Erdal Nuhbasa – Law and Consulting Firm – Legal Services

ERDAL NUHBASA

LAW AND CONSULTING FIRM

tax-free

How to Buy a Tax-Free Car in Turkey as a Foreigner?

     Buying a car in Turkey usually comes with significant tax burdens — including Special Consumption Tax (SCT) and Value Added Tax (VAT) — 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.

     A vehicle registered to foreign nationals is issued a license plate from the MA/MZ. Owners of MA/MZ-plated vehicles must pay a biannual vehicle tax (motorlu taşıtlar vergisi) 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.

     At Erdal Nuhbasa Law and Consulting Firm, we help foreigners who qualify buy tax-free cars in Turkey by guiding them through all the legal steps and paperwork — making the process smooth, safe, and stress-free.

Who Can Buy a Tax-Free Car in Turkey?

     Not every foreigner is eligible to buy a tax-free vehicle. The exemption is part of a legal framework designed to benefit individuals who are in Turkey temporarily under specific circumstances. Eligible groups include:

  • Foreign Diplomats and Consular Staff

Individuals assigned to embassies or consulates, along with their family members, may purchase tax-free vehicles under diplomatic arrangements.

  • NATO and International Organization Employees

Staff members of NATO and other international organizations residing in Turkey are also eligible. 

  • Foreigners with Work Permits

Expats legally working in Turkey with valid work permits can apply for a tax-free car under temporary importation rules. 

  • University Students and Academic Staff

Foreign nationals enrolled in full-time university education or working as lecturers at Turkish universities can qualify. 

  • Foreign Retirees

Retired foreign nationals residing long-term in Turkey may benefit from tax exemptions in certain cases. 

  • Foreign Journalists and Athletes

Registered journalists and athletes working under official Turkish credentials are included in the eligible groups.

What Are the Legal Requirements and Documents Needed?

     Buying a tax-free car in Turkey involves more steps than a regular purchase. The process that foreigners will follow when buying a tax-free car varies according to the nature of the vehicle they buy. 

  • Foreign citizens who want to buy a 0 km vehicle can buy the vehicle directly in the notary public. 
  • Foreign citizens who want a secondhand vehicle used by a foreign citizen must complete the sale process at the consulate of the seller. 

     For a smooth and legally valid car sale transaction in Turkey (especially involving foreign nationals and tax exemptions), the following documents are typically required:

     Required Documents for Used Car Sales Between Foreigners

  • Valid Passports and Residency Permits or Work Permit
  • Vehicle Registration Certificate (Trafik Tescil Belgesi)
  • Notarized Sales Contract (If it is signed at a consulate, the consulate may attest it)
  • Motor Vehicle Insurance (Traffic Insurance is must but “Kasko” is optional but recommended)

     Required Documents for “0 KM” New Car Purchases 

  • Notarized declaration of eligibility (For proving tax-exempt status)
  • Vehicle purchase invoice from an authorized dealer (showing tax-exempt sale)
  • Custom Clearance Document (for tax-free registration) 
  • Security Deposit Receipt (If required by customs, it is decided case-by-case)
  • Letter of Undertaking (committing not to sell the car illegally within tax-free period)   

     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.

Key Differences Used Car vs. Tax-Free New Cars

Aspect Used Car (MA/MZ Plates) New-Car
Taxes
Already tax-exempt (VAT and SCT were waived by original owner)
Tax-exempt at purchase (no VAT and SCT)
License Plates
MA/MZ plates remain with the car
Issued MA/MZ plates upon registration
Deposit
Not required
Required for non-diplomats
Resale Restrictions
Can be sold only to another eligible foreigner
Same
Paperwork
Less paperwork
Requires full customs and registration approval
tax-free auto

Rules, Restrictions, and Responsibilities

While owning a tax-free car in Turkey brings financial advantages, there are strict rules that must be followed:

     Who Can Drive It?

     MA-MZ plated (foreign plated) tax-free 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. You cannot rent out or lend the car to anyone else. Additionally, using this vehicle for any commercial purpose is strictly prohibited. 

     How Long Can the Tax-Free Vehicle Be Used?

     MA-MZ plated (foreign plated) vehicles can be used in Türkiye for as long as the valid residence permit or work permit remains active. Once the residence or work permit expires, the vehicle must either be exported out of Türkiye or surrendered to customs. A vehicle can stay in Türkiye for a maximum of 2 consecutive years (730 days). However, as long as the residence permit is extended, it is possible to apply for an extension from customs to continue using the vehicle.

     Can My Foreign Spouse Buy a Tax-Free Vehicle?

     If your spouse is a foreign national and falls into one of the exemption categories mentioned above, they have the right to purchase an MA-MZ plated tax-free vehicle. Only your spouse is legally allowed to drive the car; as a Turkish citizen, you are not permitted to drive this vehicle.

     Can It Be Sold to Turkish Citizens?

     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: 

  • Compulsory vehicle insurance
  • Regular registration fees
  • Biannual ‘bandrol’ tax

     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.

Why work with Erdal Nuhbasa Law and Consulting Firm?

     At Erdal Nuhbasa Law and Consulting Firm, we provide comprehensive legal services to support foreign residents through every step of the tax-free car purchase process.

     Our Services Include:

  ✔ Check if you qualify – We’ll see if you meet the residency or assignment requirements.

  ✔ Handle paperwork & translations – We prepare and translate all the legal documents you need.

  ✔ Deal with officials for you – We represent you at notaries, consulates, customs, and registration offices.

  ✔ Work with car dealers & importers – We coordinate with authorized sellers to make things smoother.

  ✔ Help with deposits & refunds – We assist with security deposits and getting your money back.

  ✔ Legal advice for rules & resale – We guide you on staying compliant, selling, or exporting your car later.

     With our expert legal support, you can enjoy the benefits of owning a high-value vehicle in Turkey — without paying excessive taxes or navigating red tape alone.

Contact Us Today

       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

     Save more. Drive freely. Stay compliant.

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