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Tax Benefits of Purchasing Property in Turkey for Citizens from Belgium & Other European Countries

Tax Benefits

Last Updated on August 22, 2023 by Aydoğan Aknar

Turkey has emerged as a popular destination for foreign property buyers, and Belgian investors have shown a keen interest. The country’s strategic location, rich cultural heritage, and booming economy make it an attractive choice for those looking to invest in real estate. Apart from the alluring lifestyle and diverse landscapes, there are several tax benefits that foreign buyers from Belgium and other European countries can enjoy when purchasing property in Turkey. Here are some of the possible benefits you can enjoy:

Exemption from Value-Added Tax (VAT)

One of the most significant tax advantages for foreign buyers from Belgium is the exemption from Value Added Tax (VAT) when purchasing residential properties. In Turkey, VAT is currently set at 8% for residential properties, which can be a substantial cost. However, foreign investors, including those from Belgium, are exempted from paying this tax, making property acquisition more affordable.

No Capital Gains Tax after 5 Years

Turkey offers a unique advantage to foreign buyers when it comes to capital gains tax. If a property is held for at least five years, any profit made from its sale will be exempt from capital gains tax. This incentive provides Belgian investors with an excellent opportunity to invest in real estate for the long term, knowing that they can benefit from a tax-free gain if they choose to sell the property after five years.

Lower Property Transfer Tax

When purchasing property in Turkey, foreign buyers, including Belgians, are subject to a lower property transfer tax. The property transfer tax is set at 4% for foreign investors, which is significantly lower than in their own country. This substantial difference in transfer tax rates can lead to significant savings for foreign buyers.

Double Taxation Avoidance Agreements

Turkey has established Double Taxation Avoidance Agreements (DTAs) with several countries, including Belgium. These agreements aim to prevent individuals from being taxed twice on the same income in both countries. For Belgian investors, this means they can avoid paying taxes on their property income in both Belgium and Turkey, ensuring a fair and transparent tax system.

Inheritance Tax Advantages

In Turkey, foreign buyers, including those from Belgium, are eligible for certain inheritance tax advantages. In the unfortunate event of the property owner’s passing, the inheritance tax rates are generally lower for foreign nationals compared to Turkish citizens. This aspect provides an added benefit for Belgian investors who wish to secure their property for future generations.

Citizenship by Investment Tax Advantages

Turkey offers a fast-track citizenship program for foreign investors who buy property worth at least $400,000. This can give you access to various benefits. Such as visa-free travel to more than 100 countries, free education and health care, and lower taxes.

For Belgian investors seeking a lucrative real estate investment opportunity, Turkey presents an appealing option. The tax benefits discussed above make buying property in Turkey a financially wise decision. From VAT exemptions and lower property transfer taxes to the avoidance of capital gains tax after five years. These tax incentives significantly contribute to the overall profitability and attractiveness of investing in Turkish real estate. Moreover, the Double Taxation Avoidance Agreements and inheritance tax benefits offer further peace of mind in handling tax matters. As the Turkish property market continues to grow, foreign buyers from Belgium and other European countries can confidently explore this exciting destination, secure in the knowledge that they can enjoy various tax benefits while experiencing the beauty and culture of Turkey.

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