Historical advantages are really helping the Turkish real estate market. The Turkish government is pursuing another tax reform by lifting the value-added tax on the sales of real estate for oversea buyers and legal entities. This is happening as part of optimistic reform initiatives, all directed to attract more foreign investors to the country.
This new reform introduced into the Turkish tax regime is the latest in a series of government moves. They are really working hard to try and attract foreign investors and so the Turkish real estate market are really seeing the benefits of it.
The moves include the termination of the reciprocity criterion in the buying of property by foreigners in Turkey – something that affected the housing market for a long time. However, the biggest benefit is the abolition of VAT to foreign nationals and foreign legal entities on their purchases of real estate – for housing and business purposes. This is great property news for overseas buyers and will only bring around good luck to the Turkish real estate market.
This benefit will correspond to a price discount as big as 18% on the base value of purchased real estate exceeding a particular size. This will then provide foreign investors and legal entities with a very good advantage over their Turkish counterparts in their investment undertakings in Turkey.
Turkey feels very strongly about incentivising real estate buyers to their country. It grows their economy and attracts tourists to travel there and to potentially live there in the future. The construction sector is certainly the backbone of the larger economy for their real estate market.
The Turkish government wants to turn the colossal city into a regional financial hub, attracting international customers and investors to their ever-growing country. All cities across Turkey are expecting to attract more and more foreign investors, all who are willing to place their money into the Turkish real estate market.
It is undoubtedly emerging as a unique and popular place that is seen as attractive and thriving in the real estate market. This property news may come as a surprise for some, but for many, they are excited and anticipating the Turkish real estate market with all the fantastic benefits that come with it.
Written by Gemma Smith