VAT Discount on Housing

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The government in Turkey has recently been reducing taxes in order to increase the purchasing power of the citizens and to fight inflation. In this struggle, it was time to regulate the VAT values ​​applied for real estate.

According to this regulation, the VAT rate on house deliveries will be rearranged, and it will be ensured that the purchased house is subject to VAT under the same conditions regardless of the unit square meter value of the land, and the VAT rate on these deliveries will be simplified. It is aimed to simplify and stabilize the ratio in residences up to 150 square meters.

According to the decision published in the Official Gazette, a single VAT rate of 8 percent will be applied for residences under 150 square meters from now on. On the other hand, large houses up to 150 square meters will be subject to 8 percent VAT, and the excess will be subject to 18 percent VAT. Thus, VAT, which is 18, 8 and 1 percent for luxury residences under 150 square meters, will be equalized at 8 percent.

The President's decision will enter into force as of April 1, 2022. It is expected that this new arrangement will lead to changes in house and land prices.

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