The short answer: if you live outside Turkey and buy a new home or office directly from the developer, paying with foreign currency brought from abroad, you can buy it without VAT, usually a saving of 10% or 20% of the price. Keep the property for three years, or the VAT becomes payable when you sell.
The exemption is set out in Article 13/(i) of the Turkish VAT Law, and it is still in force in 2026.
See what it saves you: our closing costs calculator shows your costs of buying with and without VAT.
At a glance
| Question | 2026 rule |
|---|---|
| Who | Foreigners not living in Turkey; Turkish citizens living abroad |
| Which property | A new home or workplace, bought from the developer |
| How you pay | In foreign currency brought from abroad |
| When you pay | At least 50% before the invoice, the rest within a year |
| How long you keep it | 3 years |
| What you save | The VAT: usually 10% or 20% of the price |
Who qualifies
- Foreign nationals who are not settled in Turkey. You count as settled if your home is here or you stay in Turkey for more than six months in a row in a calendar year. A residence permit is not the test itself, but if you actually live in Istanbul, expect to be refused.
- Turkish citizens living abroad who got a foreign work or residence permit at least six months before delivery and have spent at least six months abroad since then.
- Foreign companies with no office or permanent representative in Turkey.
You prove your status with a certificate from the tax office where the property is. Turkish citizens also need one from their consulate.
Which properties qualify
- Homes and workplaces: apartments, villas, offices and shops. Land does not qualify.
- The first sale only, by the developer that built the property. A unit bought from an investor, or from a landowner who received it in exchange for the land, does not qualify. A resale by a private owner carries no VAT anyway.
- Off-plan is fine. You can sign and pay during construction. The exemption applies at delivery, once the unit is finished and handed over and the title deed is transferred.
How you pay
The price must be paid in foreign currency brought into Turkey from abroad:
- At least 50% before the date of the developer's invoice, and the rest within one year.
- The money can be converted into lira at a Turkish bank and paid to the developer. Keep the bank's receipt.
- The proof is the bank transfer receipt, a bank letter for a foreign card payment, or the customs form if you brought cash.
- Lira already in a Turkish account does not count, and nor does currency brought in before 8 March 2017.
- A family member may send the money for you if the receipt names you and the property.
The three-year rule
If you sell within three years of delivery, you first pay the VAT that was not charged, plus late-payment interest. There is no extra penalty, but the title deed carries a note and the land registry will not transfer the property without a letter from the tax office. After three years you can sell freely.
If the conditions were never met (for example, the money did not come from abroad), the tax office can claim the VAT plus a tax-loss penalty and interest, and the buyer is liable together with the developer. Get the paperwork right before the invoice.
How it works in practice
- Check the developer. Ask which VAT rate applies and confirm they will invoice under Article 13/(i).
- Send the money from abroad in foreign currency, and keep every receipt naming you and the unit.
- Get your non-residence certificate from the tax office.
- The developer invoices without VAT, citing the exemption, and informs the land registry.
- The title deed is transferred with the three-year note.
Can I combine it with citizenship?
Nothing in the rules stops you. Both require payment in foreign currency and keeping the property for three years, so the conditions fit together. Check your own case with us or your lawyer before you pay, and see our citizenship guide for the citizenship rules.
Related guides
- Closing Costs Calculator: all your costs of buying, with or without VAT
- Property Taxes in Turkey: every tax from buying to selling
- Buying Property in Turkey: the purchase, step by step
- Turkish Citizenship by Real Estate Investment
This guide is general information, not tax advice. The rules are as of September 2026. Confirm your own case with a Turkish tax adviser before you buy.
Frequently asked questions
6 questions foreign buyers ask us most, grouped by topic.
The basics
Do foreigners pay VAT when buying property in Turkey?
Only on a new property bought from the developer, at 1%, 10% or 20% of the price. A resale bought from a private owner carries no VAT. Buyers who live abroad and meet the conditions can buy a new property without VAT.
How much does the VAT exemption save?
The whole VAT on the price. For most new homes in Istanbul that is 10% of the price up to 150 m² of net area and 20% above it; offices and shops pay 20%.
Who qualifies
Can I use the exemption if I have a Turkish residence permit?
The permit itself is not the test; where you live is. If your home is in Turkey, or you stay here for more than six months in a row in a calendar year, the tax office treats you as settled in Turkey and you do not qualify.
Does the exemption work for off-plan purchases?
Yes. You can sign and pay while the building is under construction. The exemption is applied at delivery, when the unit is finished and handed over and the title deed is transferred to you.
After you buy
What happens if I sell within three years?
Before the sale you pay the VAT that was not charged, plus late-payment interest. There is no extra penalty, but the land registry will not transfer the property without a letter from the tax office.
Can I buy more than one property without VAT?
Yes. Every new home or workplace that meets the conditions can be bought without VAT.
