Turkey Taxation: Income Tax and Property Tax

Published on October 4, 2025 and written by Cyril Jarnias

Navigating the complexities of Turkish taxation can be challenging, especially for expatriates. With its unique characteristics, income tax and property tax in Turkey present distinct challenges that every foreign resident must understand to optimize their financial situation and avoid unpleasant surprises.

Between progressive tax rates and available exemptions, this article aims to decode the intricacies of Turkish tax legislation and provide valuable tips for expatriates, whether they’re newcomers to the country or long-term residents.

Navigating the Turkish Tax System

The Turkish tax system is based on a centralized structure with national taxes, without local income taxation. It applies to both residents and non-residents, with each category having specific obligations.

Main Types of Taxes Applicable to Expatriates:

• Income Tax (Gelir Vergisi)
• Corporate Tax (Kurumsal Vergi)
• Property Tax (Emlak Vergisi)
• VAT (KDV)
• Withholding Tax on Dividends and Certain Financial Income

Tax Type	Rate/Method (2025)	Key Considerations
Income Tax	15% to 40% (progressive)	Residents: on worldwide income; Non-residents: on Turkish-source income
Corporate Tax	25%	On profits of local and foreign companies
Property Tax	Varies by property type and value	Payable twice annually; possible reductions for eco-friendly buildings
VAT	Standard: 20%, Reduced: 10%, Super-reduced: 1%	Depends on nature of goods/services
Dividend Withholding	15%	On distributions to shareholders

Tax Residency Criteria:

• Anyone staying more than six months in Turkey during a calendar year is considered a tax resident.
• Tax residents are taxed on their worldwide income.
• Non-residents are taxed only on their Turkish-source income (salaries, rental income, capital gains, etc.).

Current Tax Rates (2025) for Individuals:

Annual Taxable Income (TRY)	Tax Rate
Up to 158,000	15%
158,001 – 330,000	20%
330,001 – 1,200,000	27%
1,200,001 – 4,300,000	35%
Over 4,300,000	40%

Example: An expatriate earning 500,000 TRY in annual salary will pay approximately 104,000 TRY in tax, representing an effective rate of 20.8%.

Corporate Tax Rates:

• 25% on annual net profit.
• VAT applicable according to the nature of operations.

Practical Tips for Navigating the Turkish Tax System:

• Meet deadlines: Income tax returns due before March 31 (individuals), April 30 (corporations).
• Use official platforms: The e-Devlet portal allows filing, payment, and tax consultation online, including for non-residents.
• Keep your status updated: Address changes, property acquisition/sale, and residency status changes must be reported promptly.
• Consult tax advisors: Many firms offer specialized services for expatriates, particularly for tax optimization, managing filing obligations, and avoiding double taxation.

Real-World Scenarios:

A tax resident expatriate receiving salary in Turkey and rental income from France must declare and pay tax on all worldwide income in Turkey, while requesting a tax credit or exemption according to the tax treaty between the two countries.

A non-resident receiving only rental income from an apartment in Istanbul will be taxed on this income solely in Turkey.

Double Taxation Agreements:

Turkey has signed tax treaties with over 80 countries to avoid double taxation, typically allowing foreign-paid taxes to be credited or granting partial exemptions depending on income type.

It’s crucial to verify the applicable treaty and keep documentation of taxes paid in each country.

Useful Resources for Expatriates:

• e-Devlet Portal for all online procedures.
• Accounting and tax advisory firms specializing in foreigner assistance.
• Embassy and consulate information services for nationality-specific advice.

Key Takeaways:

Navigating Turkish taxation requires diligence, planning, and access to specialized resources to avoid costly mistakes and optimize your situation according to your expatriate status.

Decoding Tax Declarations for Expatriates

Decoding Tax Declarations for Expatriates Residing in Turkey

Tax Residency and Tax Liability

• Is considered a tax resident in Turkey any person:

• With legal domicile (primary permanent residence) in Turkey.
• Or staying more than 183 days per year, even non-consecutive, in Turkish territory.

Tax residents are taxed on all worldwide income.

Non-residents are taxed only on Turkish-source income (local salaries, rental income from Turkish real estate, dividends from Turkish companies, etc.).

Applicable Rates and Income Tax Brackets (2025)

Annual Income Bracket (TRY)	Tax Rate
Up to 110,000	15%
110,001 to 230,000	20%
230,001 to 580,000	27%
580,001 to 3,000,000	35%
Over 3,000,000	40%

The brackets apply equally to resident expatriates and Turkish citizens.

Income Tax Declaration and Payment

Income declarations must be filed each year in March for income received the previous year.

For the 2024 tax year, the declaration period runs from March 1 to 31, 2025.

Declarations can be made online through the official Turkish tax services portal (www.gib.gov.tr).

Payment: generally in two installments, in March and July.

Specific Obligations for Foreign Property Owners

Expatriates owning real estate in Turkey must pay property tax (“emlak vergisi”).

This tax is calculated on the cadastral value of the property:

• For residential properties: 0.1% to 0.2% of cadastral value annually depending on location (city or rural area).
• For commercial properties: 0.2% to 0.4% annually.

Declarations and payments are made to the municipality where the property is located, typically in two installments (May and November).

Exemptions, Reductions, and Tax Treaties

Turkey has signed over 85 double taxation avoidance agreements, preventing double taxation of income for many expatriates.

Certain exemptions or reductions exist, particularly for:

• Retirees receiving pensions from abroad (often exempt in Turkey but mandatory declaration required).
• New investors or property buyers in certain strategic projects.
• Income that has already undergone final withholding tax in Turkey may sometimes be excluded from annual declarations.

Penalties for Non-Compliance

• Financial penalties up to 50% of amount due.
• Late payment interest and risk of administrative blocks (enforcement, travel bans for significant tax debts).

Practical Tips for Expatriates

• Systematically keep all proof of income and tax payments.
• Get assistance from a certified accountant (“Yeminli Mali Müşavir” or “Serbest Muhasebeci Mali Müşavir”) for your first declaration or in complex situations.
• Verify the existence of a double taxation agreement between Turkey and your home country.
• Use the digital tools of the Turkish tax administration, which offer online declaration and payment, access to tax documents, and tracking of procedures.

Resources and Support

• Official Turkish Tax Administration Portal: www.gib.gov.tr
• International accountants and tax specialists specializing in expatriate assistance.
• Embassies and consulates providing general information on local taxation.
• Payroll service platforms and French-speaking accounting firms in Turkey.

Important Note
Turkish tax legislation evolves regularly, particularly concerning high incomes and freelancers. It’s advisable to check annually for any reforms impacting expatriate taxation.

Essential Tax Tips for Expatriates in Turkey

Tax Optimization Strategies Compliant with Turkish Legislation:

• Verify your tax status annually (resident or non-resident), as it determines the scope of your taxation: a Turkish tax resident is taxed on worldwide income, while a non-resident is taxed only on Turkish-source income.
• Take advantage of international tax treaties to avoid double taxation. Turkey has signed numerous agreements allowing, depending on the case:
  • Tax credit application: foreign-paid taxes are deducted from Turkish tax due.
  • Exemption: income taxed in another country may be exempt from Turkish tax.
• Concrete example: A French expatriate working in Turkey pays taxes locally and also declares income in France. Thanks to the Franco-Turkish treaty, they avoid being taxed twice on the same income.
• Correctly declare foreign income if you’re a Turkish tax resident. Foreign income must be included in your annual declaration and supported by foreign tax payment certificates, tax residency certificates, etc.
• Optimize through eligible investments: Certain investment forms, particularly in new real estate or innovative sectors, may qualify for exemptions or tax relief under specific conditions.
• Concrete example: An expatriate investing in new rental housing may benefit from property tax reductions depending on the region and property type.
• Compare tax rates between Turkey and your home country to choose the most advantageous tax residency based on your profile (employee, freelancer, retiree).

Summary Table of Tax Benefits and Access Conditions

Tax Benefit	Application Conditions	Usage Example
Tax Credit or Exemption	Tax treaty signed between Turkey and home country	French employee in Turkey, income declared in both countries
Exemption on Certain Income	Specific investments, well-defined tax residency	Purchase of new real estate in Istanbul
Progressive Tax Rate	Application on all worldwide income for tax residents	Freelancer with varying annual income

Practical Tips for Compliance and Tax Management:

• Keep all supporting documents: tax payments, contracts, property titles, foreign tax notices, tax residency certificates.
• Meet declaration deadlines: for example, annual declarations must be filed before March 25 of the following year.
• Seek support from a bilingual accountant or tax lawyer to assist with procedures and optimize your situation.
• Maintain rigorous accounting of all income and investments, local and international, to respond to potential tax audits.

Professional Services and Useful Resources for Expatriates:

• Local tax advisors specializing in international taxation
• Franco-Turkish associations offering workshops and conferences on taxation
• Banks and advisory firms offering “newcomer packages” including personalized tax advice

Examples of Concrete Actions to Take:

• Open a preferential-rate savings account in Turkey to optimize cash management.
• Use specialized platforms to compare international transfer fees and avoid hidden costs.
• Request a Turkish tax residency certificate to benefit from tax treaties.

To fully benefit from tax advantages in Turkey, plan ahead, document every procedure, and get assistance from local specialists