The Decision of the Council of Ministers numbered 2017/9759 published in the official gazette on 03/02/2017 contains some important changes in connection to the ratios of certain taxes.
– Accordingly, the stamp tax duty applicable to (i) preliminary property sales contracts which need to be drawn up in official form (gayrimenkul satış vaadi sözleşmeleri) and (ii) prepaid house sales contracts which are drawn up within the context of the Consumer Protection Law, has been decreased to “0” and consequently no stamp tax shall be payable on these contracts.
Under Turkish Law, the agreements of “undertaking to sell” for properties should be drawn up in the official form in order to be valid. Despite this provision, an important number of agreements were being executed in unofficial form (i.e. not before Notary). We believe that this change will encourage the execution of the agreements of “undertaking to sell” in official form and registration of the same before Land Registry, resulting in better protection of the rights of the purchasers.
– Furthermore, the special consumption tax (ÖTV) shall be applied AS “0” to yachts, cruisers, boats and excursion ships and the VAT (KDV) shall be applied as %1 to the same.
It is expected that this amendment will support the purchase and registration of yachts with Turkish Registry and boost the relevant market in Turkey.