Turkey has introduced a new law that rids of VAT on all property purchases made by overseas investors.

The move has been welcomed by the property industry, as it is anticipating a large increase in transactions as overseas buyers take advantage of the new changes.

The law, which was passed on February 23rd, will also apply to those Turkish citizens who have been living and working overseas for six months or over.

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Nazmi Durbakayım, head of the Istanbul Constructors’ Association, commented:

“Tax exemption for foreigners who buy houses in Turkey is a very wise move. This will give a serious boost to the sector.”

The new law, which is similar to that of many other countries, will mean that foreign buyers won’t have to pay VAT on their first property, be it residential or commercial, as long as they purchase it with money raised overseas and don’t sell it on within 12 months.

The move follows a recent announcement that Turkey will grant citizenship to foreigners who buy property costing $1 million and don’t sell within three years.