Middle East
Turkey: tax at a glance
Progressive worldwide income tax runs as high as 40%, alongside a 25% corporate rate and 20% VAT. The country also offers a fast $400k real-estate route to citizenship.
Ways to relocate to Turkey
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 40%
- Corporate income
- 25%
- Capital gains
- Taxed as ordinary income, with exemptions that depend on holding period. Financial firms face a 30% corporate income tax.
- VAT / VAT (KDV)
- 20%
- Dividends (WHT)
- 15%
- Interest (WHT)
- 0–10%
- Royalties (WHT)
- 20%
- Social security (employee)
- 15% (incl. unemployment insurance)
- Social security (employer)
- ~22.5% (incl. unemployment insurance)
- Wealth tax
- None
- Inheritance / estate
- Inheritance and gift tax, 1%–30%
- Property tax
- Annual property tax 0.1%–0.6% of assessed value
- Other
- Stamp duty and Special Consumption Tax (ÖTV), plus a 10% domestic minimum corporate tax starting in 2026.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Turkey?
The top marginal personal income tax rate in Turkey is 40%. A progressive rate of 15%–40% applies to residents' worldwide income.
What is the corporate tax rate in Turkey?
The headline corporate income tax rate is 25%.
Does Turkey tax capital gains?
Capital gains for individuals: Taxed as ordinary income, with exemptions that depend on holding period. Financial firms face a 30% corporate income tax..