The Union of Turkish Public Notaries (“Notary Union”) has clarified that restoration and lease agreements for immovable property owned by the General Directorate of Foundations (and related foundations) are exempt from stamp duty and fees.
The Notary Union requested guidance on the topic from the Revenue Administration. To support the inquiry, the Notary Union provided a construction and lease agreement with conditional operation. The example document was a renovation agreement, executed between a private company and the Regional Directorate of Foundations (acting on behalf of the General Directorate of Foundations).
The Revenue Administration stated that as per Article 77 of the Foundations Law No 5737, immovable property owned by the General Directorate and related foundations is deemed to be state-owned property, is non-seizable, cannot be pledged and any transactions related to such property are exempt from stamp duty and fees.
The Notary Union requested further clarification from the Revenue Administration since the first response did not clearly cover the renovation agreement provided.
The Revenue Administration responded that lease agreements with conditional operating, executed between the Foundation’s management and private companies for immovable property owned by the General Directorate of Foundations and related foundations are exempt from stamp duty and fees. Therefore, reconstruction agreements are included within such exemption.
Please see this link for Notary Union’s Circular No. 2016/11, issued on 23 June 2016 (only available in Turkish).