Tax advice for Turkey
Settle Turkey can provide all the tax advice for Turkey that any foreigner living here needs, whether you are working in Turkey, a digital nomad, a student, or a long-term tourist. Settle Turkey can also show you how to file your taxes for you home country through our Tax Advice for Turkey service, saving you from the tedious and complicated Turkish and international bureaucracy.
Information about taxation in Turkey
Taxation is central to Turkey’s economic model, with 25% of the country’s GDP derived from taxes. Recent years have seen increasing regulation of the Turkish economy, and with it increases in various taxes. Despite this, however, Turkey is still considered to have one of the most competitive corporate tax rates in the OECD and its taxation system has been recognized for its clarity and alignment with international standards. Taxes are set by the Turkish Revenue Administration.
Individual income tax can be anything from 15% to 40% and is considered progressive. Residents in Turkey have full tax liability for their worldwide income. Non-residents are subject to taxes on their revenues earned in Turkey. Individuals with legal permanent residence and those who reside in Turkey for more than six months per year are considered residents for legal and taxation purposes. As such, finding tax advice for Turkey residents is usually a good idea.
Corporate income tax was a flat 25% in 2021, reduced to 23% in 2022. If the headquarters or management of a corporation is located in Turkey, it is considered a resident company and is subject to taxes derived overseas.
VAT is set at 1%, 8%, and 18%, depending on your area of business. Other taxes on expenditure include the Special Consumption Tax (levied on products such as tobacco and petroleum), Stamp Duty (levied on official documents), and three forms of wealth tax (covering property, vehicles, and inheritance).
To get your tax arrangements and obligations right from the beginning, let us counsel you on tax advice for Turkey, with what arrangements and procedures would work best for you, your family, or your business.
Individual income tax chart:
| Income Scales (TRY) (Employment Income) | Rate (%) | Income Scales (TRY) (Non-Employment Income) | Rate (%) |
| Up to 24,000 | 15 | Up to 24,000 | 15 |
| 24,001-53,000 | 20 | 24,001-53,000 | 20 |
| 53,001-190,000 | 27 | 53,001-130,000 | 27 |
| 190,001-650,000 | 35 | 130,001-650,000 | 35 |
| 650,001 and over | 40 | 650,001 and over | 40 |