Real estate sales to foreigners to be supported

Interim Economy Minister Nihat Zeybekci announced that his ministry is working to include real estate sales to foreigners among services for foreign currency earnings.

Real estate sales to foreigners are expected to reach around $5 billion this year and $10 billion in 2016. Speaking at a Housing Society (KONUTDER) meeting, Zeybekci underlined that foreign exchange earnings are one of Turkey's most crucial exports and an important part of this revenue is obtained from property sales. He added that the Ministry of Economy has been focusing on this issue, and while there are inconsistencies with the regulations of the Finance Ministry, they will soon resolve these issues.

This year around 20,000 properties are expected to be sold to foreigners. Zeybekci noted that since the sector brings in foreign currencies to Turkey, it should at least partly benefit from export incentives. "This can be deemed as an export. It is something that brings in foreign currencies to Turkey. Therefore, this sector should also benefit from certain export incentives. Even though we support promotions, exhibitions and foreign office expenses, such sales should be included in the foreign currency earning services," said Zeybekci. He added that while such sales cannot be solely categorized as commodity exports, his ministry would provide all the support it can.

The Economy Minister noted that various problems in the real estate sector were inconsistent tax rates and other indirect taxes. He further underlined that various tourism sectors, such as health tourism or shopping tourism, should also be deemed as foreign currency earning services, and the regulations should be reevaluated accordingly.