Taxes in Türkiye for Foreign Nationals in 2026

Foreign nationals in Türkiye do not pay a special tax simply because they are foreigners. Taxes arise from specific activities: living in the country, earning income, purchasing property, renting out real estate, selling assets, operating a business, owning a vehicle, registering a mobile phone, or receiving property through inheritance.

The Turkish tax system focuses not on nationality but on a person's connection to Türkiye. If there is income from a Turkish source, taxation becomes relevant. If there is long-term residence, tax residency may become an issue. If a person owns property, a vehicle, or a business, regular tax obligations may arise.

Tax Status: Resident or Non-Resident

Türkiye recognizes two categories of tax liability:

Full Tax Liability

A person is considered a Turkish tax resident. Türkiye may take into account both Turkish and foreign-source income.

Limited Tax Liability

A person is considered a non-resident and generally pays Turkish taxes only on income derived from Turkish sources.

A practical guideline is the 183-day rule. If a foreign national lives in Türkiye for more than half of the calendar year, tax residency should be carefully evaluated.

A residence permit alone does not automatically create tax residency. However, long-term residence, housing, family ties, business activities, and banking relationships strengthen a person's connection to Türkiye.

Citizenship is not the determining factor. If income is connected to Türkiye, the Turkish tax authorities focus on the source of income, supporting documents, payments, and timing.

Tax Identification Number

The Turkish Tax Number (Vergi Numarası) is often one of the first administrative requirements for foreigners.

Without it, it is difficult to:

• Purchase property

• Open a bank account

• Pay official fees

• Register a mobile phone

• Purchase a vehicle

• Establish a company

• Submit tax declarations

A tax number does not make someone a tax resident. It is simply an administrative identifier used to track transactions, declarations, payments, and penalties.

Personal Income Tax

Personal income tax in Türkiye is called Gelir Vergisi.

It applies to:

• Employment income

• Rental income

• Professional services

• Business activities

• Certain investment income

• Capital gains

In 2026, the progressive tax rates are:

• 15%

• 20%

• 27%

• 35%

• 40%

Income is taxed progressively, meaning only the portion falling within each bracket is taxed at that rate.

General Income Tax Brackets (2026)

• Up to 190,000 TL: 15%

• 190,000 TL – 400,000 TL: 20%

• 400,000 TL – 1,000,000 TL: 27%

• 1,000,000 TL – 5,300,000 TL: 35%

• Above 5,300,000 TL: 40%

Employment Income Tax Brackets (2026)

• Up to 190,000 TL: 15%

• 190,000 TL – 400,000 TL: 20%

• 400,000 TL – 1,500,000 TL: 27%

• 1,500,000 TL – 5,300,000 TL: 35%

• Above 5,300,000 TL: 40%

Income received in Türkiye often becomes visible to the tax authorities quickly, especially when payments are linked to Turkish bank accounts, Turkish property, Turkish clients, or Turkish companies.

Salaries, Remote Work, and Freelancing

When employed by a Turkish company, taxes and social security contributions are generally withheld by the employer.

Remote work is more complex. A foreign national may live in Türkiye while working for a foreign company. In such cases, factors such as tax residency, income source, contractual arrangements, location of work, and double taxation treaties become relevant.

Freelancers should not assume that foreign-source payments automatically avoid Turkish taxation. If services are regularly performed while residing in Türkiye, tax declarations, VAT obligations, social security contributions, and business registration requirements may arise.

Taxes When Purchasing Real Estate

The primary tax-related cost when purchasing property is the Title Deed Transfer Tax (Tapu Harcı).

The standard rate is:

• 2% paid by the buyer

• 2% paid by the seller

The total rate is therefore 4% of the declared property value.

Although parties often agree that the buyer pays the entire amount, the legal structure of the tax remains shared between both parties.

The declared value cannot be lower than the property's official tax value.

Underreporting the purchase price may seem attractive initially but can create future tax issues, particularly when calculating capital gains upon resale.

VAT on Property Purchases

Turkish VAT is known as KDV.

VAT does not apply to every property transaction.

Typically No VAT

When a private individual sells a used residential property to another private individual outside a commercial context.

VAT May Apply

When the seller is:

• A developer

• A construction company

• A commercial entity

For residential properties with building permits issued on or after April 1, 2022:

• Up to 150 m² net area: 10% VAT

• Above 150 m²: 10% on the first 150 m² and 20% on the excess area

Commercial properties are generally subject to:

• 20% VAT

Urban transformation projects under Law No. 6306 may qualify for reduced rates.

Annual Property Tax

Property owners pay Emlak Vergisi (Property Tax) regardless of nationality.

Standard rates:

• Residential buildings: 0.1%

• Other buildings: 0.2%

• Land: 0.1%

• Development plots: 0.3%

Within metropolitan municipalities, these rates are generally doubled.

The tax is calculated using the property's official tax value rather than its market value.

Payments are typically made in:

• May

• November

Luxury Residential Property Tax

Değerli Konut Vergisi (Valuable Housing Tax) applies to high-value residential properties.

In 2026, the threshold is:

17,711,000 TL

The threshold is based on the property's tax value, not its market value.

Tax on Rental Income

Rental income generated from property in Türkiye is taxable, including for non-resident owners.

For residential rentals in 2026:

58,000 TL annual exemption

If annual rental income exceeds this amount, a tax declaration is generally required.

Tax is not calculated simply on gross rent received.

Owners may choose between:

• A standard 15% expense deduction

• Actual documented expenses

Once the standard deduction method is selected, Turkish tax rules generally prevent switching to the actual expense method for two years.

Rental payments should be made through the banking system.

Cash payments create risks because they leave little documentary evidence and may cause tax compliance problems.

Short-term rentals are also taxable. Owners must account for and declare income generated through platforms such as Airbnb and similar booking services.

Free Use of Property

Property owners cannot always avoid taxation by claiming they received no rent.

If a property is provided free of charge or at an artificially low rent, the tax authority may apply an imputed rental value.

Where no official rental valuation exists, the deemed annual rental income is generally calculated as:

5% of the property's tax value

Example:

Property tax value: 7,500,000 TL

Deemed annual rental income:

7,500,000 × 5% = 375,000 TL

Exceptions exist for close relatives such as:

• Parents

• Grandparents

• Children

• Grandchildren

• Siblings

Tax on Property Sales

If an individual sells property within five years of purchase, Capital Gains Tax (Değer Artış Kazancı) may apply.

For 2026:

Exemption amount: 150,000 TL

If taxable gains exceed this threshold, the excess is taxed using the progressive income tax rates.

The gain is not simply calculated as the difference between purchase and sale price. Inflation adjustments, acquisition dates, sale dates, and documented expenses may affect the calculation.

In general, property sold after five years of ownership is exempt from capital gains taxation for individuals.

However, frequent property transactions may be treated as commercial activity.

Vehicles: MTV and ÖTV

Two different taxes apply to vehicles:

MTV (Motor Vehicle Tax)

An annual ownership tax.

The amount depends on:

• Vehicle type

• Age

• Engine size

• Technical specifications

• Vehicle value

ÖTV (Special Consumption Tax)

Applied when:

• A new vehicle is sold for the first time

• A vehicle is imported into Türkiye

For used vehicles, ÖTV is generally not charged again because it was paid when the vehicle first entered circulation.

For passenger vehicles with engines up to 1,600 cc, ÖTV rates may range from:

45% to 80%

For larger engines, rates can be significantly higher and may reach:

220%

Electric vehicles have a separate taxation structure.

Mobile Phones Imported from Abroad

Foreign-purchased phones must be registered for continued use in Turkish mobile networks.

In 2026, the IMEI registration fee is:

54,258 TL

After payment, registration must be completed through e-Devlet.

Given the size of the fee, importing a phone is often no longer financially advantageous.

Mobile Communication Tax

When opening a new mobile line in Türkiye, a fixed Special Communication Tax (Özel İletişim Vergisi) applies.

In 2026:

700 TL

Additional taxes are generally embedded in mobile service charges.

Taxes Embedded in Daily Expenses

Foreigners pay taxes every day, even without filing declarations.

VAT and other indirect taxes are included in the prices of:

• Goods

• Services

• Fuel

• Electronics

• Alcohol

• Tobacco

• Vehicles

Consumers typically see only the final price, while businesses deal with the underlying tax calculations and reporting obligations.

Business Taxes in Türkiye

Foreign nationals operating a business in Türkiye face ongoing tax obligations.

The standard corporate income tax rate in 2026 is:

25%

For banks, insurance companies, payment institutions, financial companies, and certain other sectors:

30%

Some income categories, such as exports, may benefit from reduced rates under specific conditions.

Provisional Tax

Businesses do not wait until year-end to calculate taxes.

Türkiye applies a Provisional Tax (Geçici Vergi) system.

For individuals subject to income tax:

15% provisional tax

For companies:

25% provisional tax

unless a special regime applies.

VAT for Businesses

The standard VAT rate is:

20%

Reduced rates:

• 10%

• 1%

Businesses collect VAT from customers and offset it against VAT paid to suppliers.

Only the difference is paid to the tax authority.

A common mistake among new entrepreneurs is treating VAT collected from customers as business income.

Withholding Tax

Certain taxes are withheld at source through the Stopaj system.

Examples include:

• Commercial rent payments

• Professional service payments

• Salaries

• Dividends

Businesses must understand when withholding obligations apply.

Employees and Social Security (SGK)

Employers pay more than just salaries.

In 2026, the combined social security burden for a standard employee is approximately:

38.75%

Consisting of:

• 15% employee contribution

• 23.75% employer contribution

Business owners must consider:

• Salaries

• Social security contributions

• Accounting

• Employment documentation

• Annual leave

• Potential severance obligations

Stamp Duty

Damga Vergisi (Stamp Duty) applies to certain documents, declarations, and official transactions.

For individuals it may be occasional.

For businesses it is a recurring administrative cost.

Inheritance and Gift Tax

If a foreign national owns property, vehicles, company shares, or funds in Türkiye, Inheritance and Transfer Tax (Veraset ve İntikal Vergisi) may apply.

Inheritance tax rates in 2026:

1% to 10%

Gift tax rates:

10% to 30%

The first 66,935 TL of gifts is exempt.

Inheritance tax is generally paid over three years in six installments.

Double Taxation Agreements

Türkiye has double taxation treaties with many countries.

These agreements do not eliminate taxation entirely. Instead, they determine:

• Which country has taxing rights

• How tax credits apply

• Where a person is considered a tax resident

Income from real estate is generally taxed in the country where the property is located.

How to Pay Taxes and Fees

Many taxes and fees can be paid online through:

• Digital Tax Office (Dijital Vergi Dairesi)

• e-Devlet

• Banking applications

• Municipal websites

• Tax offices

Businesses generally operate through accountants and electronic reporting systems.

Attempting to run a Turkish company without professional accounting support often leads to costly compliance errors.

Conclusion

Taxes in Türkiye for foreigners depend on activities, not nationality.

Living in Türkiye for more than half the year raises tax residency questions. Renting out property creates rental income. Selling real estate within five years may generate capital gains tax. Operating a business introduces VAT, corporate taxation, social security contributions, accounting requirements, and regular reporting obligations.

The most expensive mistakes usually come not from tax rates themselves, but from misunderstanding how the rules apply. A residence permit holder assumes taxes do not concern them. A landlord rents property without filing declarations. A buyer underreports a purchase price. A business owner treats VAT as profit.

In Türkiye, tax authorities evaluate these situations through documents, dates, declarations, and banking records.