Turkish Real Estate Initiatives: Revitalizing the Property Market

Introduction

The Turkish real estate sector is pivotal for economic growth. The government, recognizing its significance, has rolled out various initiatives bolstering the market. In this article, we’ll delve into these measures, highlighting their impact on buyers, sellers, and investors.

Land Registry Title Deed Fee Reduction

The government has sliced land registry title deed fees. Earlier, both buyer and seller shouldered a 2% fee. Now, they pay just 1.5% each, cumulatively amounting to 3%. This step eases the financial load on property transactions, urging more stakeholders to explore the market.

VAT Exemptions for Foreign Buyers

With Turkey drawing foreign property investors, the government offers VAT exemptions for those purchasing in foreign currency and not living in Turkey. They must retain the property for a minimum of one year to be eligible. This step is set to pump more foreign funds into the Turkish property sphere.

Stamp Duty Cut

The real estate sector benefits further from the slashed stamp duty for “promise to sell agreements.” Previously, this stood at 0.95%. Now, it’s a flat 0%, making such agreements more financially appealing, thereby driving market momentum.

Turkish Real Estate: Tax Incentives Galore

Several tax reliefs are in play to invigorate the property market:

• VAT on housing sales and furniture slashed from 18% to 8% until December 31, 2019.
• The maintained title deed fee of 3% and the pause on special consumption taxes on domestic appliances last until the end of 2019.
• For vehicles with engines under 1600cc, special consumption tax rates drop to 15%. Meanwhile, VAT for commercial vehicles stands at a mere 1%.

These measures make property investment more enticing, setting the stage for enhanced market vibrancy.

Wrapping Up

The Turkish real estate initiatives underscore the sector’s economic clout. By streamlining fees, offering exemptions, and enacting tax cuts, the government is setting the pace for a robust property market. Both domestic and foreign stakeholders stand to gain, marking a bright trajectory for Turkey’s real estate landscape.

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