Taxes in Turkey 2026: Complete Guide to Turkish Tax Rates

Taxes in Turkey depend on a person’s tax status, type of income, and type of property owned. Tax residents are generally subject to tax on their worldwide income, including foreign income, while non-residents are taxed only on Turkish-source income and property located in Turkey. In 2026, personal income tax rates range from 15% to 40%, the corporate tax rate is 25%, and a special regime for new tax residents provides an exemption for foreign income for up to 20 years.

This guide explains which taxes apply in Turkey in 2026, who is required to pay them, and what tax optimisation opportunities are available to investors, property owners, and businesses.

Key Takeaways

Turkish tax residents are generally taxed on worldwide income, while non-residents are taxed only on Turkish-source income and assets located in Turkey.
Since 2026, new Turkish tax residents may benefit from a special regime exempting foreign income from taxation for up to 20 years, making taxes in Turkey for foreigners significantly more attractive.
Personal income tax is levied on a progressive scale ranging from 15% to 40%.
The standard corporate tax rate is 25%, while financial institutions are subject to a 30% rate.
Standard VAT rates in Turkey are 1%, 10%, and 20%, depending on the category of goods and services.
Property owners pay annual real estate tax, while residential properties valued above TRY 17.7 million are additionally subject to the Valuable Housing Tax at rates from 0.3% to 1%.
Capital gains from the sale of real estate by individuals are generally exempt after five years of ownership.
Businesses operating in technology parks and free zones can benefit from tax and customs incentives.
Tax rates, thresholds, and exemptions in Turkey are regularly revised and indexed by the government.

Who Must Pay Taxes in Turkey?

Tax residents in Turkey are generally taxed on all income, including income earned abroad. Non-residents, as a rule, pay taxes only on income derived from Turkish sources and on property located in Turkey.

You may be considered a Turkish tax resident if you:

Have a permanent place of residence in Turkey
Spend more than 183 days in Turkey during a calendar year

However, foreigners temporarily staying in Turkey for education, medical treatment, tourism, or official assignments may not be treated as tax residents even if they remain in the country for a longer period.

Non-residents may still be required to pay taxes in Turkey if they:

Own real estate in Turkey
Own vehicles or yachts registered in Turkey
Receive interest from Turkish bank deposits
Rent out property in Turkey
Conduct business or earn other Turkish-source income

New Tax Regime for Foreign Residents in Turkey

From 2026, Turkey introduced a special tax regime for new tax residents under Law No. 7582 of 4 June 2026. Subject to meeting the applicable requirements, the regime reduces the tax burden on foreign assets and income.

To qualify, an individual must not have been a Turkish tax resident during the previous three calendar years and must satisfy other statutory conditions.

The regime provides for:

Exemption of foreign income from Turkish taxation for up to 20 years
A reduced inheritance and gift tax rate of 1%
No obligation to declare qualifying foreign income

Income generated in Turkey, including employment income, business profits, rental income from Turkish property, and dividends from Turkish companies, remains taxable under the standard rules.

Taxes in Turkey for Individuals

Individuals may pay taxes on:

Salaries, self-employment income, benefits, and pensions
Rental income
Inheritance and valuable gifts
Capital gains from the sale of real estate
Bank interest, bond income, and dividends

To calculate tax liability:

Aggregate all taxable income received during the tax year for each adult family member separately
Determine the applicable tax bracket
Calculate taxes on separately taxed income such as inheritance or bank interest
Apply available deductions and allowances.

Personal Income Tax Rates in 2026

The following progressive rates apply to salaries, pensions, rental income, and self-employment income:

Annual Income (TRY)	Tax Rate
Up to 190,000	15%
190,000–400,000	20%
400,000–1,500,000*	27%
1,500,000–5,300,000	35%
Above 5,300,000	40%

*For employment income, the 27% bracket applies up to TRY 1,000,000.

The tax system is progressive. For example, a person earning TRY 300,000 annually pays 15% on the first bracket and 20% on the amount exceeding the threshold.

Tax on Bank Deposit Interest

Deposit Term	Tax Rate on Interest Income
Up to 6 months	17.5%
6–12 months	15%
More than 1 year	10%

The currency of the deposit does not affect the applicable rate.

The standard withholding tax on dividends paid by Turkish companies is 15%. However, effective taxation may be reduced under double taxation treaties. Certain financial instruments, including some government bonds and exchange-traded securities, may benefit from exemptions or preferential treatment depending on the asset type, holding period, and investor status.

Tax Deductions for Individuals

The following expenses may generally be deducted from taxable income:

Social security and health insurance contributions paid for oneself or family members
Education expenses for oneself, children, or a non-working spouse, up to 10% of annual income
Donations to qualifying state and municipal funds
Property maintenance expenses, with landlords allowed to deduct up to 15% of rental income
Business expenses for self-employed individuals, including equipment, premises, and advertising
Transaction and renovation costs when selling real estate
Employees in Turkey contribute 15% of gross salary to the social security and unemployment insurance systems. In 2026, contributions apply only up to the government-set monthly ceiling of TRY 297,270.

How to File a Tax Return in Turkey

Employers calculate and pay payroll taxes on behalf of employees. Landlords, entrepreneurs, property sellers, bondholders, and deposit account holders must generally submit their tax returns online by the end of March.

Tax payment deadlines vary depending on the type of tax:

Property taxes are paid in two instalments, in May and November
Personal income taxes are generally paid by the end of March and in July

The Turkish Revenue Administration provides an official tax calendar for individuals and businesses.

Inheritance and Gift Taxation

Inheritance and gift tax rates depend on the value of the transferred property.

Property Value (TRY)	Inheritance Tax	Gift Tax
Up to 2.4 million	1%	10%
Up to 8.1 million	3%	15%
Up to 20.1 million	5%	20%
Up to 44.1 million	7%	25%
Above 44.1 million	10%	30%

For example, tax on property worth TRY 9 million would be calculated progressively across the applicable brackets.

Annual exemptions in 2026 include:

Inheritance and gift taxes may be paid in six instalments over three years.

While gift taxation is generally higher, gifts can be used as an estate-planning tool, especially given Turkey’s forced heirship rules.

Property Taxes in Turkey

Property taxes apply equally to individuals and companies. Real estate taxes are collected by municipalities rather than the central government.

Tax rates in major cities such as Istanbul, Ankara, Izmir, and Mersin are generally higher than in smaller municipalities.

Property Type	Major Cities	Smaller Municipalities
Residential	0.2%	0.1%
Commercial	0.4%	0.2%
Development land	0.6%	0.3%

The government is gradually adjusting taxable property values toward market values while accounting for inflation.

Valuable Housing Tax

Residential properties valued above TRY 17,711,000 are subject to additional taxation.

Property Value (TRY)	Tax Rate
17,771,000–26,657,000	0.3%
26,567,000–35,425,000	0.6%
Above 35,425,000	1%

Property tax payments may be made through municipalities, the e-Devlet portal, or participating Turkish banks.

Capital gains from real estate sales are generally taxed as personal income. However, gains are usually exempt if the property has been owned for more than five years.

Rental income is included in annual taxable income. In 2026, owners of residential property are exempt if annual rental income does not exceed TRY 47,000. Documented expenses, including insurance, repairs, and maintenance, may be deducted.

Corporate Tax in Turkey

A company is generally considered a Turkish tax resident if its registered head office is located in Turkey. Non-resident companies are taxed only on Turkish-source income.

Key Taxes for Businesses

Corporate income tax: 25%; 30% for financial institutions
Social security and unemployment contributions: 22.75% of employee salaries
VAT: 1%, 10%, or 20%, depending on goods and services

Additional taxes include:

Stamp duty on contracts, tax returns, and financial statements, generally ranging from 0.2% to 1%;
Special Consumption Tax (SCT) on products such as tobacco, luxury vehicles, yachts, oil, and gas;
Property and vehicle taxes.
Capital gains from securities and property sales are generally included in taxable profits.
However, companies may receive up to a 50% exemption on gains from the sale of Turkish shares held for more than two years.

Additional charges apply to financial and insurance companies, while exporters, IT companies, and agricultural businesses may benefit from incentives.

Foreign companies operating in Turkey are generally required to engage a licensed Turkish accountant, who is authorised to submit tax filings and reports.

Technology Parks and Free Zones: Benefits for Businesses

Turkey’s Technology Development Zones (TDZs) and Free Zones offer tax and customs incentives for qualifying businesses.

Companies operating in technology parks may benefit from exemptions from corporate tax on qualifying R&D and software income until 31 December 2028. Salaries of employees engaged in R&D and software development may also be exempt from personal income tax and stamp duty.

Businesses operating in Free Zones benefit from VAT and customs duty exemptions, while export-oriented manufacturers may enjoy corporate tax incentives.

Technology parks are particularly attractive for IT companies and start-ups, whereas Free Zones are primarily used by manufacturing, trading, and logistics businesses.

Conclusion

The Turkish tax system combines relatively competitive tax rates, a broad range of incentives, and special regimes for investors and businesses. Tax obligations depend on residency status, income source, and asset type, making advance tax planning essential before relocating, investing, or establishing a business.

In 2026, Turkey took another step toward attracting international investors by introducing a special tax regime for new residents, allowing foreign income to be exempt from taxation for up to 20 years. This further strengthens Turkey’s position as an attractive destination for relocation, investment, and international tax planning.

To benefit from Turkey’s tax advantages, including the special regime for new tax residents, individuals must have a lawful basis for long-term residence in the country. If you are considering Turkish residency or citizenship by investment, the Astons team can help you identify the most suitable solution and provide end-to-end support, from property selection to obtaining residency or citizenship.

FAQ

What taxes do individuals pay in Turkey?

Individuals pay taxes on employment income, investment income, rental income, capital gains, and certain types of property ownership.