Turkey taxes 2026 for foreigners and expats

What taxes do you pay in Turkey in 2026

A high salary in Turkey loses up to 40% to income tax plus another 15% to social security. For money earned inside the country, the burden is closer to Germany than to neighbouring Georgia or the United Arab Emirates. Yet from 2026, new residents can leave their income from abroad untaxed for 20 years.

Here are all the main taxes in one table. Amounts here are in US dollars with the sum in Turkish lira in brackets; one dollar is about 49 lira.

There are no local surcharges on income tax: the rate is the same in Istanbul, Antalya and Mardin. Municipalities collect only property tax and minor local fees.

Compare taxes in 146 countries: relocation taxes 2026

How the Turkish tax system works

The Turkish tax system is centralised and almost entirely digital. Taxes are collected by GİB (Gelir İdaresi Başkanlığı, the Revenue Administration) under the Ministry of Treasury and Finance, social security by the separate SGK fund, and property tax by the municipality where the property sits.

Three laws set almost everything. Income Tax Law No. 193 (Gelir Vergisi Kanunu, GVK) defines residency and the personal brackets. Law No. 5520 covers corporate tax. Law No. 3065 covers value added tax. Amounts and thresholds are updated every year by the revaluation rate (yeniden değerleme oranı), which was 25.49% for 2026.

The tax year is the calendar year. Individuals file in March for the previous year, mostly through the GİB online portal (İnteraktif Vergi Dairesi, the interactive tax office) or the pre-filled return system (hazır beyan). Employees with one employer file nothing: the employer withholds the tax.

Without a tax number you can do almost nothing. The number (vergi kimlik numarası) is needed to buy a flat, open a bank account, connect utilities or register a company. Foreigners get one at a tax office with their passport. Companies and sole traders must keep books through a licensed accountant, an SMMM (serbest muhasebeci mali müşavir, independent accountant and financial adviser): you cannot file their returns yourself.

Who becomes a tax resident in Turkey

A Turkish passport or residence permit does not make you a tax resident. Actually living in the country does, and everything depends on that status: a resident (tam mükellef, fully liable taxpayer) pays on worldwide income, a non-resident (dar mükellef, limited taxpayer) only on Turkish income.

Article 4 of the Income Tax Law sets two tests. The first is having a domicile (ikametgah) in Turkey under the Civil Code. The second is staying in the country continuously for more than six months in a calendar year, and short trips abroad do not break the period. It is commonly summarised as 183 days, but any dispute with the tax office will turn on continuity and on where your home really is.

Your centre of life outweighs the calendar. A long-term flat, family and children in a local school, running a business from Istanbul: this can be enough for residency even without six months. Conversely, six months in Antalya while your home and family stay in another country give you arguments against it.

Exceptions. Foreigners who come to study, for medical treatment, on holiday or for a specific assignment from an employer do not become resident even after six months. The purpose must be backed by documents, and it does not cover a freelancer simply living by the sea.

Citizenship by investment does not make you resident. An investor who obtained Turkish citizenship through property and lives elsewhere remains a non-resident for GİB. The other way round, the tax office looks at your physical presence, not at your migration status. More on the statuses themselves in our guide to Turkish residence permits.

There is no split year. Status is set for the whole calendar year. Move in May, stay until December for more than six months, and you are resident for the whole year, including January to April income. If your former country also treats you as resident, the double tax treaty settles the conflict. We explain the mechanics in our article on the 183-day rule.

Turkey tax residency: how to become a resident and count the days

Turkey makes you resident after a stay of more than 6 months in a row within a calendar year, and short trips do not break it. The second ground is domicile: a permanent home in Turkey. A residence permit alone does not create the status.

There is a key exception: people who come to study, for treatment, on holiday or on an employer's assignment do not become resident even after half a year. A resident pays progressive income tax on worldwide income, a non-resident only on Turkish income. The status is confirmed by a Turkish Revenue Administration certificate.

Mistakes cost more: half a year in Antalya with a home elsewhere is disputable for both tax offices. Murblz support removes these risks: we count days, assess your ties and obtain the certificate. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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What is the income tax rate in Turkey

The top 40% rate in Turkey applies to annual income above $110,000 (5.3 million lira). The scale is progressive with five brackets, and there are two scales: for salaries the third bracket is wider, so an employee and an entrepreneur with the same income pay different amounts.

Each rate applies only to the slice of income inside its bracket. For salaries the tax is calculated cumulatively from January, which catches newcomers out: in January 15% is withheld, and by autumn the running total moves into 27% or 35%. On the same gross salary, December take-home pay is noticeably lower than January's.

No personal allowance, but a minimum wage exemption. The part of every salary equal to the minimum wage is exempt from income tax and stamp duty for all employees. In 2026 the minimum wage is $680 (33,030 lira) gross a month, $580 (28,075.50 lira) net. Over a year the exemption saves about $1,200 (57,900 lira) of tax. For a high salary it is a fixed discount rather than a percentage, and its weight fades fast.

Stamp duty. Employers also withhold damga vergisi of 0.759% from salaries. The part equal to the minimum wage is exempt from it too.

A hidden tax rise. The brackets were raised by about 20% for 2026, while the official revaluation rate was 25.49%. A salary indexed even just to inflation climbs up the scale, and the real burden grows with no change in the rates.

What taxes do foreigners and non-residents pay in Turkey

Turkey has no separate scale for foreigners: nationality does not affect the rate. A foreign resident pays exactly like a Turk, and a foreign non-resident pays only on income from Turkish sources. A salary from abroad, dividends from a foreign broker and interest on accounts outside Turkey are none of the non-resident's Turkish business.

If all Turkish income has already been taxed at source, a non-resident files no return. A non-resident leaving the country for good must settle their taxes 15 days before departure.

The treaty rate does not apply by itself. For a Turkish payer to withhold 10% instead of 15-20%, it needs a tax residency certificate from your country before the payment. Anything over-withheld without one comes back only through a refund procedure that takes months.

There is no special tax on foreigners living in Turkey. The cost of a residence permit is fees and insurance, not tax. How to obtain the status itself is covered in our article on Turkish residence permits in 2026.

How to pay no tax on foreign income for 20 years

This is the biggest Turkish tax story in many years. Law No. 7582, published in the Official Gazette on 4 June 2026, added Article 20/D (mükerrer 20/D) to the Income Tax Law: income that new residents receive from abroad is exempt from Turkish tax for 20 years. The Ministry of Finance set the procedure in Income Tax General Communiqué No. 333 (Gelir Vergisi Genel Tebliği Seri No: 333), published on 4 July 2026.

Who qualifies. An individual who became a Turkish tax resident on or after 1 January 2026 and, in the three preceding calendar years, had neither a domicile nor tax liability in Turkey. Full calendar years count, not a rolling 36 months. Nationality does not matter: the relief is open to foreigners and to returning Turks alike. Past Turkish tax only on rent, securities or capital gains does not disqualify you, but work or business in Turkey during those three years does.

What is exempt. Income earned outside Turkey: dividends and interest from foreign companies and banks, capital gains on foreign assets, rent from property abroad, pensions and pay for work genuinely performed abroad. None of it has to be declared at all.

What stays taxable. Everything Turkish: salary for work in Turkey, rent from local property, profits of a Turkish business, sales of Turkish assets. Value added tax, property tax and stamp duty still apply.

How to apply. You must obtain an exemption certificate from your tax office (Yurt Dışından Elde Edilen Kazanç ve İratlar İçin İstisna Belgesi, certificate of exemption for income earned abroad). The application is due by the end of the year in which you became resident; if that happened in November or December, you have until the end of February of the following year. Late applicants lose the relief. If it later turns out the conditions were not met, the tax is collected for all years with a tax loss penalty and late payment interest.

A bonus for heirs. While the exemption runs, an inheritance from such a resident is taxed at a flat 1% instead of the scale of up to 10%.

Asset amnesty. The same law opened another amnesty (varlık barışı, literally asset peace): money, gold and securities held abroad can be declared through a Turkish bank or broker until 31 July 2027 at a 5% rate. The rate falls if you commit to keep the money in Turkey in a time deposit, government bonds (DİBS), lease certificates (the Islamic-finance equivalent of bonds) or venture capital funds: one year 4%, two years 3%, three 2%, four 1%, five years or more 0%.

How much do freelancers, remote workers and sole traders pay in Turkey

Remote work done from Turkey for a foreign client is Turkish income, not foreign income. The Income Tax Law treats income from professional activity as Turkish-source when the work is performed in Turkey, and Communiqué No. 333 expressly excludes such earnings from the 20-year exemption. For freelancers, this is the most important paragraph on the page.

How freelancers are taxed. Self-employment income (serbest meslek kazancı) falls under the scale for other income, 15-40%, after deducting documented expenses. You must register with the tax office, issue electronic receipts (serbest meslek makbuzu), make advance tax payments during the year and file an annual return in March. When a Turkish company pays you, it withholds 20% at payment, and that amount is credited later.

A 100% deduction for service exports. From 1 January 2026, Presidential Decree No. 11257 (Official Gazette of 30 April 2026) raised the deduction from 80% to 100% of profit from services supplied to foreign clients. For individuals it works under Article 89/13 of the Income Tax Law, for companies under Article 10/1-ğ of the Corporate Tax Law. The conditions are strict:

• the service is on a closed list: architecture, engineering, design, software, call centres, data storage, processing and analysis, bookkeeping, testing and certification and a few other fields; consulting is not on the list;
• the client is abroad and the result is used abroad; clients in Turkish free trade zones do not count;
• the revenue must be brought into Turkey by the filing deadline, and tax offices take the view that a partial transfer loses the whole deduction.

For a developer or designer with foreign clients, this can bring income tax down to zero, but not social security or accounting costs. For a consultant, coach or marketer there is no deduction.

Sole trader contributions. Entrepreneurs and freelancers pay social security to Bağ-Kur (the scheme for the self-employed) on a chosen base between $680 (33,030 lira) and $6,100 (297,270 lira) a month. The 2026 rate is 35.75% of the base; paying on time earns a 5-point discount, leaving 30.75%, which is about $210 (10,160 lira) a month on the minimum base.

Sole trader or company. For small profits a sole trader is cheaper, for large ones a company, because the personal scale quickly reaches 35 and 40%. Registration is handled by our company formation service.

What is the VAT rate in Turkey in 2026

The standard value added tax (KDV) rate in Turkey is 20%. It has applied since July 2023; before that it was 18%, and the old figure still circulates online. There are two reduced rates: 10% and 1%.

There is no registration threshold. This is the main difference from Europe. Turkey has no turnover below which you can stay out of value added tax: anyone running a business or a profession becomes a value added tax payer from the first transaction. Returns are monthly, due by the 28th of the following month.

Reverse charge. When a Turkish company pays a foreign contractor for services, it self-assesses value added tax on form KDV-2, pays it and deducts it in the same month. Cash-neutral, but extra paperwork.

Value added tax refunds are slow. Exporters and sellers at reduced rates accumulate value added tax to reclaim and get it back slowly, after audits and a report from a sworn financial adviser (yeminli mali müşavir, YMM).

What else is built into prices. Banks and insurers pay banking and insurance transaction tax (BSMV, Banka ve Sigorta Muameleleri Vergisi) at a main rate of 5%, instead of value added tax. The special consumption tax ÖTV sits in the price of fuel, alcohol, tobacco and cars: for passenger cars it depends on engine size and price and exceeds 100% in the upper bands. That is why cars in Turkey cost noticeably more than in Europe. The digital services tax on large platforms fell from 7.5% to 5% in 2026 and drops to 2.5% from 2027.

What taxes does a company pay in Turkey

Corporate income tax in Turkey is 25%, although older articles still quote 20% or 23%. A Turkish company pays it on worldwide profit, a foreign company only on the profit of its Turkish permanent establishment.

Manufacturing at 12.5% from 2027. Law 7582 halves the rate for profit derived exclusively from manufacturing by companies with an industrial registry certificate and from agricultural production, starting with the 2027 tax period. It cannot be combined with the 5-point export reduction.

The 10% minimum tax is the biggest change of recent years. Since 2025 a company computes its tax twice: normally at 25% and in parallel at 10% of profit before a number of deductions. It pays the higher amount. The 100% service export deduction, for example, falls under this calculation, so an IT company pays 10% instead of zero. Income from technology parks (Law 4691), free trade zones (Law 3218) and R&D and design deductions are carved out of the minimum tax.

What actually lowers the burden. Profit from software development, R&D and design in technology parks (Teknokent) is exempt from corporate tax until the end of 2028, and salaries of qualifying staff from income tax. Under Law 7582, profit from transit trade where goods never enter Turkey gets a 95% deduction, rising to 100% in the Istanbul Financial Centre and certain industrial zones. The same deduction now goes to new qualified service centres: companies operating in at least three countries and earning at least 80% of revenue from abroad.

How much are social security contributions in Turkey

Hiring someone in Turkey costs 23.75% on top of their gross salary, and in 2026 high salaries became the most expensive to employ. SGK contributions are charged within a floor and a ceiling and paid monthly together with withheld income tax.

A higher ceiling and a higher employer share. From 2026 the maximum base rose from 7.5 to 9 times the minimum wage, to $6,100 (297,270 lira) a month, and the employer share went up by one point. For a team on high salaries, that is a visible jump in payroll costs.

Discounts. An employer that pays on time and has no arrears gets a reduction of 5 points in manufacturing and 2 points in other sectors. In practice an office employer pays 21.75%. Technology parks and R&D centres have separate incentives.

Foreign employees. A worker who stays insured in their home country is exempt from Turkish contributions for up to three months. Longer exemption requires a social security agreement between Turkey and that country, which has to be checked country by country.

What taxes apply to property in Turkey

The annual tax on a flat in Turkey is 0.1% of its tax value, or 0.2% in cities with metropolitan status. The municipality sets the tax value, well below market price, so an ordinary flat costs a few thousand lira a year. It is paid in two instalments, in spring and autumn.

High-value housing tax. It applies to homes with a tax value above $360,000 (17,711,000 lira), and only to the excess. If it is the owner's only home in Turkey, no tax is due.

Selling. An individual who has owned a property for more than five years pays no capital gains tax at all. On an earlier sale, the difference between sale and purchase price is taxed, but the purchase price is indexed to the producer price index (Yİ-ÜFE) if it rose by 10% or more. With Turkish inflation, indexation often wipes out almost the entire nominal gain.

Renting out. Up to $1,200 (58,000 lira) a year of residential rent is exempt. Above that, the 15-40% scale applies after expenses; instead of documented costs you can deduct a flat 15% of the rent. If the tenant is a company, it withholds 20% itself. If you are buying as an investment, our property selection and due diligence comes with a tax calculation.

Inheritance and gifts. Inheritance is taxed at 1-10%, lifetime gifts at 10-30%, three times as much. In 2026 the exempt amounts are $60,000 (2,907,136 lira) per share of each child or spouse, $120,000 (5,817,845 lira) for a spouse when there are no children, and $1,400 (66,935 lira) for gifts. Handing assets to children early is expensive in Turkey.

Phone registration, exit fee and car tax: what else you pay in Turkey

Bringing your own phone to Turkey and using it with a Turkish SIM card costs $1,200 (54,258 lira) in 2026. This is the IMEI registration fee (IMEI kayıt harcı), often called the phone tax. Without registration, a handset bought abroad is eventually blocked on Turkish networks. A tourist using a foreign SIM card on roaming does not need to register the phone.

The exit fee applies only to Turkish citizens. The departure fee (yurt dışı çıkış harcı) is $30 (1,250 lira) per person per trip in 2026. Foreigners do not pay it, while holders of a Turkish passport obtained by investment who live in the country do.

Cars. Beyond the ÖTV built into the purchase price, owners pay an annual motor vehicle tax (motorlu taşıtlar vergisi, MTV). The amount depends on engine size, age and value of the car and is revised every year.

When to file tax returns and what late filing costs

The annual personal return in Turkey is filed strictly between 1 and 31 March, with no extensions. The tax is paid in two equal instalments, in March and July. Deadlines for companies and value added tax are tighter.

A fixed stamp duty of $25 (1,189.50 lira) is charged on the annual personal return in 2026. Dividends from Turkish companies must be declared only if the taxable half exceeds $8,200 (400,000 lira). For foreign dividends and interest with no Turkish withholding the threshold is lower, $450 (22,000 lira), and once it is exceeded the whole amount is declared. The second threshold is irrelevant for anyone using the Article 20/D exemption, since they do not declare foreign income at all.

Penalties. Underpaying tax (vergi ziyaı, tax loss) is penalised with a fine equal to the tax itself, and a multiple of it where there are signs of evasion. Late payment accrues monthly interest, which is significant at Turkish interest rates.

Not every company needs an audit. From 2026 accounting periods, a statutory audit applies to companies that exceed two of three thresholds for two years in a row: assets of $11 million (500 million lira), revenue of $21 million (1 billion lira), 150 employees. Presidential Decree No. 11066 of 17 March 2026 raised the thresholds from $6.1 million (300 million lira) and $13 million (600 million lira). Banks, insurers and listed companies are audited regardless of size. If you need external control over your accounts, see our audit and reporting service.

Does Turkey have double tax treaties

Yes. Turkey has dozens of treaties in force, including with Russia, Ukraine, Kazakhstan and almost every other former Soviet state. The treaty with Russia was signed in 1997 and has applied since 2000. In 2023 Russia suspended parts of its treaties with countries it labelled unfriendly, but Turkey was not among them.

How the credit works. A Turkish resident declares worldwide income and credits tax paid abroad against Turkish tax. The credit is capped at the Turkish tax on the same income: if more was withheld abroad, the difference is not refunded. You need proof of payment, legalised by apostille or through a consulate.

The 20/D exemption changes the logic. Anyone using it gets no foreign tax credit at all, because exempt income never enters the Turkish return. What they can do is present a Turkish residency certificate (mukimlik belgesi) in the source country and cut withholding there under the treaty. Skip that step and the saving stays on paper.

Foreign accounts are visible. Turkey takes part in the automatic exchange of financial information under the Common Reporting Standard, so the tax office receives data on residents' accounts abroad. Anyone who remains tax resident elsewhere should also keep that country's controlled foreign company rules in mind, see our page on controlled foreign company rules.

Turkey, Georgia, Cyprus or the United Arab Emirates: where are taxes lower

Turkey is the only country in this comparison that taxes local income at up to 40% while charging a newcomer nothing on foreign income. Georgia and the United Arab Emirates do not tax foreign income at all, with no time limit, and Cyprus does the same for dividends and interest. The difference lies in the details, and the details decide.

Where Turkey wins. A large country with developed healthcare and direct flights, where foreign passive income goes untaxed for 20 years. In Cyprus the zero rate covers only dividends and interest, but it is in the European Union.

Where it loses. For money earned locally, Turkey is more expensive than every country in this comparison except Greece. Remote work from Turkey is taxed as Turkish income, whereas in Georgia and the Emirates the tax office does not care about a foreign client. Compare more countries in our overview of taxes by jurisdiction and in our breakdown of European taxes in 2026.

What it adds up to: three worked examples

Example 1. An employee on $2,100 (100,000 lira) gross a month. That is well above the average salary and typical for a skilled professional in Istanbul. Figures for 2026.

The employee loses about 30.5% of gross. Measured against the full cost of employment, the state takes 651,000 of 1,485,000 lira, or 43.8%. With the 2-point contribution discount it is about 43%. That is German or Italian territory, not a low-tax jurisdiction.

Example 2. A company owner with $61,000 (3,000,000 lira) of profit. The company pays 25%, or 750,000 lira. When the remaining 2,250,000 is distributed, 15% dividend tax is withheld, another 337,500. A resident declares only half of the dividend, 1,125,000 lira: tax on the scale is 276,250, and the full 337,500 withheld can be credited. The 61,250 lira overpayment is refunded. Total: 1,026,250 lira, or 34.2% of profit. A sole trader with $31,000 (1,500,000 lira) of profit would pay 407,500 lira of tax, about 27.2%, plus Bağ-Kur contributions.

Example 3. A new resident with $50,000 of foreign dividends a year (about 2,460,000 lira). Without the exemption, this is other income on the scale: 743,500 lira, about $16,000, less credit for tax withheld abroad. With an Article 20/D certificate, Turkish tax is zero and there is no return. Only the source-country withholding remains, and a Turkish residency certificate can reduce it under a treaty.

Pitfalls: who the Turkish tax system does not suit

The Article 20/D relief is closed to most people who already live in Turkey. The condition is three calendar years with no domicile and no tax liability in the country before the move. Someone who settled in Antalya or Istanbul in 2022-2024 does not meet it, and leaving for a year or two to come back as a newcomer will not work: the break must last three full calendar years.

Five traps the brochures leave out.

• A missed deadline cannot be fixed. The certificate application is due by the end of the year you became resident, or by the end of February if you moved in November or December. Missing it costs you the relief for all 20 years.
• Remote work from Turkey is Turkish income. Work physically done in Turkey is taxed at up to 40%, even if the client and the money are abroad. Only the service export deduction can help, and not for every profession.
• No foreign tax credit. If the source country withholds 15-30% on dividends, that money is lost for good on exempt income. The higher the withholding at source, the smaller the benefit.
• An accountant is mandatory. Companies and sole traders cannot file on their own, value added tax applies from the first sale and returns are monthly. Budget for bookkeeping from month one: Murblz specialists arrange it together with partner SMMMs.
• Rules change by decree. Rates on deposits, dividends, digital services and deductions have changed several times in the past two years. A calculation made when you move may be out of date a year later.

Turkey does not suit people whose main income is earned in the country: a local job, a local business, renting out Turkish property. Consultants and marketers working remotely without access to the service export deduction. Anyone who lived in Turkey in the past three years. And anyone who wants the simplest possible regime with no returns: the United Arab Emirates is simpler.

Turkey does suit rentiers and investors with capital abroad who are moving for the first time, owners of foreign businesses not managed from Turkey, and IT specialists with foreign clients whose service exports are properly structured.

If you are only planning the move, start with the order of steps: first leave tax residency in your old country, then obtain Turkish status and the Article 20/D certificate on time. Our relocation support team handles that whole chain.

The Turkish tax system at a glance

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