Erdal Nuhbasa – Law and Consulting Firm – Legal Services
Erdal Nuhbasa – Law and Consulting Firm – Legal Services
Buying a car in Turkey usually comes with significant tax burdens — including Special Consumption Tax (ÖTV) and Value Added Tax (KDV) — which can sometimes double or triple the base price of a vehicle. However, foreigners who meet certain legal criteria have a unique opportunity: they can purchase tax-free vehicles, often saving hundreds of thousands of Turkish Lira.
This exemption is achieved under the Temporary Admission Regime (Geçici İthalat Rejimi) of the Turkish Customs Law. The vehicle is exempt from ÖTV and KDV because it is not placed into free circulation. These vehicles are issued a special license plate from the MA/MZ series (often referred to as the Blue Plate).
Owners of MA/MZ-plated vehicles must pay a biannual vehicle tax (motorlu taşıtlar vergisi, or bandrol) at a bank or tax office. The tax amount depends on the vehicle’s model, year, and engine size, with payments due in January and July each year.
Except for diplomatic sales, foreigners cannot purchase brand-new vehicles directly from Turkish dealerships without KDV or OTV. The MA/MZ system is not a dealership sales exemption, but a customs regime based on temporary importation.
In practice, tax-free vehicles are obtained either by importing a vehicle from abroad under the Temporary Admission Regime or by acquiring an already MA/MZ-plated vehicle from another eligible foreigner.
Eligible groups include:
Individuals assigned to embassies or consulates, along with their family members, may purchase tax-free vehicles under diplomatic arrangements.
Staff members of NATO and other international organizations residing in Turkey are also eligible.
Expats legally working in Turkey with valid work permits can apply for a tax-free car under temporary importation rules. Not all foreigners with a work permit is eligible for this excise tax (ÖTV) and value-added tax (KDV) exemption. This is an exceptional right granted to foreign nationals who meet specific status and conditions, even if they hold a work permit.
Foreign nationals enrolled in full-time university education or working as lecturers at Turkish universities can qualify.
Retired foreign nationals residing long-term in Turkey may benefit from tax exemptions in certain cases.
Registered journalists and athletes working under official Turkish credentials are included in the eligible groups.
Owning a tax-free vehicle is not the same as buying a normal car from a dealership. Vehicles must remain under the Temporary Admission Regime, and specific documents are required.
If you’re unsure whether you meet all the criteria or need help gathering specific documents for your situation, we’re here to assist. Legal requirements can vary depending on your residency status, profession, and type of permit. For a more detailed list, please contact me! Our team will make sure you have everything in place before starting the process.
While owning a tax-free car in Turkey brings financial advantages, there are strict rules that must be followed:
MA-MZ plated tax-exempt vehicles can, as a rule, only be driven by the foreign individual under whose name the vehicle is registered. The right to use such a vehicle tax-free in Türkiye is a personal privilege granted to the foreigner.
MA-MZ plated vehicles are governed by the duration of the owner’s work or residence permit. Unlike vehicles brought under tourist facilities (which typically have a maximum 730-day limit), the right to use an MA/MZ plated car can be extended indefinitely as long as the owner’s legal status (residence/work permit, student status, etc.) in Turkey remains valid and is appropriately extended at the customs office.
You cannot sell a tax-exempt vehicle to a Turkish buyer, nor can you simply remove the plates and sell it as a regular car. The only legal way to sell the vehicle is by following the official process and transferring it to another eligible foreigner. If someone who is not allowed to buy the vehicle still purchases it, customs will revoke the tax exemption and reclaim all applicable taxes (Special Consumption Tax and VAT).
Do I Need to Sell the Car Before Leaving Türkiye?
Before leaving Türkiye, you must either export the vehicle or legally transfer it to another eligible foreigner. Only after this step will your security deposit be refunded. When you are ready to leave (or no longer meet the eligibility criteria), the vehicle typically must be taken out of Türkiye. After the export, you can apply to customs for your deposit refund. If the vehicle remains in Türkiye, unpaid taxes (SCT and VAT) and penalties will be deducted from your deposit.
What are the Annual Vehicle Costs?
Even with a tax-free car, you must still pay for:
These costs are separate from the tax exemption itself and remain your responsibility. While relatively minor, they are not covered under the tax exemption program.
If you’re a foreign resident in Turkey and are interested in buying a tax-free vehicle, don’t take chances with guesswork or misinformation. Let our legal team guide you from start to finish.
📞 Erdal Nuhbasa Law and Consulting Firm
📍 Kartaltepe Mah. Bahçesaray Sok. No:19/3 Bakırköy, Istanbul, Turkey
📧 erdalnuhbasa@hotmail.com
🌐 www.erdalnuhbasa.com
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