Türkiye guide · Facts checked 19 October 2026
Tax Basics in Türkiye for Individuals and Companies
Türkiye taxes residents on worldwide income at 15% to 40% (2026). Residency rules, rental exemption, corporate tax, VAT, property taxes, tax ID and treaties.
Türkiye taxes its tax residents on their worldwide income and non-residents only on income earned in Türkiye. In 2026, individuals pay progressive income tax from 15% to 40%, most companies pay 25% corporate income tax, VAT is charged at 20%, 10% or 1%, and buying property costs a 4% title-deed fee plus a low annual property tax. This page is general information only: rules and amounts change every year, so check your own position with an independent Turkish chartered accountant (SMMM) or tax adviser.
Key facts
| Item | Position (2026) |
|---|---|
| Individual tax residency | Domicile in Türkiye, or a continuous stay of more than six months in a calendar year |
| Personal income tax | Progressive 15% to 40%; top rate above TRY 5.3 million |
| Residential rental exemption | TRY 58,000 for 2026 income, subject to conditions |
| Corporate income tax | 25%; 30% for banks and financial firms; 12.5% on manufacturing income from 2027 (Law 7582) |
| VAT (KDV) | 20% standard; reduced rates of 10% and 1% |
| Dividend withholding | 15% since 22 December 2024; 10% cap under the mainland China treaty |
| Title-deed fee on purchase | 4% of the declared value (by law 2% buyer + 2% seller) |
| Annual property tax | About 0.1% of the assessed value for homes, 0.2% in metropolitan municipalities |
| Annual income tax return | Filed in March for the previous year |
Who is a Turkish tax resident?
Under the Income Tax Law (Law No. 193), an individual has full tax liability if either:
- their legal domicile (ikametgâh) is in Türkiye, or
- they stay in Türkiye continuously for more than six months within one calendar year; temporary trips abroad do not break the continuity.
The law excludes some people even if they stay longer: those who come for a specific, temporary assignment (such as business people, scientists, experts, officials and journalists), those who come for education, medical treatment, rest or travel, and those held in Türkiye by circumstances beyond their control such as detention or illness.
Residents report worldwide income; non-residents (limited liability) are taxed only on Turkish-source income such as Turkish rent or salary. A residence permit, title deed or Turkish passport does not by itself decide the question, and you may remain a tax resident elsewhere at the same time. Where two places both treat you as resident, the relevant tax treaty's tie-breaker rules apply. Our article on Turkish tax residency for Chinese citizens goes further.
Personal income tax in 2026
The bands are revalued every January. The 2026 tariff treats wages slightly differently from other income:
| Rate | Non-wage income (rent, business, etc.), TRY | Wage income, TRY |
|---|---|---|
| 15% | Up to 190,000 | Up to 190,000 |
| 20% | 190,000 to 400,000 | 190,000 to 400,000 |
| 27% | 400,000 to 1,000,000 | 400,000 to 1,500,000 |
| 35% | 1,000,000 to 5,300,000 | 1,500,000 to 5,300,000 |
| 40% | Above 5,300,000 | Above 5,300,000 |
Salaries are taxed through monthly payroll withholding. Whether you must also file an annual return depends on your mix of income and the thresholds for that year.
Rental income
For 2026 income, the first TRY 58,000 of residential rent is exempt. The exemption covers homes only, not commercial premises. It is not available to anyone who must file a return for business, agricultural or professional income, or whose total income from wages, rent and similar sources exceeds a ceiling set in the law, and it is lost if the rent is not declared or is under-declared. Rent above the exemption, after allowable expenses, is taxed at the progressive rates above and declared in the March return, including by non-residents who own Turkish property.
Company taxes
- Corporate income tax: 25% in 2026; 30% for banks and financial firms; from 2027, 12.5% on manufacturing income under Law 7582. A 10% domestic minimum corporate tax also applies, with new companies exempt for their first three accounting periods.
- VAT (KDV): 20% standard rate, with 10% and 1% for listed goods and services; returns are filed monthly.
- Dividend withholding: 15% on dividends paid to individuals and non-residents since 22 December 2024, reduced where a treaty sets a lower cap.
- Other: payroll taxes and social security (SGK) contributions, and stamp duty on certain contracts.
Bookkeeping, VAT returns and the year-end corporate return are handled by a licensed SMMM, who is engaged directly by the company. See our company registration service for how the first-year setup fits together.
Property taxes
- Title-deed fee (tapu harcı): 4% of the declared value on transfer, 2% each for buyer and seller by law, although buyers often pay the full 4% by agreement.
- VAT on new builds: a purchase from a VAT-registered developer may carry 1%, 10% or 20% VAT; first sales to non-resident foreigners paid in foreign currency brought from abroad can be exempt (VAT Law Article 13/i).
- Annual property tax (Emlak Vergisi): charged by the municipality under the Property Tax Law (Law No. 1319) at 0.1% of the assessed tax value for homes, 0.2% for other buildings and 0.3% for building plots; within metropolitan municipalities the rates double. It is paid in two instalments, in spring and in November.
- Selling: a gain on selling property can be taxable as income, depending on how long you held it and when you acquired it; check before you agree a sale.
Our real estate service builds these costs into a written budget before any commitment, and this comparison sets them against China's.
Inheritance and gift tax
Transfers by inheritance or gift are taxed under the Inheritance and Transfer Tax Law (Veraset ve İntikal Vergisi, Law No. 7338). Property located in Türkiye falls within its scope even when the heirs are foreign. Rates are progressive and lower for inheritance than for gifts, exemption amounts are revalued each January, and the tax can be paid in instalments. Cross-border estates involving mainland China or Hong Kong usually need advisers on both sides.
Double tax treaties
| Place | Treaty status | Notes |
|---|---|---|
| Mainland China | Signed 23 May 1995; applied since 1 January 1998 | Dividend withholding capped at 10% |
| Hong Kong SAR | Signed 24 September 2024; in force 30 January 2026; applies from 2027 | Dividend withholding 5% or 10% depending on shareholding; interest and royalties generally 10% |
| Singapore | Signed 9 July 1999; in force since 27 August 2001 | Check the treaty text for specific rates |
| Malaysia | Signed 27 September 1994; in force | Check the treaty text for specific rates |
For Hong Kong tax, the new agreement applies to years of assessment beginning on or after 1 April 2027. Treaty relief usually requires a certificate of tax residence from your home tax authority and is subject to beneficial-ownership and anti-abuse tests. For structuring questions, see our investment advisory service.
Tax ID and filing deadlines
Getting a tax ID number as a foreigner
Foreigners need a tax number (vergi kimlik numarası) to open a bank account, buy property, sign utility contracts or set up a company. Without a Turkish ID number, you can obtain a free "potential" tax number with your passport through the Revenue Administration's (GİB) online application for foreigners or at any tax office. Once you hold a residence permit, your 11-digit foreigner ID number beginning with 99 is generally used as the tax number. Getting a tax number does not make you a tax resident.
Filing deadlines
- Individuals: the annual income tax return for the previous year is filed in March, and the tax is paid in two instalments, in March and July. Simple returns, such as rental income, can be filed online through GİB's pre-filled return system (Hazır Beyan).
- Companies: VAT and withholding returns are generally monthly, and the annual corporate tax return is filed in April for calendar-year companies.
Frequently asked questions
Does buying property or getting a residence permit make me a Turkish tax resident?
Not by itself. Residency depends on having your domicile in Türkiye or staying more than six continuous months in a calendar year, not on the documents you hold.
Do I pay tax on rent from my apartment in Türkiye?
Yes, above the exemption. For 2026 income the first TRY 58,000 of residential rent is exempt if you meet the conditions, and the rest is taxed at 15% to 40% through the March return.
When is the Turkish personal tax return due?
In March of the following year. The tax due is paid in two instalments, in March and July.
How much tax does a Turkish company pay on profits and dividends?
Generally 25% corporate income tax in 2026, then 15% withholding when dividends are paid to individuals or non-residents. Treaties can reduce the withholding, for example to 10% for a mainland Chinese parent.
Does Türkiye have tax treaties with mainland China and Hong Kong?
Yes. The mainland China treaty has applied since 1998, and the Hong Kong agreement entered into force on 30 January 2026 and takes effect from 2027.
This page is general information, not legal, tax, immigration or investment advice. Turchina Group is a general advisory brand, not a law firm; for a decision about your own situation, consult an independent licensed professional. This guide is maintained by the Turchina Group editorial team. How we write and correct it: editorial policy.