Taxes in Turkey – All about foreigners residing in Turkey


Taxes in Turkey are one of the most important sources of income for the government and the main pillar of the economy, as it can be said that the economic foundations of the Turkish government are based on a lack of oil and gas reserves.

Keep in mind that not only the government but also the Turkish people are cooperating very well with the government in this regard. For this reason, Turkey has been able to achieve significant economic growth, through the adoption of smart financial and economic policies in recent years.

Turkey has very clear policies regarding taxing foreign nationals in its territory, so if you are planning to invest in Turkey, buy a property in Turkey, register a company in Turkey, or conduct any financial transactions and purchase, first and foremost, we suggest that you obtain The information you need.

Types of taxes in Turkey

In general, it can be said that taxes in Turkish are obtained in two ways:

1. Direct taxes

Direct taxes are charged on people’s income or assets. As this type of tax is imposed directly and without intermediaries. Perhaps one of the most obvious is income tax for individuals or economic organizations and institutions, or the tax that is deducted directly from employee salaries.

2. Indirect taxes

These taxes are indirectly imposed on citizens. This type of tax is paid by everyone, but imperceptibly. Such as the price of goods or taxes on imports and transactions. For example, when someone purchases a product from the market, he pays the tax at the same time he pays the price of the product. Or when a person buys a Metro ticket, he pays taxes when he buys it.

Income tax in Turkey

According to Article 1 of the Income Tax Law, The income of a person is subject to income tax, net income, and the personal income within one year.

It can be said that the income tax is subject to the following:

  • Commercial income
  • Agricultural income
  • Wages
  • He entered self-employment
  • Real estate capital income
  • Stock income
  • Another source of income

The personal income tax and corporate tax are included in detail in Turkish tax law. Although corporate income tax and corporate tax are defined by different laws, most laws and regulations that apply to individuals, especially in terms of revenue components and the determination of net income, also apply to companies.

Personal income tax

The income of a person is subject to personal income tax. Note that the net income for a person is calculated within one year. It should be noted that the personal income tax rate ranges between 15 and 35 percent.

According to the Income Tax Law, the items that are considered as income are as follows:

  • Business revenue (working in Turkey)
  • Agricultural income
  • Salary
  • He entered self-employment
  • Real estate capital income (rental income)
  • Income from securities (income from investment in Turkey)
  • Other income

Note: Turkish Tax Law states that taxpayers must be people who have resided in Turkey for a long time or have been able to obtain Turkish citizenship. That is, they must have lived in Turkey for at least six months in the past year.

Corporate Tax in Turkey

Revenue from companies, cooperatives, state-owned enterprises, and economic institutions affiliated with associations or institutions and commercial partnerships are subject to corporate tax.

VAT (Value-Added Tax)

All products manufactured in Turkey, whether commercial, industrial or agricultural, which operate under Turkish law must pay value-added tax based on its income. VAT is the most common tax in Turkey, and value added from the primary source of the good or service to the end consumer is taxable.

Car Taxes in Turkey

According to Articles 5 and 6 of the Motor Tax Law: Cars are registered in branches or traffic offices in accordance with the Vehicle Law. It should be noted that aircraft and helicopters are registered with the General Directorate of Civil Aviation of the Ministry of Transport and are subject to vehicle taxes.

Read more about buying a car in Turkey

Property Taxes in Turkey

Real estate taxes actually apply to buildings on Turkish territory that are taxable. The term property includes all fixed structures, whether land or water, regardless of materials.

Individuals required to pay property tax must go to the property tax office in the municipality where the property is located.

The tax rate can vary from 0.1 to 0.6 percent. You should also bear in mind that taxes can vary depending on the property’s circumstances.