The process of regulating value added tax (VAT)-free real estate sales to foreigners has reached its final stages with the submittal of the communiqué to the Turkish Prime Ministry last week expected to be published next week.
Meanwhile, expecting a surge in sales to foreigners, representatives from Turkey's real estate sector are travelling abroad to promote the incentives of the VAT-free offer. According to the communiqu sent to the Prime Ministry, Turkish citizens living abroad and foreigners will not be required to pay VAT on their first real estate purchase, whether residential or commercial, under the condition that the price of the immovable property is paid in foreign currency from abroad and that the property is not sold within one year of purchase. With this step, real estate sales to foreigners which are currently worth roughly $4.5 billion, are expected to reach at least $10 billion.
Chairman of the Housing Development and Investors' Association (KONUTDER) Altan Elmas said that the fact that Turkish citizens living abroad will benefit from the VAT exemption is expected to have a serious impact on real estate sales in Turkey. Underlining that foreign sales remain as KONUTDER's priority, Chairman Elmas said the association will establish a committee to promote Turkey abroad, adding that they have already begun to promote the incentives offered by the Turkish government.
Emlak Konut GYO General Manager Murat Kurum said that Emlak Konut has launched promotional campaigns and set up offices abroad where contractors can come and unveil their projects.
Nothing that they will mainly concentrate on countries with large Turkish diaspora, Kurum said that Emlak Konut has already begun mobilizing efforts to establish offices in various countries including Germany, France, the Netherlands, Qatar, Dubai and Saudi Arabia.