10 Foreıgn buyer ıncentıves
1: Foreigners do pay VAT on their first home purchase. The same applies for their first car purchase. The exemption is valid for foreigners who do not reside in Turkey, foreign institutions whose business center is not located in Turkey, and Turkish citizens who live aboard for more than 6 months.
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2: A VAT tax of up to 18% is fully exempt on new construction and 1% on resale.
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3: Effective February 23, 2023, the Turkey Central Bank has lowered its interest rates by 0.5% percentage points, from 9% to an annual 8.5%.
4: If you invest in hard currencies (USD and Euro), you will not be faced with currency risks. Properties are purchased and sold in hard currency.
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5: There is no dollar devaluation in a Turkish bank. Turkey will essentially pay you to bank there. Turkey introduced a new measure to help protect foreign investors and Turkish corporations that deposit funds in lira and stand to lose against the US dollar. The implemented policy states that the Turkish banks will automatically compensate and protect your dollar currency within their set 3, 6, 9, and 12-month Turkish lira term deposits. Every day, the Turkish central bank will publish the US dollar buying rate at 11 a.m. Istanbul time, and when your term deposit matures, the central bank will compare interest rates. If in the event the lira goes down and you stand to lose against the dollar, the central bank will provide the extra funds you lose to your bank.
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6: All rental income is in hard currency.
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7: Low Property Taxes: The amount is based on the minimum value amount, which is determined by the municipality based on the area or neighbourhood. Yearly assessments are assets based on square meters. The percentage ratio against the sale price is determined by the minimum square value in that neighbourhood. Example: A $2 million US villa in Yalakavik will cost $2,000 in annual property taxes.
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8: Monthly maintenance fees are low and do not increase year over year. An example of what monthly maintenance fees include are 24-hour security, front concierge, buggy and shuttle services, gym and fitness facilities, pools, and more. For example, a 3B villa approx. 350 M2 will cost around $800 USD per month.
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9: If you sell your property after 5 years, you are not subject to paying capital gains tax.
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10: Investors are not double taxed on rental income. Turkey has a prohibition on double taxation for over 180 countries. For the first 6 months as a non-resident in Turkey, you will only be taxed for the income you generate in Turkey. Turkey will not ask for your international income. However, if you stay in Turkey for more than 6 months as a full-tax resident, your overall international income tax owed will be reduced or credited from the amount you already paid in Turkey. The balance is subject to tax in your foreign country. You are not doubly taxed. You are taxed separately. Certain taxes are exempted on some tax items based on the recommendations of a tax consultant.
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