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The New Changes In Housing VAT Rate In Türkiye:

According to the changes that VAT rates had on housing; the houses up to 150 m² the rates will be 8%. The part that exceeds 150 m² will be applied an 18% VAT rate. Before these changes, houses that are above 150 m² had 18% VAT.

 

The housing VAT rate had undergone a series of new changes:

Housing in Turkiye, The residences which have a 150 m² net usage area used to have an 18% VAT rate and for the ones below 150m², the rate was 1%. Now with the changes; for houses that are above 150 m², there will be a tax reduction. For the ones below 150 m², there will be partial discounts and also partial raises.

According to the changes that VAT rates had on housing; the houses up to 150 square meters the rates will be 8%. The part that exceeds 150 square meters will be applied an 18% VAT rate. Before these changes, houses that are above 150 square meters had 18% VAT.

Housing in Turkiye, Depending on the new decisions, in order to reduce the costs in building trade the VAT rates in land sales also had a reduction and became 8%.

 

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Prices are expected to fall after value-added tax cuts!

 

  • Housing in Turkiye, The new VAT rates for houses under 150 m²;

Whether it is in the Metropolis or it is luxury the housing VAT rates will be 8% for square meters under 150.

  •  The houses that will have tax reduction;

If the land price per square meter is above 2.000TL the luxury houses built on it will have 8% VAT. Instead, they used to have 18%.

  • Housing in Turkiye, The VAT rates that will have increase;

If the lands price per square meter is below 1.000TL the luxury houses that are built upon it will have 8% VAT instead of 1%.

The new VAT rates will be effectuated on April 1st, 2022 according to President’s decision.

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