Tax for foreigners in Turkey
Tax for foreigners in Turkey: your obligations
Choose the type of income or asset and how long you stay in Turkey each year. You will see the main tax obligations.
General overview; rates and exemptions change every year and should be checked with a licensed accountant.
Tax for foreigners in Turkey: rent, property sales and companies
Tax for foreigners in Turkey depends on whether the person is tax resident in Turkey. Under the Income Tax Law No. 193, someone who stays in Turkey for more than six continuous months in a calendar year may become tax resident; everyone else is taxed only on income earned in Turkey. Typical obligations are the annual return for rental income, tax on gains from selling a property within five years, and the annual property tax. Double tax treaties must also be taken into account.
Tax for foreigners in Turkey: resident or not?
Tax residence is not the same as a residence permit from the Migration Administration. The key test is a continuous stay of more than six months in a calendar year. There are exceptions for temporary stays for a specific purpose, such as a particular assignment, medical treatment or travel.
- Full tax liability: worldwide income is taxed, subject to the double tax treaty
- Limited tax liability: only income earned in Turkey is taxed, such as rent or gains from Turkish property
The tax number as a starting point
Foreigners need a Turkish tax number (vergi kimlik numarası) to buy property, open a bank account, set up a company and file any tax return. How to obtain it is explained in Turkish tax number for foreigners.
Tax on rental income
- Rental income from a property in Turkey is taxable in Turkey, also for non-residents.
- The annual return is filed in March of the following year.
- Residential rent is exempt up to an amount set every year.
- Rent payments should be made through a bank.
Tax when selling a property
If a property is sold within five years of acquisition, the gain is subject to income tax after inflation adjustment and the annual exemption. After five years, the capital gain of an individual is as a rule not subject to income tax. It is important that the real purchase price was declared at the Land Registry; see buying property in Turkey as a foreigner.
Annual property tax
Owners pay the annual property tax (emlak vergisi) to the municipality where the property is located. The first declaration is made in the year after the purchase; payment is made in two instalments. Unpaid property tax can cause problems when the property is sold later.
Company taxes and dividends
- Corporate tax and value added tax (KDV)
- Monthly and quarterly returns through a licensed accountant
- Withholding tax on dividends paid to foreign shareholders, subject to the double tax treaty
- Stamp tax on many contracts; see commercial contract drafting
- For incorporation see foreign-owned company setup
Double tax treaties
Turkey has double tax treaties with many countries. They determine which country may tax rent, capital gains and dividends and how tax paid in the other country is credited. Obligations in your home country remain and should be coordinated with a local adviser there.
Frequently asked questions about tax for foreigners
Do I pay tax on rent if I do not live in Turkey?
Yes. Rental income from a property in Turkey is taxable in Turkey.
Is a sale after five years tax-free?
For individuals, the capital gain after five years is as a rule not subject to income tax.
Where do I pay property tax?
To the municipality where the property is located, in two annual instalments.
When do I become tax resident in Turkey?
As a rule after a continuous stay of more than six months in a calendar year, subject to the statutory exceptions.
Official sources and related pages
This guide is based on the official legislation of the Republic of Türkiye and was last updated on .
This page provides general information and is not a substitute for legal advice on a specific case. No particular outcome of any application or proceeding is promised.
Skyland İstanbul, Huzur, Azerbaycan Cd. No:4 A Blok Kat:26 No: 580, 34773 Sarıyer/İstanbul
+90 532 276 80 85
7 days a week, 24 hours