Law No. 7577: VAT exemption in expropriation transfers
The law includes certain real estate transfers to the state and public legal entities that carry out the expropriation in the VAT exemption.
Law No. 7577 introduced a VAT exemption regarding the transfer of immovable properties to the expropriating state and public legal entities within the scope of the Expropriation Law. The relevant provision came into force at the beginning of the second month following the publication of the law.
This framework does not mean that every real estate sale made with the public is within the scope of the exception. It is important that the transfer takes place within the scope of expropriation and that the buyer has the qualifications specified in the provision.
In business records, the nature of the real estate, transfer documents and the date of the transaction should be examined together. The effect of the exemption on the document order and taxes on relevant purchases should also be evaluated. This content summarizes the relevant amendment of the law; It is not a general tax-free statement covering all real estate transactions.
Automatic translation. If in doubt, review the Turkish text and the official source.