Turkey’s real estate market, and especially Istanbul, the highest priority is the real estate market in Europe. One of the reasons for this popularity is the geographical location of Istanbul. Despite the fact that the official capital of Turkey is Ankara, Istanbul remains the major tourist, economic, trade and industrial center of the country. Therefore Istanbul offers excellent opportunities for real estate developers and investors. While the large construction sector combined with the growing volume of trade and production. And now Istanbul’s real estate market has become more accessible. It was learned that foreigners are exempt from VAT when buying a home or business.
Value Added Tax (VAT) is being abolished in foreign residential sales. On the average estimate foreigners are exempt from VAT for housing or business in the amount of about 300 000 dollars. Amendments to the “Law on Income Tax” that cover the regulation of the tax sector, is expected to take the Parliament in the near future.
According to statistics, sales of housing to foreigners in recent months have fallen considerably. In this regard, exemption from VAT can greatly revive Turkey’s real estate market and thus attract more new investors. This solution can significantly accelerate the development of the economic sector. This is important in terms of attracting foreign capital. Foreigners are buying a business, will create new jobs, which also have a positive impact on the production sector. In general, such a decision will have stimulatory effect for the buyers of real estate and for the sellers.