Taxes in Turkey: A Complete Guide for Foreigners and the New 20-Year Tax Regime

Although Turkey’s tax system is transparent, foreign nationals often have many reasonable questions in practice. Do you have to pay taxes if you hold a residence permit, own an apartment or a business in Turkey, or receive income from another country? In most cases, yes — but the answer depends not on your citizenship, but on your specific circumstances: where you are considered a tax resident, where your income comes from, and what assets you own. Foreign nationals may be subject to personal income tax, corporate income tax, VAT (KDV), annual property tax, fees payable when purchasing or selling property, and certain local and special charges.

For foreign investors, taxation in Turkey is especially important in 2026 because new incentives and exemptions associated with Law No. 7582 have been introduced. These changes can also create confusion about tax liabilities. If your circumstances involve relocation, investment, inheritance, rental income, or starting a business, it is sensible to obtain legal advice in advance rather than deal with the consequences of non-payment later.

How Turkey’s Tax System Works

Turkey’s tax system divides all mandatory payments into three main categories:

• taxes on income
• taxes on expenditure
• taxes related to property ownership.

For individuals, the most relevant taxes are those charged on salary, rental income, investment returns, and capital gains. For legal entities, the principal obligation is corporate income tax. Transactions involving the sale of goods, the provision of services, and consumption are subject to VAT (KDV). Property owners must also account for property tax and, in certain circumstances, taxes on high-value residential property, inheritance, and gifts.

Turkey’s main tax administration authority is Gelir İdaresi Başkanlığı (GİB), or Revenue Administration. Its online services give taxpayers access to a digital account, current rates, official guidance, reporting forms, and filing calendars for both individuals and businesses. However, not every payment is handled solely through the tax system. Annual property tax, for example, is paid to the municipality where the property is located, while property purchases and sales also require dealings with the land registry authorities and payment of Tapu Harcı.

A tax number in Turkey is required for nearly all significant legal and property-related transactions, including purchasing real estate, registering a company, conducting banking transactions, completing certain registration procedures, and paying taxes. Foreign nationals can apply online for a Vergi Numarası through the Digital Tax Office. The official form requires the applicant’s first and last name, nationality, passport details, address, telephone number, place of birth, and parents’ details. A Turkish tax number can also be obtained from the local tax office (Vergi Dairesi) at the applicant’s place of residence.

As for tax returns in Turkey, the country uses both pre-filled and periodic filing systems. For individuals receiving rental income, salary, investment income, and other income, the Hazır Beyan system provides a pre-filled return that the taxpayer reviews and confirms online. Under the GİB tax calendar, VAT returns and withholding tax declarations are filed regularly — usually monthly or quarterly — and are generally due around the 27th or 28th of the following month, depending on the type of obligation.

Who Is Required to Pay Taxes in Turkey

Taxes in Turkey are not paid only by Turkish citizens. Liabilities may arise for foreign nationals, property owners, businesses, employers, companies, investors, and heirs — in other words, for anyone who earns income, owns a taxable asset, or enters into a legally significant transaction in the Republic of Turkey.

From a practical standpoint, one of the most important questions is whether a person is considered a tax resident of Turkey. According to the GİB’s official position, non-residents are individuals who do not have a permanent place of residence in Turkey and do not remain in the country continuously for more than six months in a calendar year. These taxpayers are subject to limited taxation: they pay tax only on income arising in Turkey and do not declare income earned abroad. Tax residency is therefore a broad concept. Depending on the circumstances, a person may be required to account for both Turkish and foreign income unless an exemption, exception, or provision of an applicable double taxation treaty applies.

Apartment owners in Turkey will almost always face at least an annual tax liability, with additional tax consequences arising from rental, sale, gifting, or inheritance. Entrepreneurs and companies must also account for corporate income tax, VAT, payroll taxes, stamp duty, and sector-specific rules.

Main Taxes in Turkey

Personal Income Tax

In Turkey, personal income tax (Gelir Vergisi) is calculated on the basis of total income received during the calendar year. Many types of income may be taxable, including salary, business income, fees from independent professional practice, rental payments, investment returns, and other forms of personal income. When assessing a foreign national’s tax liability, it is particularly important to determine whether the income is Turkish-source income and whether the recipient is considered a Turkish tax resident.

The amount of tax depends on the type of income and the size of the taxable base. In 2026, Turkey continues to apply the progressive personal income tax rates set by the GİB, ranging from 15% to 40%. For income other than salary, the brackets are as follows: income up to 190,000 TRY is taxed at 15%, income up to 400,000 TRY at 20%, income up to 1,000,000 TRY at 27%, income up to 5,300,000 TRY at 35%, and any amount above that threshold at 40%. Salary income is subject to the same maximum rate, although the thresholds within the scale differ.

Property Taxes in Turkey

When buying property in Turkey, you must account not only for the purchase price but also for the tax known as Tapu Harcı, payable when the title deed is transferred. As a general rule, it is calculated on the value declared for the transaction and amounts to 4%. The GİB specifically warns that understating the actual price may result in an assessment of the unpaid fee and a penalty. Payment can be made through digital services using a T.C. kimlik number, foreign ID number, or tax number.

Tax obligations do not end once an apartment has been purchased. The owner must account for annual municipal property tax (Emlak Vergisi) and, when the property is rented out, tax on rental income (Emlak Kira Geliri Vergisi).

Annual property tax in Turkey is paid by owners to the municipality where the property is registered. If the property is located within a metropolitan municipality, the applicable rate is increased — in practice, it is doubled. This is particularly relevant in Antalya and Alanya. The tax is generally paid in two instalments: the first between March and May, and the second in November.

Under the rates applicable in 2026, property tax is charged as follows:

In 2026, rental income from residential property in Turkey is subject to a tax-free allowance of 58,000 TRY. If rental receipts exceed this threshold, tax is calculated under the progressive scale:

When reselling property, at least two situations must be distinguished. If an individual owner disposes of a property within five years of purchasing it, the profit is generally treated as a capital gain and taxed under Değer Artışı Kazancı, or the tax on the sale of property in Turkey. In 2026, an exemption of 150,000 TRY applies to this type of income. However, if property sales are regular and effectively commercial in nature, the tax authorities may classify the activity as a business rather than a one-off transaction.

High-value residential property tax is a separate issue. In 2026, properties valued at up to 17,711,000 TRY are exempt from Değerli Konut Vergisi. Where the property value exceeds this threshold, tax is charged progressively at rates of 0.3%, 0.6%, and 1.0%, depending on the relevant value band.

Corporate Taxes

For most companies in Turkey, the standard corporate income tax rate for the 2025–2026 assessment periods is 25%. A higher rate of 30% applies to banks, certain financial institutions, insurance and pension entities, and a number of companies operating under public-private partnership projects and the build-operate-transfer model. Exporters benefit from a reduced rate of 20% on export income, while manufacturing companies holding an industrial registration certificate are taxed at 24%.

Foreign businesses should bear in mind that establishing a corporate structure in Turkey does not automatically eliminate related obligations. In addition to corporate income tax, a company may be liable for VAT, withholding taxes, stamp duty, payroll taxes, and transaction-documentation requirements. When foreign participants establish a company, both the corporate and tax structures must be set up correctly from the very first step.

VAT (KDV)

VAT (KDV) in Turkey is one of the main taxes affecting businesses. The standard rates are officially set at 1%, 10%, and 20%, depending on the type of goods, services, and transaction. VAT applies to commercial, industrial, agricultural, and professional supplies, imports, and other transactions.

Under the tax calendar, returns are filed by the 27th of the following month, while the general VAT return and payment are usually due by the 28th.

New Tax Incentives in Turkey

The most significant tax development was Law No. 7582, published in the Official Gazette on June 4, 2026. The law introduced a new exemption mechanism for certain foreign-source income received by individuals, expanded the incentives available to qualified service centers, and revised the duration of several benefits under the Istanbul Financial Center regime.

What changed?

First, the legislation introduced a provision allowing individuals deemed resident in Turkey to claim a personal income tax exemption for certain income received from abroad for twenty years, provided that all statutory requirements are met.

In addition, qualified service centers were granted further corporate tax advantages, together with special rules governing the taxation of payments made to qualified personnel.

Certain amendments also affected Law No. 7412 on the Istanbul Financial Center. As a result, one preferential provision was extended from 2031 to 2047, while the original five-year period for applying the relevant benefit was increased to twenty years.

Who can claim the exemption?

For individuals, the decisive condition is that they must have had neither a residence nor a tax liability in Turkey during the three calendar years preceding the date on which they are deemed resident in the country. Different requirements apply to qualified service centers. These must be joint-stock companies operating in at least three countries and deriving at least 80% of their annual revenue from related foreign companies or companies within the same group.

What income may qualify for an exemption?

For individuals, the law specifically refers to income and receipts earned outside Turkey. For service centers, the incentives are linked to certain types of services and foreign-source revenue, including, for example, a high corporate tax exemption rate and preferential tax treatment of qualified personnel’s salaries within the prescribed limits.

Income from Turkish real estate, certain corporate liabilities, VAT, annual property taxes, and other obligations falling outside the scope of the specific exemption remain taxable.

For this reason, we recommend obtaining individual advice before changing your tax residency. It is important to review your home country’s domestic legislation, the possible application of a double taxation treaty, the source of each type of income, corporate relationships, evidence of the absence of tax ties with Turkey for three years, and related obligations arising from the asset structure. A mistake at this stage may lead not to savings, but to double taxation, a residency dispute, or the retroactive loss of the exemption.

Common Mistakes Made by Foreigners

The first common mistake is assuming that a residence permit automatically provides tax benefits. This is incorrect: a residence permit is not the same as a special tax regime and does not replace an analysis of income and applicable international agreements.

The second mistake is failing to understand your own tax status clearly. When a person does not determine in advance whether they are a Turkish tax resident, this often leads to errors concerning foreign salary, dividends, income from an overseas business, and other receipts that may later raise the question of whether they must be declared in Turkey.

The third mistake is assessing a property purchase solely by reference to the purchase price. In practice, the overall financial burden is much broader and may include Tapu Harcı, annual property tax, tax on rental income, potential consequences of gifting or inheritance, tax on a sale made within five years of purchase, and Değerli Konut Vergisi for high-value property.

The fourth mistake is incorrectly declaring foreign income. After Law No. 7582 came into force, many people began to view relocation to Turkey as automatically exempting foreign income from tax for twenty years. However, the law applies only when specific conditions are met, and relying on this interpretation without reviewing the individual’s circumstances is extremely risky.

When to Consult a Tax Attorney

The right time to consult a tax attorney in Turkey is not after a penalty has already been imposed, but much earlier: before changing tax residency, purchasing investment property, structuring ownership through a company, renting out property, selling an asset, registering a business, receiving substantial foreign income, administering an inheritance, or claiming benefits under Law No. 7582. The specialists at Tuncay&Barcın Law Office in Alanya will help you structure your position correctly so that it can withstand scrutiny from the tax authorities, banks, notaries, municipalities, and, where necessary, the courts.

FAQ

Who is required to pay taxes in Turkey?

Taxes in Turkey are paid by anyone who receives taxable income, owns property, or participates in a transaction with tax consequences. This applies not only to Turkish citizens, but also to foreign nationals, property owners, employers, entrepreneurs, and legal entities. The precise scope of a person’s obligations depends on their legal status and the nature of their income.

Do foreigners have to pay taxes in Turkey?

Yes, taxes for foreigners in Turkey apply when they receive income connected with the country. Tax liability may arise from owning property, receiving rental income, selling an asset at a profit, conducting business activities, or receiving any other income treated as taxable by law. For non-residents, only Turkish-source income is generally taken into account.

Who is considered a tax resident of Turkey?

When determining tax residency, two basic factors are generally considered: whether the person has a permanent place of residence and whether they are physically present in the Republic of Turkey for more than six months during a calendar year. However, the actual circumstances of each case and the provisions of the applicable double taxation treaty must also be examined.

Is it true that Turkey has introduced a 20-year tax holiday?

No. This statement oversimplifies the changes. Law No. 7582 did not introduce a universal tax holiday for everyone. It created a specific exemption that may apply only to certain types of foreign income and only when the statutory requirements are met.

Who can claim the tax exemption under Law No. 7582?

For individuals, one of the key requirements is that they must have had neither a residence nor a tax liability in Turkey during the three calendar years preceding the date on which they are deemed resident in the country. Separate rules apply to businesses. In particular, qualified service centers must meet specific criteria, including operating in at least three countries and deriving at least 80% of annual revenue from related foreign companies.

What taxes does a property owner pay in Turkey?

A property owner in Turkey may face several taxes and charges at once. These include Tapu Harcı when completing the purchase, annual property tax, tax on rental income, and capital gains tax upon sale. High-value properties may also be subject to valuable residential property tax.

Do you have to pay tax after buying an apartment?

Yes. After purchasing an apartment in Turkey, the owner is generally required to pay annual property tax. The amount depends on the property’s classification, value, and location.

What taxes apply when selling property?

If the property is sold within five years of acquisition, the profit may be taxed as a capital gain. In this situation, individuals must calculate the taxable gain correctly, taking into account the exemptions and deductions in force.

What taxes do companies pay in Turkey?

The standard list generally includes corporate income tax, VAT, payroll-related taxes, stamp duty, and other special charges where applicable to a particular industry. The final list of obligations depends on the business structure, sector, and nature of its operations.

How can you obtain a tax number in Turkey?

Foreign nationals can obtain an individual tax number through the official online service of the Revenue Administration of Turkey. Applicants are required to provide standard personal details.