Useful Information
Türkiye has become an increasingly popular destination for foreign investment, offering a range of attractive incentives and exemptions to encourage international investors. With its strategic location bridging Europe and Asia, a rapidly growing economy, and an investor-friendly environment, Türkiye provides significant opportunities in various sectors, especially real estate, manufacturing, and technology. Foreign investors can take advantage of various tax breaks, incentives, and exemptions that make doing business in Türkiye even more appealing. In this blog, we’ll explore the key incentives and exemptions available to foreign investors in Türkiye, helping you understand how to maximize the potential of your investments in this dynamic market.
Foreigners who acquire property in Turkey can benefit from several tax advantages that make property investment an attractive option. One of the main benefits is the exemption from certain taxes that apply to Turkish nationals, such as the inheritance and succession tax for properties acquired through legal inheritance. Additionally, foreign investors are subject to the same property tax rates as Turkish citizens, which are relatively low compared to other European countries. Foreign buyers also benefit from favorable capital gains tax exemptions: if the property is held for more than five years, the capital gains from its sale are tax-free. These tax incentives make real estate investment in Turkey an even more lucrative opportunity for foreign investors looking to maximize their returns.
One of the most compelling incentives for foreign investors in Turkey is the opportunity to obtain Turkish citizenship through investment. By purchasing property worth at least $400,000 and committing to hold the property for a minimum of three years, investors and their families can qualify for Turkish citizenship. This provides numerous benefits, including access to Turkey's healthcare and education systems, as well as visa-free travel to several countries. In addition to citizenship, real estate investors can enjoy tax advantages, such as exemptions from inheritance taxes and the opportunity to benefit from Turkey's relatively low capital gains tax rates on properties held for over five years. These combined incentives make Turkey an increasingly attractive option for foreign investors seeking both personal and financial advantages.
Türkiye has signed Double Taxation Avoidance Agreements (DTAs) with numerous countries to prevent investors from being taxed twice on the same income. These agreements ensure that foreign investors are not subject to double taxation on income generated from property investments or other business activities in Türkiye. Under these agreements, income such as rental earnings, dividends, or capital gains is only taxed in one country, either in Türkiye or the investor's home country, depending on the terms of the agreement. This offers significant relief for foreign investors, making Tu an even more attractive destination for investment by minimizing tax liabilities and promoting international business.
