Taxes in Turkey for Foreigners: 2026 Complete Guide

Tax Residency Rules: The 183-Day Threshold

Turkish tax law draws a clear line between residents and non-residents, and it determines everything else about what you owe.

Who is a Turkish tax resident?

You are considered a tax resident of Turkey if you meet either of these conditions:

• You spend 183 or more days in Turkey within a single calendar year. Days of arrival and departure both count. Short trips abroad do not reset the clock; they are simply subtracted from your total.
• Your legal domicile is in Turkey. This means Turkey is your permanent home, where your family lives, where your economic interests are centred, and where you intend to remain. Even if you spend fewer than 183 days in Turkey, you can be deemed resident if the tax authority determines your domicile is Turkish.

In practice, the 183-day rule is the one that matters for most foreigners. If you hold a Turkish residence permit and live in Turkey year-round, you are a tax resident. If you split your time between Turkey and another country, the day count becomes critical.

What does tax residency mean for your income?

Tax residents are taxed on their worldwide income. This includes salary earned in Turkey, rental income from Turkish property, but also income from abroad: dividends from a UK brokerage account, rental income from a flat in Berlin, freelance income paid by an American client. All of it is taxable in Turkey if you are resident.

Non-residents are only taxed on Turkish-sourced income. If you own a rental property in Antalya but live in the UK, you pay Turkish tax on the rental income. But your UK salary, your UK investments and your other worldwide earnings are not Turkey's concern.

The calendar year trap

Turkey counts the 183 days within a calendar year (1 January to 31 December), not a rolling 12-month period. This catches some people out. If you arrive in Turkey in August and stay through the following June, you may have spent only 150 days in Turkey during the first calendar year and 180 in the second, making you non-resident in both years despite living in Turkey for 11 consecutive months. Conversely, if you arrive in February and stay through September, you have spent well over 183 days in that calendar year and are resident.

If you are close to the 183-day threshold and it matters to you, keep a careful log of your entries and exits. Turkish immigration records are thorough and the tax authority can and does cross-reference them.

Income Tax Brackets (2026)

Turkey uses a progressive income tax system, meaning the rate increases as your income rises. You do not pay the higher rate on all your income, only on the portion that falls within each bracket. The 2026 thresholds, updated annually by the Revenue Administration (Gelir Idaresi Baskanligi / GIB), are as follows:

These thresholds are approximate and are adjusted each year based on the revaluation rate (yeniden degerleme orani). Always check the latest figures on the GIB website or use our tax calculator for a personalised estimate.

How the progressive system works in practice

If your annual taxable income is 300,000 TL, you do not pay 27% on the entire amount. Instead, you pay 15% on the first ~110,000 TL (roughly 16,500 TL), then 20% on the next ~120,000 TL (roughly 24,000 TL), and 27% on the remaining ~70,000 TL (roughly 18,900 TL). Your total tax would be around 59,400 TL, giving an effective rate of about 19.8% rather than the marginal rate of 27%.

Employment income (stopaj)

If you are employed by a Turkish company, your employer deducts income tax at source through the stopaj (withholding) system. This is similar to PAYE in the UK or payroll tax in other countries. Your employer calculates the cumulative tax owed on your year-to-date earnings each month and deducts the difference. You receive your net salary and, in most cases, you do not need to file a separate tax return.

However, if you have multiple sources of income, such as a salary plus rental income, or if your total employment income from two or more employers exceeds certain thresholds, you must file an annual return. I cover the filing process in the how to file section below.

Self-employment and freelance income

Freelancers and self-employed professionals (serbest meslek erbabi) are taxed at the same progressive rates but must file quarterly advance tax payments (gecici vergi beyannamesi) and an annual return. If you are working in Turkey on a work permit as a freelancer, or if you run a business, you need a Turkish accountant (mali musavir). This is not optional advice; it is practically essential. The filing requirements, expense deductions and bookkeeping obligations are detailed enough that doing them yourself is a recipe for penalties.

KDV (VAT): Value Added Tax

KDV (Katma Deger Vergisi) is Turkey's value added tax, equivalent to VAT in the UK or EU. It is charged on most goods and services and is almost always included in the displayed price. If you have lived in any European country, the system will feel familiar.

KDV rates in 2026

• 20% - Standard rate. Applies to most goods and services, including electronics, clothing, restaurant meals, professional services, and most retail purchases.
• 10% - Reduced rate. Applies to basic food products, accommodation (hotels, pensions), medical and health services, and some agricultural inputs.
• 1% - Super-reduced rate. Applies to unprocessed agricultural products sold by farmers, newspapers, magazines, and some educational materials.

The standard KDV rate was increased from 18% to 20% in July 2023, and the reduced rate moved from 8% to 10% at the same time. These rates have remained unchanged through 2026.

KDV on property purchases

New-build properties purchased directly from a developer are subject to KDV at rates that vary based on the property size and location. Properties under 150 square metres in most areas attract a 1% KDV rate, while larger or more premium properties may be subject to 10% or 20%. Second-hand property purchases between individuals are KDV-exempt. If you are buying property in Turkey, make sure you understand whether your purchase includes KDV and at what rate.

KDV refunds for tourists

Non-resident visitors can claim KDV refunds on purchases over a certain threshold (currently 2,000 TL per receipt) when leaving Turkey. Look for shops displaying the "Tax Free" logo, ask for a tax-free receipt (KDV iade fisi), and present the goods and receipts at customs before departure. The refund is typically processed at the airport. In practice, the process can be slow and not all shops participate, but for large purchases it is worth the effort.

OTV on Vehicles: Special Consumption Tax

OTV (Ozel Tuketim Vergisi) is the reason cars are so expensive in Turkey. It is a one-off tax levied when a new vehicle is first registered in Turkey, and the rates are among the highest in the world. If you are thinking about buying a car in Turkey, understanding OTV is essential for budgeting.

OTV rates by engine size (2026)

For passenger vehicles, OTV rates are determined by engine displacement (cc) and the base price of the vehicle. The rates for 2026 are:

To put this in perspective: a car with a factory price of 1,000,000 TL and a 2,200cc engine could attract 220% OTV (2,200,000 TL), plus 20% KDV on the combined total (640,000 TL), resulting in a showroom price of 3,840,000 TL. That is nearly four times the base price. Use our car cost calculator to work out the real cost of any vehicle you are considering.

Electric and hybrid vehicles

Electric vehicles (EVs) benefit from significantly lower OTV rates. Fully electric cars with a motor power up to 160 kW currently attract OTV rates between 10% and 60%, depending on the base price. This is a deliberate policy to encourage electric vehicle adoption, and it makes EVs substantially more competitive on sticker price compared to petrol and diesel equivalents.

OTV is only paid once

OTV is levied only when a vehicle is first sold new in Turkey. When you buy a second-hand car, the OTV has already been paid by the original buyer and is baked into the resale value. This is one of the main reasons the second-hand car market is so strong in Turkey: used cars hold their value well because a replacement new car carries the full OTV burden again. Our car buying guide covers this dynamic in detail.

MTV: Annual Vehicle Tax

MTV (Motorlu Tasitlar Vergisi) is an annual road tax paid by all vehicle owners in Turkey. It is separate from OTV and is payable every year for as long as you own a registered vehicle.

How MTV is calculated

MTV rates depend on the vehicle's engine displacement (cc), age and type. Newer and larger-engined vehicles pay more. The tax is set annually by the Ministry of Treasury and Finance and published in the Official Gazette. For a typical mid-range car (1,600cc, 3-6 years old), expect to pay somewhere in the range of 5,000-15,000 TL per year in 2026, though this varies significantly based on the specific bracket your vehicle falls into.

When and how to pay MTV

MTV is paid in two instalments: the first in January and the second in July. You can pay through your bank's online or mobile banking app, at the tax office, via the GIB Interactive Tax Office website, or through the e-Devlet government portal. If you fail to pay on time, interest and penalties accrue automatically. Unpaid MTV can also prevent you from selling your vehicle, as the notary will check for outstanding tax before processing a transfer.

If you buy a car partway through the year, you are responsible for MTV from the date the vehicle is registered in your name. Check e-Devlet or ask at the tax office to confirm your balance.

Property Taxes

If you buy property in Turkey, there are both one-off and ongoing tax obligations to be aware of.

Tapu transfer fee (tapu harci): 4%

When you purchase a property, a 4% title deed transfer fee (tapu harci) is payable to the land registry. By convention, this is typically split equally between buyer and seller at 2% each, though this is negotiable and should be agreed before the sale. The fee is calculated on the declared sale price or the tax value of the property, whichever is higher. Undervaluing the property on the deed to reduce the fee is illegal and carries penalties.

Annual property tax (emlak vergisi)

All property owners in Turkey pay annual property tax to the local municipality. The rates for residential property are:

• 0.1% of the property's tax value in non-metropolitan areas
• 0.2% of the property's tax value in metropolitan municipalities (buyuksehir belediyeleri), which includes Istanbul, Ankara, Izmir, Antalya, Bursa and other major cities

Commercial property is taxed at double these rates (0.2% or 0.4%). The property's tax value is determined by the municipality and is generally well below the market value, so the actual annual payment is usually modest. For a typical apartment in Antalya with a tax value of 2,000,000 TL, you would pay 4,000 TL per year.

Additional property contribution (degerli konut vergisi)

Turkey introduced a high-value property tax (degerli konut vergisi) for residential properties valued above a certain threshold by the Ministry of Environment. The threshold is adjusted annually and was around 12,000,000 TL in recent years. If your property's official valuation exceeds this threshold, an additional progressive tax of 0.3% to 1% applies. Most foreign buyers of standard apartments will not hit this threshold, but owners of luxury villas or prime Istanbul properties should check.

Rental income tax

If you rent out your Turkish property, the rental income is subject to income tax at the standard progressive rates outlined in the income tax section above. There is an annual rental income exemption (around 33,000 TL for 2026, subject to annual revision) below which no tax is due. Above this, you can deduct certain expenses (maintenance, insurance, depreciation) before calculating your taxable rental income. You must file an annual tax return for rental income, even if you are non-resident.

Stamp Duty (Damga Vergisi)

Stamp duty in Turkey applies to a wide range of official documents and contracts. It is charged as a percentage of the document's monetary value and is something you will encounter throughout your time in Turkey, whether you are signing a lease, an employment contract, or a business agreement.

Common stamp duty rates

• Employment contracts: 0.759% of the total contract value
• Rental contracts: 0.189% of the total lease value (monthly rent multiplied by the number of months)
• Commercial contracts: 0.948% of the contract value
• Financial statements and reports: fixed amounts per page

Stamp duty is often overlooked by foreigners because it is relatively small compared to income tax or OTV. However, it adds up if you are frequently entering into contracts. Your accountant or notary will calculate and collect the stamp duty as part of the document preparation process.

Certain documents are exempt from stamp duty, including documents related to loans from banks, educational documents, and some government-to-citizen interactions. The full exemption list is maintained by the GIB.

Getting a Tax Number (Vergi Numarasi)

Your Turkish tax number is the key that unlocks virtually every financial and administrative process in Turkey. You need it to open a bank account, buy property, register a vehicle, sign a rental contract, set up utility accounts, and file taxes. It is free to obtain and takes minutes.

Applying in person at the tax office

Walk into any vergi dairesi (tax office) with your passport. Tell the staff you need a yabanci vergi numarasi (foreign tax number). They will photocopy your passport, ask for a Turkish address (your hotel or rental address is fine), and issue a ten-digit tax number on the spot. The process takes about 15 minutes in a quiet office, though busy offices in Istanbul can take longer. There is no charge.

Applying online through GIB

You can also apply through the GIB Interactive Tax Office (ivd.gib.gov.tr). The website has an English interface. Create an account, enter your passport details and a Turkish address, and submit the application. Your tax number is usually displayed immediately on screen. Save or print the confirmation. The online system can be temperamental, so if you encounter errors, visiting in person may be faster.

Your tax number is permanent

Once issued, your tax number never changes or expires. Even if you leave Turkey for years and return, the same number remains valid. Keep a record of it in a safe place. You will be asked for it constantly: at the bank, at the notary, when buying a phone, when signing a lease, and when dealing with any government office.

If you have already obtained a tax number for a previous purpose, such as applying for a residence permit or opening a bank account, you use the same number for all tax matters. There is only one tax number per person.

Double Taxation Treaties

One of the biggest concerns for foreigners becoming tax resident in Turkey is the prospect of paying tax twice: once in Turkey and once in their home country. Double taxation agreements (DTA), also called double taxation treaties, exist to prevent this.

Which countries have treaties with Turkey?

Turkey has signed double taxation agreements with over 80 countries, including the United Kingdom, the United States, Germany, France, the Netherlands, Canada, Australia, Japan, Russia, China, India and most EU member states. The full and up-to-date list is published on the GIB international legislation page.

How double taxation treaties work

The specifics vary by treaty, but the general principle is that income is taxed primarily in the country where it is earned (the source country), and your home country grants a credit or exemption for that tax. For example, if you are a UK citizen living in Turkey and paying Turkish income tax on your Turkish salary, the UK-Turkey DTA means you can offset the Turkish tax against any UK tax liability on the same income. In most cases, you will not pay additional tax in the UK on income already fully taxed in Turkey.

Some income types are treated differently. Pension income, for instance, may be taxable only in your country of residence under some treaties, while dividends and interest may be subject to reduced withholding rates. The details matter and vary by treaty. If you have significant cross-border income, consult a tax advisor who specialises in international taxation in both Turkey and your home country.

Claiming treaty benefits

Treaty benefits are not automatic. You typically need to declare your foreign tax payments when filing your home-country tax return and claim the foreign tax credit or exemption. In Turkey, you may need to provide a certificate of tax residency (mukimlik belgesi) from the Turkish tax authority to claim treaty benefits in your home country. You can request this from your local tax office or through the GIB.

How to File Taxes in Turkey

The Turkish tax year runs from 1 January to 31 December. Annual tax returns (yillik gelir vergisi beyannamesi) must be filed between 1 and 31 March for the previous calendar year. Payment is made in two instalments: the first by the end of March and the second by the end of July.

Who needs to file?

• Employees with a single employer: Generally do not need to file, as tax is withheld at source. However, if your gross salary from a single employer exceeds a threshold (adjusted annually), you must still file.
• Employees with multiple employers: Must file if income from the second and subsequent employers exceeds a threshold (around 150,000 TL in 2026).
• Self-employed and freelancers: Must file quarterly advance returns (gecici vergi beyannamesi) and an annual return.
• Rental income earners: Must file if rental income exceeds the annual exemption threshold.
• Anyone with capital gains: Must file for gains from property sales (within five years of purchase), securities, and other investments.

Filing online through the GIB system

Tax returns are filed electronically through the GIB Interactive Tax Office or through the Hazir Beyan Sistemi (pre-filled return system) for simpler cases such as rental income. The system generates a pre-filled form for employees, and you can adjust it to add other income sources. Payment is made via bank transfer to the relevant tax office account.

Get a Turkish accountant (mali musavir)

If you have anything beyond straightforward employment income, I strongly recommend hiring a Turkish accountant (mali musavir or serbest muhasebeci mali musavir, abbreviated SMMM). Accountancy fees for individuals are modest by international standards, typically 3,000-10,000 TL per year depending on complexity. A good accountant will handle your quarterly and annual filings, ensure you claim all applicable deductions, and keep you compliant with the Revenue Administration. The penalties for late filing or underpayment carry both interest charges and fixed fines, so the cost of an accountant pays for itself in avoided mistakes.

If you are self-employed or running a business, an accountant is effectively mandatory. Turkish tax reporting requirements for businesses include monthly KDV returns, quarterly advance income tax payments, annual corporate or income tax returns, and various employer withholding declarations. Managing this without professional help is unrealistic for most foreigners.

Common Questions for Foreigners

Do I pay tax on money I transfer to Turkey?

No. Transferring money from abroad to your Turkish bank account is not a taxable event. You can bring in foreign savings, receive gifts from family, or transfer your own funds between countries without triggering a Turkish tax obligation. The money only becomes taxable if it constitutes income that has not yet been taxed, such as earned income being remitted. Personal savings, inheritances and gifts are not subject to Turkish income tax.

Is my foreign pension taxable in Turkey?

This depends on the double taxation treaty between Turkey and the country paying your pension. Under many treaties, including the UK-Turkey DTA, government pensions are taxable only in the country of origin, while private pensions may be taxable in your country of residence. Check the specific treaty for your country. If you are a retiree living in Turkey, this is one area where professional advice is particularly valuable, as getting it wrong can result in double taxation or unexpected bills.

What happens if I earn money online while living in Turkey?

If you are a Turkish tax resident, all income is taxable in Turkey, regardless of where the client is located or what currency you are paid in. Freelance income from international clients, online business revenue, and remote employment income are all subject to Turkish income tax. You need to declare this income, and if you are self-employed, you will need to register as a serbest meslek erbabi (self-employed professional) and file quarterly returns. Working without declaring income is a risk that carries penalties and back-tax assessments if discovered.

Are there any tax advantages to getting Turkish citizenship?

Turkish citizenship itself does not change your tax position. Tax obligations are based on residency, not citizenship. A Turkish citizen living permanently abroad is not a Turkish tax resident and does not owe Turkish tax on worldwide income (though they may owe tax on Turkish-sourced income). The practical advantage of citizenship is that it comes with a permanent right to live and work in Turkey, which in turn affects your residency status and therefore your tax position. But holding Turkish citizenship while living in another country does not create a Turkish tax obligation on its own.

Can I deduct my rent or living expenses?

Rent on your personal residence is not tax-deductible against employment income. However, if you are self-employed and use part of your home as a dedicated workspace, you may be able to deduct a proportionate share of rent and utilities as a business expense. Similarly, health insurance premiums, private pension contributions (up to certain limits), and educational expenses for yourself or dependents can be deducted. A good accountant will identify all the deductions available to you.

What about cryptocurrency gains?

As of 2026, Turkey has introduced regulations around cryptocurrency but the tax treatment remains an evolving area. Gains from cryptocurrency trading are generally considered taxable income and should be declared. Turkey banned the use of cryptocurrencies as a payment method for goods and services in 2021, but trading and holding remain legal. If you trade actively, declare your gains and consult an accountant familiar with the current regulatory position. The Revenue Administration has been increasing its scrutiny of crypto transactions in recent years.