Taxes in Turkey 2025: Rates for Individuals & Businesses

Are you thinking about living, working, or investing in Turkey? Understanding taxes in Turkey is essential for making informed financial decisions. Whether you’re buying property, running a business, or earning income in Turkey, different taxes may apply.

Fortunately, Turkey offers relatively low tax rates compared to many European countries, making it an attractive option for foreign investors. However, navigating the system can be complex without the right information. That’s where this guide comes in.

Here’s what you’ll learn:

• Who pays taxes in Turkey
• Personal tax rates in Turkey
• Corporate income tax in Turkey
• Capital gains rate in Turkey
• Turkey inheritance and gift taxes
• Consumption taxes in Turkey
• Turkey property taxes
• Turkey crypto taxes
• Turkey’s double taxation treaties
• How to file taxes in Turkey

Who pays taxes in Turkey?

Turkey has a residency-based tax system. This means you only pay tax on your worldwide income if you are a tax resident of Turkey.

Tax residents

You are considered a tax resident if you stay in Turkey for 183 days or more in a calendar year, whether continuously or not. Your immigration status does not affect this, only the number of days you spend in the country. This is important if you plan to apply for Turkey’s Citizenship by Investment program.

Tax residents must pay taxes on their worldwide income, including earnings from outside Turkey.

Non-tax residents

If you stay in Turkey for less than 183 days in a calendar year, you are a non-resident for tax purposes. Non-residents only pay local income taxes on income earned in Turkey, not on income from other countries.

For companies, if the head office is in another country, the company is a non-resident taxpayer, even if it earns income in Turkey.

Personal Tax Rates in Turkey

Individual income tax rates in Turkey are based on a progressive income tax system with rates ranging from 15% to 40%, depending on taxable income levels. The rates are structured as follows:

Subjects for personal income tax in Turkey

Based on income tax law, individual income tax in Turkey 2025 can come from a range of sources, including:

• Agricultural profits: Profits from agricultural activities, including planting, hunting, fishing, cultivating, etc.
• Pensions: Disability, retirement, orphan pensions etc.
• Income from business: All industrial or commercial activities carried out in permanent establishments.
• Wages: Salaries and wages from an employer-employee relationship.
• Capital investment: Dividends, interest, rent etc. (Subject to withholding tax).
• Independent personal services income: Turkey taxes for freelancers applies to all freelance services.
• Immovable property: Income resulting from land, buildings, quarries and mines, machinery installations, copyrights, trademarks, and vehicles (aircrafts, ships etc.).
• Non-recurrent income: Earnings that don’t recur regularly, generally once off events.

Social security contributions in Turkey are also something to consider. Generally, the employer is liable for 20.5% of the salary, while the employees pays 14%. However, expat taxes dictate that foreign nationals receive an exemption period of three months on Turkish social security premiums from the start date of employment.

Corporate Tax Rates in Turkey

Corporate income taxes in Turkey are currently set at 25%, an important consideration for those thinking of starting a business in Turkey. The Turkey corporate tax rate applies to most companies, however a higher rate of 30% applies to financial institutions such as banks and insurance companies.

Turkey also has 18 free zones, offering a special tax regime, including:

• No stamp duty
• No property or real estate taxes
• No VAT on logistics to third party countries
• No corporate or income tax

Here are the 18 free zones for corporate tax exemptions in Turkey:

Consumption Taxes in Turkey (VAT)

The standard value-added tax (VAT) rate in Turkey is 20%. There are reduced VAT rates for certain products, including:

There is also a special consumption tax category for certain industries and products. This special consumption tax is collected once and is applicable to the following:

• Alcohol, sugar drinks, and tobacco products
• Petroleum-based products
• Vehicles (Land, sea, and air)
• Luxury products (phones, caviar, furs, household appliances etc.)

Capital Gains Tax in Turkey

Capital gains for individuals

For non-residents of Turkey, capital gains tax only applies to assets within Turkey. Foreign investments generally do not fall under capital gains tax in Turkey.

Assets within Turkey that are sold and earn a profit are taxed, but it depends on how long the asset has been held and the type of asset. Here are some examples:

• Real estate: If you have owned a Turkish property for over five years, capital gains from the sale are exempt. If you sell the property within five years you are liable for the capital gains, which range from 15%-40%.
• Stocks and bonds: Short term holdings (under one year) are taxed based on the income bracket of the individual seller. Securities traded on the Istanbul Stock Exchange are exempt if they are held for over one year.

Inheritance Tax in Turkey

Turkey inheritance tax ranges between 1%-30%. Inheritance tax in Turkey depends on the degree of relationship between the heir and the deceased, as well as the value of the inheritance.

Turkish inheritance and gift tax must be paid within three years of obtaining ownership of the inherited property. This is applicable to Turkish residents and non-residents that inherit Turkish property.

Here is how the progressive inheritance tax works:

• Lower value inheritances: 1%-10%
• Higher-value inheritances: 10%-30%

Turkey Property Taxes

If you are thinking about investing in Turkish property, it is essential to understand property tax in Turkey for foreigners and residents. Turkish property taxes are as follows:

Turkey Crypto Taxes

Crypto is quickly becoming one of the most popular investment options across the globe. In fact, Turkey ranks as the 15th best nation for crypto attractiveness and adoption according to our Global Intelligence Unit report on cryptocurrency.

However, as of 2025, the Turkish Government does not have a specific taxation network for cryptocurrencies. That being said. Generally, crypto transactions in Turkey are seen as capital gains and may be subject to personal or corporate income tax depending on the nature of the transaction.

It is essential for those trading cryptocurrencies in Turkey to know which transaction types are taxed and how this may affect determining taxable income.

Double Tax Treaties in Turkey

Turkey has valid Double Tax Treaties (DTTs) with 85 countries, allowing individuals and companies to avoid double taxation on the same income.

There are 85 countries with double taxation treaties with Turkey, some include:

• Austria
• Canada
• France
• Germany
• Italy
• New Zealand
• Sweden
• The Netherlands
• United Kingdom
• United States

It is essential that foreign nationals know which Turkish taxes they are liable for. This includes how they can prevent paying double tax on the same products and services. For example, taxes in Turkey for US citizens would fall under the double taxation treaty, meaning they won’t be taxed on the same income twice.

How to File Taxes in Turkey

Before you do anything regarding Turkish taxes as a foreign national it is best to speak with a Turkish tax specialist to ensure you are paying the correct taxes each year.

To file taxes in Turkey, individuals and businesses must follow these steps:

• Step one: Register with the Turkish tax office and obtain a tax identification number.
• Step two: Gather required documents: Relevant financial records, income statements, and deductions.
• Step three: Submit taxes online through Turkey’s Revenue Administration (GİB).

Becoming a Turkish Taxpayer: Pathway to Citizenship

The Turkey Citizenship by Investment program is a popular option for foreign nationals who want to live in Turkey. There are various ways to invest in Turkey, including:

1. Purchase real estate: Buy property in Turkey valued at a minimum of $400,000.
2. Fixed capital investment: Make an investment of at least $500,000 in a Turkish company.
3. Bank deposit: Deposit a minimum of $500,000 in a Turkish bank account.
4. Government bonds: Invest at least $500,000 in Turkish government bonds.
5. Investment in fund shares: Place a minimum of $500,000 in a real estate or venture capital investment fund.
6. Job creation: Create employment for at least 50 people in Turkey.

One of the main benefits of the Turkey Citizenship by Investment program is that you can obtain a Turkish passport in as little as four months.

Additionally, Turkey is a good option for those that want to live in Turkey part time with a holiday home without spending more than 183 days in the country to avoid taxation in Turkey for foreigners. Plus, with double taxation treaties with 85 countries, you won’t be taxed twice.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions about Taxes in Turkey

How much tax do you pay in Turkey?

Turkey applies a progressive income tax rate of 15% to 40% for individuals, with tax deductions available. Companies operating in one of Turkey’s 18 economic free zones are exempt from corporate tax. Additionally, certain goods and services benefit from reduced VAT rates of 1% and 8%.

How do I pay tax in Turkey?

To file taxes in Turkey, individuals and businesses must follow these steps:

1. Register with the Turkish tax office and obtain a tax identification number.
2. Gather required documents: Relevant financial records, income statements, and deductions.
3. Submit taxes online through Turkey’s Revenue Administration (GİB).

What is the VAT tax in Turkey?

Turkey’s standard VAT rate is 20%, applying to most taxable services. However, some are exempt, including individual leasing of immovable property, financial transactions, and agricultural water supply.

Are taxes low in Turkey?

Compared with many other western European countries, taxes in Turkey are generally quite low. For example, the top employment income tax rate in the UK is 45%, while Turkey stands at 40%. Italy comes in at 47%, while Portugal is 53%.

Does Turkey have wealth tax?

No, there are no national wealth taxes in Turkey.

Does Turkey tax on worldwide income?

Turkey taxes residents on their worldwide income, while non-residents are only taxed on income from Turkish sources. Income tax is applied at progressive rates after certain deductions and allowances. There is no special tax regime for expatriates.

Does Turkey have property tax?

Yes, property tax rates in Turkey vary by type and location. Residential properties are taxed at 0.1% of their value, rising to 0.2% in major cities. Commercial properties are subject to a 0.2% tax, increasing to 0.4% in urban areas. Farmland is taxed at 0.2%, doubling to 0.4% in cities. Vacant land has the highest rates, taxed at 0.3%, or 0.6% if located in a major city

Do foreigners pay taxes in Turkey?

Non-tax residents are not required to pay taxes in Turkey. Taxes in Turkey for foreigners only applies to those that spend 183 days a year in the country. Only then are foreign nationals liable to pay tax on their worldwide income (foreign income included) unless they fall under the double taxation treaty.

Are property taxes high in Turkey?

No, property taxes in Turkey are relatively low compared to many other countries. For example, stamp duty in the UK can go up to 12%, while Turkey’s stamp tax is 4%.

Is there inheritance tax in Turkey?

Yes, Turkey inheritance tax ranges between 1%-30%. Inheritance tax in Turkey depends on the degree of relationship between the heir and the deceased, as well as the value of the inheritance.

Is Turkey tax friendly?

Yes, Turkey employs a progressive tax system with tax rate ranging between 15%-40%. The double tax treaties make Turkey very tax friendly for foreign nationals.

Is there a tax treaty between Turkey and the United States?

The US-Turkey Tax Treaty seeks to eliminate double taxation and enhance economic relations between the two nations. It includes provisions for reduced taxes on dividends, interest, and royalties, as well as clear rules for taxing business profits. The treaty also establishes mechanisms for resolving disputes through mutual agreement.

What role does taxation play in Turkey's economy?

Taxation plays a significant role in Turkey’s economy, with a tax-to-GDP ratio of 41.65% in 2021. While the central government imposes the majority of taxes, certain taxes are collected by municipalities, with their rates set by centrally issued legislation.