Update: The expected law entered into force on April 1, 2017.

VAT-Exemption has been passed in the Turkish parliament for foreigners who are eager to purchase a property in Turkey.

In Turkey, the VAT rate of real estate varies from 1% to 18% depending on the dimension of the apartment. Commercial units such as shops or businesses have a fixed VAT rate of 18%. Foreigners will not pay VAT for real estate anymore.

Turkey's parliament has affirmed an omnibus law which presented an exception of 18 percent of significant worth included duty (VAT) for foreigners who buy real estate in Turkey.

The law, which was passed by parliament late on Feb. 23, will likewise be appropriate to Turks who are abroad for over six months.

Foreign buyers will not pay VAT for their first workplaces or houses in Turkey on the condition that they make their securing installment in USD or Euro and do not sell their properties for any less than one year after the obtaining.

Turkish Citizenship for $1 Million Real Estate

Turkey likewise promised to allow fast Turkish citizenship to foreign buyers who purchase properties worth in any event $1 million and keep them for no less than three years, as indicated by a changed declaration that was distributed in the Official Gazette on Jan. 12, 2017.

Foreign Buyers are Increasing

In the meantime, property deals in Turkey surged 13 percent in the main month of 2017 from a year prior, authority information from the Turkish Statistical Institute (TÜİK) uncovered on Feb. 25, 2017.

Somewhere in the range of 95,389 houses were sold, as per the information. Purchases made using solid advances were 35,993 in the month, up 35.4 percent from that time of the earlier year. 

The number of properties sold to foreign buyers in the month was, be that as it may, 1,386, down 5 percent contrasted with that time of a year ago.

Istanbul is the Most Favourite

In urban areas where outsiders most vigorously put resources into the land, Istanbul was the main territory with 441 deals in January. Istanbul was trailed by the Mediterranean territory of Antalya with 264 deals, Bursa with 137, and Ankara with 72.

Iraqi natives purchased 279 properties in Turkey in January, trailed by Saudis at 144 units, Kuwaitis at 115 units, Afghans at 107 units, and Russians at 60 units.