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?

     Only the registered foreigner, their spouse, and children are allowed to drive the car. You can’t rent it out or lend to someone else. Also it is forbidden to use this car for any commercial purposes. 

     Use Period and Status Dependency

     You can only use the vehicle as long as your permit (e.g., work or student) is valid. Once your status ends, you must export the car or pay taxes. Typically, the car may remain in Turkey up to the validity of your residency permit (often up to two years), but once your legal status ends you must either remove the car or pay the taxes.

     No Resale to Turkish Citizens

     You cannot sell a tax-free car to a Turkish buyer or just by taking off its plates. The only legal way to resell it is to another foreigner, following the official process. If someone who isn’t allowed to buy the car gets it anyway, Customs will cancel the tax exemption and charge back taxes on the sale.

     Export Requirement

     Before leaving Turkey, you must either export the car or transfer it to another eligible foreigner. Only after this step will your deposit be refunded. When you’re ready to leave (or if you no longer qualify), the car must usually be taken out of the country. You then apply for customs clearance to get your deposit back. If the car stays in Turkey, Customs will deduct the unpaid taxes (SCT and VAT) and any penalties from your deposit.

     Annual Vehicle Fees

     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 and remain your responsibility. While they are relatively small, they are not covered under the tax-free scheme.

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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