Kdv

If you’re planning to purchase a property in Turkey, it’s important to understand the various taxes and fees associated with the transaction. One such tax is KDV, or Value Added Tax, which applies to the sale and purchase of real estate in Turkey.

KDV rates for real estate transactions in Turkey can vary depending on the type of property being sold and the timing of the sale. Prior to September 2018, KDV rates for real estate transactions were either 1% or 8%. However, since then, the standard KDV rate has been increased to 18% for most real estate transactions.

It’s important to note that there are some exemptions to the KDV tax for certain types of properties, such as first hand properties for Foreign Direct Investors. In general, second-hand properties are exempt from KDV tax, as the tax has already been paid when the property was originally purchased from the developer or builder. However, if the seller is a real estate company or developer, KDV tax may still apply. It’s also worth noting that KDV may be applicable in certain cases where a property is sold before it is completed or handed over to the buyer.

Please check our article about how to get VAT EXEMPTION DOCUMENT for FOREIGN DIRECT INVESTORS.

In conclusion, KDV is an important tax to consider when purchasing real estate in Turkey. While the standard rate for most transactions is currently 18%, there are exemptions for Foreign Direct Investors in their First Hand purchases.. It’s important to work with a trusted real estate agent or lawyer to ensure that you fully understand your tax obligations and responsibilities when purchasing real estate in Turkey. For all your real estate needs in Istanbul, Estates Istanbul can provide you with expert guidance and support throughout the purchasing process.