purchase property in Turkey without paying VAT if certain legal conditions are met.

Which properties qualify?

Both residential and commercial properties. The final rate depends on property size and land status.

Who must file the exemption application?

Only a licensed attorney can submit the application. Personal applications are not accepted.

Are VAT rates fixed?

No. The rate depends on the property’s location, size, and zoning classification.

What happens if documents are missing?

Missing or incorrect documents may lead to application rejection. Reptur verifies all paperwork in advance to avoid delays.

Choose Reptur for your VAT exemption process

Fill out the form and let our legal experts manage every stage of your VAT-free property purchase.