The Turkish Government has abolished VAT on property purchases for foreign buyers, as the country attempts to attract more international investors.

The new law means that foreigners are exempt of VAT on the purchase of either a house or office in Turkey, with the condition that they make their acquisition payment in a foreign currency and do not sell their property for at least one year.

Passed on February 23rd of this year, the law also applies to those Turkish citizens who have been living and working overseas for six months or more. The change has been welcomed by the property industry, which is anticipating a large increase in transactions as overseas buyers take advantage of the more favourable buying conditions.

“Tax exemption for foreigners who buy houses in Turkey is a very wise move. This will give a serious boost to the sector,” said Nazmi Durbakayım, the head of the Istanbul Constructors’ Association, as quoted by state-run Anadolu Agency.