Foreign nationals working, buying property, or running businesses in Turkey are subject to the Turkish tax system. Determining your tax residency status is the first step to understanding your obligations.


1. Tax Residency Status

  • Full Taxpayers (Residents): Individuals who reside in Turkey continuously for more than 6 months in a calendar year are deemed tax residents. They are taxed on their worldwide income.
  • Limited Taxpayers (Non-Residents): Foreigners who stay in Turkey for less than 6 months. They are only taxed on income earned inside Turkey (e.g., rental income from a Turkish property, or salary paid by a Turkish entity).

2. Common Taxes for Foreigners

  • Income Tax (Gelir Vergisi): Calculated progressively from 15% to 40% on salaries and business profits.
  • Property Tax (Emlak Vergisi): Paid annually to the local municipality, ranging from 0.1% to 0.6% depending on the property type and location.
  • Corporate Tax: Applicable to foreign-owned businesses registered in Turkey, set at a flat rate of 25% on net company profits.

Turkey has signed Double Taxation Treaties (DTT) with over 80 countries to prevent expats from being taxed twice on the same income.



Frequently Asked Questions (FAQ)

Do Expats Pay Tax in Turkey?

  1. Tax Residency: Yes, if you stay in Turkey for more than 6 months continuously.
  2. Non-Residents: Only pay tax on income earned within Turkey (e.g., rental yield).
  3. Double Taxation: Prevented under bilateral tax treaties (DTT).