Tax Exemption for Foreigners

According to subparagraph i of the 13th article of the Value Added Tax Law, "On the condition that it is applied on the first delivery of the buildings constructed as houses or workplaces and the cost is brought to Türkiye in foreign currency, except for those specified in the second paragraph of the first paragraph of the 3rd article of the Income Tax Law, or Turkish citizens who have been living abroad for more than six months by obtaining a residence permit, foreign real persons who have not settled in Türkiye, and institutions whose legal and business center is not in Türkiye and which do not earn income in Türkiye through a workplace or permanent representative or workplace deliveries are exempt from tax." The determinations regarding the application of the said exemption are in Article II/B.12 of VATGIC (Value Added Tax General Implementation Communiqué). Made in part.
Recipients who will benefit from the exemption must have the conditions that require being a non-resident in accordance with the income and corporate tax laws. Therefore, it can be said that the purpose of the exemption is to encourage foreign capital to invest in Real Estate in Türkiye.