When buying a car in Turkey, a person must pay three (3) types of taxes: Special Consumption Tax (SCT), Value Added Tax (VAT) and Motor Vehicle Tax (MTV). While the general rate of VAT is 20%, SCT is the most burdensome among these taxes. Since the right to buy a car in Turkey is not limited to Turkish citizens, this article will focus on car purchasing conditions and tax exemptions for non-Turkish citizens.
Tax-Free Automobile for Foreigners
The tax system in Turkey imposes certain taxes on people when purchasing a car. While there are taxpayers of these taxes, there are also those who can benefit from tax exemption. Cars purchased with tax exemption are called "blue plate vehicles" because they are registered with a blue plate. While the tax exemption for blue license plate vehicles is available for SCT and VAT, it does not cover tax types such as annual road tax or banderol tax.
Who Can Benefit?
It is possible to buy a "0" (zero) KM vehicle first hand from an authorized car dealer without paying SCT and VAT. However, only those who are called diplomatic members according to the Ministry of Customs and Trade can purchase such a vehicle.
This situation is stated as a taxpayer exemption in Article 6 of the Special Consumption Tax Law No. 4760;
“The goods included in the lists numbered (I), (II) and (III) annexed to this Law can be purchased for their own needs by the diplomatic representations, consulates and international organizations granted tax exemption by international agreements and their members with diplomatic rights, provided that it is reciprocal. The first acquisition, import or delivery to international organizations in Turkey within the framework of host government agreements or other agreements to which our country is a party, and the first acquisition by their non-citizens of the Republic of Turkey, who serve in their executive positions, for their own needs while they are on duty in Turkey, “Importation or delivery to them is exempt from tax.”
It is arranged as follows.
In addition, according to the international agreements to which Turkey is a party and Turkish Legislation, among those who can buy a tax-free car;
Those who have a 1st, 2nd, 3rd and 4th class Ministry of Foreign Affairs ID card (CD-B Plate) / (MA/MZ Plate).
Foreign personnel associated with NATO (MA/MZ Plate).
Foreign lecturers and students (except students for language education) (MA/MZ Plate).
Foreigners retired abroad and residing in Turkey (MA/MZ Plate).
Foreign athletes affiliated with federations (MA/MZ Plate).
Employees in Turkey of foreign media organizations located abroad (MA/MZ Plate).
Foreigners who have a work permit from the Ministry of Labor of the Republic of Turkey (MA/MZ Plate).
Foreign experts (MA/MZ Plate) temporarily located in various ministries within the scope of European Union programs and projects are counted.
The "MA" and "MZ" plates mentioned here are temporary entry cards, known as guest plates in Turkey. These tax-free vehicles, which are different from the tax-free vehicle purchase of diplomatic representatives, can only be used by themselves or their families during the person's stay in Turkey and provided that there is no change in their above-mentioned status.
Who Cannot Benefit?
Although the people who can benefit from the tax-free vehicle application are stated above; It is stated that only they and their families can benefit from this application, and third parties are excluded from the application.
Another group that will not benefit from the tax-free vehicle application is; They are people with dual citizenship who are citizens of another country in addition to Turkish citizenship. Since these people already have Turkish citizenship, they cannot benefit from this situation, which is only reserved for foreign citizens of certain statuses.
Even though they are not Turkish citizens, foreigners who do not have a residence permit and work permit in Turkey and who do not fall into the above categories cannot benefit from this tax-free car purchase.
How the Process Works
What are the Required Documents When Purchasing a Tax-Free Vehicle?
Purchasing vehicles defined as vehicles with blue license plates differs from the vehicle purchasing procedure of Turks.
For car purchases by foreigners, other than diplomatic persons, who can benefit from the tax-free vehicle application listed above;
The sale of a car between another foreign citizen who wants to buy the vehicle used by the foreign national takes place at the consulate of the seller.
Foreign citizens who directly benefit from tax exemption can purchase a vehicle with "0" (zero) KM in the presence of a notary.
In the first paragraph of the 3rd article of the Law No. 5086 on the Sale of Second-Hand Vehicles to Foreigners, which has been issued and is in force in Turkey for foreign nationals.