Despite Turkey gaining some serious attention from the investor world in recent months because of its strong recovery from the downturn and boosted visitor numbers, currently a different type of investor focussing on Turkish property investments.

A growing level of interest in Turkey is emerging from the tax-savvy members of the investor world, because buying a property under a Self Invested Personal Pension (SIPP) allows the buyer to benefit from tax savings on an investment of up to 40%.

The benefits of buying in Turkey have been well-documented in the press, and now for investors it is a case of how they will make the purchase, rather than where. A recent STR Global report labelled Istanbul as one of the most popular conference locations in the world, and over the next few months women leaders from across the country will arrive in the city for a prestigious corporate conference. Reports like this, have of course, simply fuelled the demand for hotel rooms investments across Turkey.

So what are the gains from using a SIPP? Well, in short, a high-rate taxpayer who invests 100,000 in a property will gain a tax relief of 40,000, reducing an investment of 100,000 to 60,000, and when you look at a calculation like this, you can see why there has been a surge in investor interest.

And, as visitor numbers to Turkey increase and hotel occupancy numbers continue to climb, there are plenty of reasons to invest.
Harmony Bay in particular is one development in the seaside resort of Akbuk that is attracting SIPP investors, because its affordable properties at 49,000 that generate 6% yields are becoming particularly cost effective under this tax-friendly approach.

What is more, a recent report by the Organisation for Economic Cooperation and Development (OECD) also revealed that Turkey is the second-lowest taxed country in the world, which has no doubt caused even more of a stir among the investors looking to minimise their spend and maximise their return.

Clearly there has been a shift in thinking among overseas property investors, and now that Turkey's profile has been suitably raised, many are looking for ways to save on investments, and for the meantime at least, the SIPP appear to be the weapon on choice.

Graham Flaherty http://www.IstanbulPropertyInvestment.com/