Taxation of Non-Residents in Turkey: Filing Requirements

Published on October 4, 2025 and written by Cyril Jarnias

Turkey, with its strategic position between Europe and Asia, attracts numerous international investors and expatriates eager to leverage its economic dynamism. However, relocating or investing as a non-resident in this country requires a precise understanding of its specific tax regulations.

Navigating through declaration obligations can prove complex, and it is essential for non-residents to familiarize themselves with the rules in force to avoid penalties.

This article aims to explore in detail the requirements that Turkey imposes on foreign taxpayers, offering an essential guide for those seeking to optimize their tax situation while complying with local legislation.

Taxation for Non-Residents in Turkey: What You Need to Know

Non-residents in Turkey are taxed only on their Turkish-source income, meaning income generated or received within the country.

Types of Income Subject to Tax for Non-Residents

• Salaries paid by a Turkish company.
• Rental income from real estate located in Turkey.
• Business and professional profits from activities conducted within Turkish territory.
• Dividends and interest paid by Turkish companies or financial institutions.
• Capital gains realized from the sale of assets located in Turkey.

Applicable Tax Rates (2025)

Type of Income	Rate Applied to Non-Residents
Salaries	15% to 40% (progressive scale)
Rental Income	15% to 40% (progressive scale)
Dividends	Withholding at source: 15%
Bank Interest	Withholding at source: 10%-15%
Real Estate Gains	Variable based on holding period

Possible Exemptions

Certain types of income may benefit from an exemption or reduction, particularly under international double taxation treaties.

Dividends, interest, and royalties may be taxed at a reduced rate if a tax treaty is applicable between Turkey and the non-resident’s country.

International Agreements to Avoid Double Taxation

Turkey has numerous bilateral agreements allowing non-residents to avoid double taxation. These treaties generally provide for:

• Credit or partial/total exemption for taxes paid in another contracting state.
• Caps on applicable rates for certain types of income such as dividends, interest, or royalties.

Specific Declaration Obligations

Non-residents must declare only their income generated in Turkey to the local tax authorities via an annual return (“Gelir Vergisi Beyannamesi”).

Withholdings at source by local companies often serve as an advance on the tax due; however, it remains mandatory to file a return if multiple sources exist or if no withholding has been made.

Penalties for Non-Compliance

Failure to file or late filing may result in:

• Financial penalties proportional to the undeclared amount
• Late payment interest charges
• Enhanced tax audits potentially leading to legal proceedings

Practical Examples Illustrating These Obligations

1. A French investor owns an apartment rented in Istanbul. They must annually declare their rental income and pay the progressive scale tax after deducting allowable expenses.
2. A German consultant occasionally performs assignments for a Turkish company from their home country but invoices their service with the place of performance declared as “Turkey.” They will be taxed locally on this professional income—unless otherwise provided by the bilateral agreement between Germany and Turkey.
3. A Belgian retiree receives only their pension from Brussels but also holds an interest-bearing bank account at Akbank Istanbul. Only their locally generated interest will be subject to Turkish withholding tax; their foreign pension remains outside the tax scope as long as they remain non-resident (183 days). You risk automatic statutory change to “tax resident” with full obligation on your worldwide income!

For any complex arrangements involving multiple local sources/channels, it is strongly advised to seek advice from a certified accountant to ensure optimal regulatory compliance.

Declaration Obligations for Non-Resident Expatriates in Turkey

Non-resident expatriates in Turkey are subject to specific tax obligations that differ significantly from those of tax residents. Non-residents are taxed only on their Turkish-source income: salaries from a Turkish company, rents from real estate located in Turkey, dividends from Turkish companies, etc.

Required Declarations and Tax Thresholds:

• Turkish-source income declaration:
  Non-residents must declare only income generated in Turkey.
  Example: an expatriate receiving rent from an apartment in Istanbul must declare it in Turkey, even if they reside outside the country.
• Worldwide income declaration:
  Not applicable to non-residents. Only tax residents (physical presence >183 days or primary domicile in Turkey) must declare their worldwide income.
• Thresholds:
  All Turkish-source income must be declared, without a specific threshold, as long as it has not already been subject to a final withholding tax.

Summary Table of Declaration Obligations:

Tax Status	Income to Declare	Declaration Required	Thresholds
Tax Resident	Worldwide Income	Yes	No threshold
Non-Resident	Turkish Income Only	Yes	No threshold

Filing Deadlines:

The annual income tax return must generally be filed between March 1 and March 31 of the year following the income receipt.

Tax payment is made in two installments: in March and July.

Penalties for Non-Compliance:

Late filing or omission: flat-rate fines proportional to the undeclared amount.

Late payment interest is applied to the tax due.

In case of proven fraud, aggravated penalties and legal proceedings may be initiated.

Double Taxation Agreements:

Turkey has signed numerous agreements to avoid double taxation (e.g., France, Germany, Switzerland, Canada).

These treaties determine which country has the right to tax each type of income and generally provide for tax credit or exemption mechanisms to prevent the same income from being taxed twice.

Concrete Examples:

A French retiree living outside Turkey, receiving a French pension and rents from an apartment in Antalya, will be taxed in Turkey only on the rents, not on the pension (exempt if a treaty is in force).

An expatriate employee working for a Turkish company, residing less than 183 days/year in Turkey, must declare their salary received in Turkey but not their other foreign income.

Practical Tips for Compliance:

• Obtain a Turkish tax number (Vergi Numarası) for all procedures.
• Check for a tax treaty between Turkey and your country of residence to avoid double taxation.
• Keep all proof of income and withholdings at source.
• Update any change in status with Turkish authorities (address, marital status, activity).
• In case of doubt, consult a local tax advisor to secure your situation.

Key Takeaways

Non-residents in Turkey are taxed only on their Turkish-source income. They must respect declaration deadlines, verify tax treaties, and ensure all status changes are reported to the authorities.

How to Avoid Double Taxation in Turkey

Definition of Double Taxation

Double taxation refers to the situation where the same income is taxed twice in different countries: once in the country where the income is generated (source country), and a second time in the beneficiary’s country of residence. This issue particularly concerns non-residents in Turkey, as their foreign or local-source income may be subject simultaneously to Turkish tax and the tax of their home country, impacting their profitability and tax compliance.

Importance for Non-Residents in Turkey

• Avoid excessive tax burden on the same income.
• Facilitate international investments and professional mobility.
• Ensure tax fairness between residents and non-residents.

International Tax Conventions Signed by Turkey

Turkey has concluded over 85 bilateral double taxation treaties with states such as France, Germany, Belgium, Luxembourg, Canada, the United Kingdom, and the United States. These treaties aim to:

• Specify which state has the right to tax each type of income.
• Prevent tax evasion.
• Ensure fair treatment between national and foreign residents.

Types of Income Generally Covered
Salaries
Pensions
Dividends
Bank Interest
Rental Income
Business Profits
Real Estate Capital Gains

Mechanisms Provided by These Conventions

The main mechanisms to avoid or mitigate double taxation are:

Tax Credit:

Tax paid abroad is deducted from the tax due in Turkey on the same income.

Exemption:

Income taxed in another state is not subject to Turkish tax again.

Example: A French expatriate working in Turkey will pay taxes locally but can declare their income in France without effective double taxation thanks to credit or exemption.

Steps to Benefit from Anti-Double-Taxation Mechanisms

1. Verify if a treaty exists between your country of residence/primary taxation and Turkey.
2. Precisely identify your relevant income types (local/Turkish salaries, foreign dividends…).
3. Collect necessary supporting documents:
   • Official certificate of effective tax payment in each jurisdiction
   • Tax/residence certificate issued by your tax administration
   • Certified copies of foreign tax notices
4. Correctly complete your tax returns according to each national legislation (example: mandatory annual declaration even if exemption is obtained).
5. Submit all supporting documents to Turkish tax authorities during the annual filing so they apply credit/exemption in accordance with international agreements.
6. Retain all documents for several years in case of future tax audit.

Practical Tips for Working with a Tax Advisor in Turkey

• Choose a firm that has already handled international cases similar to yours (non-residence/expatriation/foreign investment).
• Systematically request a personalized analysis considering:
  • Your overall family/tax situation,
  • Your exact income sources,
  • Applicable treaties for each relevant financial flow,
  • And potential risk related to recent local/international legislative changes.

Practical tip: Always request written confirmation before any important procedure with local authorities.

Useful Resources on International/Non-Resident Taxation in Turkey

• Official website of the Turkish Ministry of Finance (« Gelir İdaresi Başkanlığı »)
• Specialized portals on international payroll
• Embassies/consulates providing updated legal information
• Local specialized firms/French-speaking contacts recommended by expatriate professional networks

For any specific, complex, or atypical questions (multiple nationalities/multiple sources/mixed income), it is highly recommended to obtain individualized advice from an experienced professional mastering both local and international tax law.