When you as a Dane look at a new apartment in Alanya, three letters quickly appear on the price list: KDV, the Turkish value-added tax. For many foreign buyers, that expense can be eliminated entirely. Turkey grants a full VAT exemption on the first sale of a newly built residential or commercial property to qualifying non-resident foreigners. This guide is written for those living in Denmark who need to understand what specific steps to take and what documentation is required to use the exemption in 2026.
Because the rules are nuanced and change frequently, you should always confirm your own situation with an authorized Turkish tax advisor or lawyer before signing. The following is a practical overview, not individual legal or tax advice.
What the Exemption Covers
The exemption stems from Article 13/i of Turkish VAT Law No. 3065. It means that an eligible foreign buyer does not have to pay VAT on the property purchase itself when the unit is brand-new and purchased directly from the developer. By comparison, Turkey's general VAT rate is 20 percent (raised from 18 percent on July 10, 2023), while the reduced rate is 10 percent. For residential properties, the applicable rate depends partly on net floor area, with 150 m² being the key threshold: homes up to 150 m² are typically taxed at 10 percent, while area exceeding that is taxed at 20 percent. A 1 percent rate still exists for certain special categories. Precisely because the rate structure is layered, it is well worth confirming what would apply to your exact property if you could not make use of the exemption.
Please note that the exemption applies only to VAT. The 4 percent title deed transfer fee (tapu harcı), calculated on the declared sales price, is not waived. You must budget for this on top of the purchase price.
Are You as a Danish Buyer Covered?
The short answer is yes, provided you are not tax-resident in Turkey. The exemption targets non-resident foreign individuals who have not resided in Turkey for more than six months during the relevant period, as well as foreign corporate entities without a permanent establishment in the country. Turkish citizens residing abroad with a work or residence permit who have been away for more than six months may also qualify.
Conversely, you are excluded if you hold a Turkish residence permit or are otherwise permanently settled in Turkey. If you live day-to-day in Denmark and are buying a holiday home or investment property in Alanya, the baseline assumption is that you satisfy the non-residency condition. However, residency tests involve factual, case-by-case determinations, so always have your status confirmed by an advisor before relying on the exemption.
The Four Conditions at a Glance
The table below brings together the core conditions as they apply in 2026:
| Condition | What It Means for You |
|---|---|
| Buyer | Non-resident foreigner (or Turkish citizen abroad 6+ months with permit); Turkish tax residents are excluded |
| Property | First sale of a brand-new residential or commercial unit purchased directly from a VAT-registered developer; resales are not covered |
| Payment | Entire purchase price brought into Turkey in foreign currency from abroad via bank transfer, documented, and paid prior to or at title deed transfer |
| Holding Period | At least 3 years; extended from 1 year under Law No. 7456 effective July 15, 2023 |
Payment Must Be Traceable from Abroad
This is the stage where Danish buyers must exercise the greatest care. To qualify for and maintain the exemption, the entire purchase price must be brought into Turkey in foreign currency from abroad through official banking channels. The payment must be verified and completed prior to or at the time of the title deed transfer.
In practice, this means wiring the funds from your Danish bank account and ensuring the transfer is formally logged as incoming foreign exchange. Retain all bank receipts demonstrating that the funds originated outside Turkey. This documentation is what the tax office and developer rely on when issuing an invoice without VAT. If, on the other hand, you pay in cash within Turkey or use funds already sitting in a Turkish bank account without clear foreign provenance, you risk forfeiting the exemption.
How the Process Unfolds
From the perspective of a Danish buyer, the process consists of a few clear steps:
- Confirm your status. Verify that you qualify as a non-resident and are not a Turkish tax resident, ideally alongside an authorized Turkish tax advisor or attorney.
- Select a qualifying property. It must be a primary sale of a newly built residential or commercial unit from a VAT-registered developer, not a resale.
- Gather required documentation. Passport with a notarized Turkish translation, a Turkish tax identification number, proof of non-residency (entry and exit records plus proof of your Danish residential address), and relevant corporate/property documents from the developer.
- Apply for the VAT exemption certificate at the relevant tax office before finalizing the purchase.
- Transfer the full amount in foreign currency from abroad via bank transfer and keep all transfer receipts.
- Complete the title transfer (tapu). The developer issues a VAT-free invoice referencing Article 13/i, and you pay the separate 4 percent title deed transfer fee.
The Three-Year Rule Is the Critical Hurdle
A detail frequently misstated in older articles is the mandatory holding period. Previously set at one year, it was extended to a minimum of three years by Law No. 7456, effective July 15, 2023. As a Danish buyer in 2026, you must therefore hold the property for at least three full years to retain the exemption.
If you sell earlier, the exempted VAT becomes immediately due along with statutory interest penalties. The land registry also places an annotation on the title deed so that the property cannot be transferred without settling this liability. If you anticipate a rapid resale, treat the exemption as a contingent saving rather than an unconditional benefit.
Summary
The VAT exemption offers substantial savings for Danish buyers, but it depends on three main pillars: you must be non-resident, the unit must be a brand-new primary sale directly from a developer, and the entire purchase price must be documented as transferred in foreign currency from abroad before title deed conveyance. Added to this are the three-year holding requirement and the standard 4 percent transfer tax. Given that tax rules change and procedural sub-requirements can vary, always have your planned transaction vetted by an authorized Turkish tax specialist or lawyer before entering into binding agreements.