Utkucan Çelik: It Will Greatly Benefit Both Homebuyers and Homebuilders
"The VAT reductions and land registry fee adjustment will greatly benefit both homebuyers and homebuilders. Investment in real estate, seen by investors as a safe haven, will accelerate."
— Utkucan ÇELİK — Güçlü Group Board MemberUtkucan Çelik: It will greatly benefit both homebuyers and homebuilders
The VAT decision awaited by the real-estate sector and homebuyers has been issued by the Council of Ministers. Under the decision published in the Official Gazette, for six months VAT on residential property handovers will be 8% instead of 18%. Homes previously subject to the 18% rate will receive the lower rate during this period.
7 May 2018, Monday, 15:52
The VAT decision awaited by the real-estate sector and homebuyers has been issued by the Council of Ministers. Under the decision published in the Official Gazette, for six months VAT on residential property handovers will be 8% instead of 18%.
The Council of Ministers has issued the VAT decision awaited by the real-estate sector and homebuyers. Under the decision published in the Official Gazette, VAT on residential-property handovers will be 8% instead of 18% for six months. The homes subject to the 18% VAT rate are primarily those with a net area of 150 square metres or more. During the same period, the land registry fee will fall from 4% to 3%. Under these decisions, VAT on a home worth TRY 500,000 will fall from TRY 90,000 to TRY 40,000.
Güçlü İnşaat Board Member Utkucan Çelik commented on the decision: “The Council of Ministers has reduced taxes associated with property purchase and sale costs for six months. Under this measure, VAT on home handovers subject to the 18% rate has been reduced to 8% until 31 October. The land registry fee has also been reduced from 4% to 3% for the same period. We believe these changes will greatly benefit both homebuyers and homebuilders. First of all, they will encourage people whose demand has been on hold to make a purchase. Investment will accelerate in the real-estate sector, which investors regard as a safe haven. In addition, the land registry fee is an important source of government revenue from real-estate transactions; with this change, the sector, the state and homebuyers will all benefit. We believe that the resulting increase in home sales will also accelerate new investment in the sector.”