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%A progressive rate of 15%–40% applies to residents' worldwide income.
- 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
A special regime for new arrivals
Law No. 7582, published in the Official Gazette on 4 June 2026, inserts Article 20/D into the Income Tax Law. It grants a 20-year exemption on foreign-source income for individuals who become Turkish tax residents from 1 January 2026, provided they had no Turkish domicile or full tax liability in the prior three calendar years.
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.