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Should I pay in Usd or Tl when buying a property in Turkey?

Posted in Turkey forum

I am purchasing an investment property from a developer in Istanbul. There is no VAT currently that foreigners have to pay IF paid in their currency. What is the alternative if foreigners made the purchase in TL? is it 1% or 8% or 18%?
I'm trying to find out if I resell the property in a year or 2 years and it happened to be in TL, will it still make sense if I bought it in USD to avoid VAT... What do you recommend?

  • Go to Basma Sung's profile

    posted by  in Turkey forum 

    Thank you for your reply Darren.

  • Darren Holloway

    posted by  in Turkey forum 

    Hi I think it makes sense to pay in usd if this means you would avoid paying vat on the property. I regards to reselling it really only makes a difference if the exchange rate is lower then when you purchase the property. As the exchange rate at the moment is very high you would get a very good deal on your purchase but you would need to make sure it is at a similar level when you wish to sell or keep the property until such time as the tourist start to come back this means property prices would have gone up.
    Hope this helps

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