Turkey Property VAT (KDV) Exemption Guide 2026: Article 13/i Rules & 3-Year Holding
2026
11 Sep
Under Article 13/i of Turkish VAT Law No. 3065, non-resident foreign investors are fully exempt from paying Value Added Tax (KDV), which typically ranges from 1% to 20% of the property's gross value, saving buyers tens of thousands of dollars on new residential and commercial real estate.
This comprehensive guide from the GARS Legal & Real Estate Department breaks down non-residency verification, foreign currency banking rules, and the 3-year holding restriction on the title deed (Tapu).
1. What is the KDV Exemption & Who Qualifies?
KDV is levied on the initial sale of new buildings delivered directly by developer companies. To attract foreign capital, the government waives this tax for non-resident foreign citizens and Turkish expatriates living abroad with valid work permits for over 6 months, provided the property is not sold within 3 years.
2. Mandatory Eligibility Criteria
| Criterion | 2026 Legal Rule |
|---|---|
| Buyer Status | Foreign national without permanent Turkish tax residency; staying less than 6 months in Turkey during the purchase year. |
| Property Type | First delivery (newly completed or off-plan) residential, commercial, or office units purchased directly from the constructor. |
| Payment Source | 100% paid in foreign currency transferred from a foreign bank account to Turkey, documented via official SWIFT receipts. |
| Holding Undertaking | A formal 3-year non-sale annotation placed onto the title deed (Tapu) by the Land Registry. |
3. Step-by-Step Exemption Application
- Obtain non-residency entry-exit logs from Migration Management (Göç İdaresi).
- Collect verified SWIFT international wire transfer proofs matching contract amounts.
- Submit file to the local Tax Administration (Vergi Dairesi) for the official Exemption Certificate (KDV Muafiyet Belgesi).
- Complete Tapu transfer with the 3-year non-disposal caveat registered.
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