Regardless of whether you are a foreign investor, entrepreneur, or expat who will move to Türkiye, you should also know about the country's taxation system. Known for being one of the most competitive tax policies among the members of OECD, Türkiye ensures transparency and fairness in income, company, and consumption taxes—becoming an increasingly popular hub for global business and property investment.

1. Income Taxes in Türkiye
Türkiye has two principal types of income tax: Personal Income Tax (PIT) and Corporate Income Tax (CIT).

1.1 Personal Income Tax

Personal incomes are taxed progressively on the gross annual income. Residents are taxed on their worldwide income, while non-residents are taxed on income earned from within Türkiye.

2024 Employment Income Tax Brackets:

Up to TRY 110,000: 15%
TRY 110,001 – 230,000: 20%
TRY 230,001 – 870,000: 27%
TRY 870,001 – 3,000,000: 35%
Over TRY 3,000,001: 40
Example: TRY 300,000 salary corresponds to around TRY 24,095 payable tax after the minimum wage exemption.

1.2 Corporate Income Tax

The corporate income tax rate in Türkiye is 25% with special rates being:

30% for financial institutions and banks
5% for export income (a substantial incentive for exporters)
Eligible taxpayers are capital companies, cooperatives, and economic enterprises owned by associations or foundations.

2. Taxes on Expenditure
2.1 VAT (Value Added Tax)

Applied to most goods and services at graduated rates:

1% – Essential items (e.g., some foodstuffs)
10% – Special goods/services
20% – Normal rate
2.2 Special Consumption Tax (SCT)

Applied once (not like VAT), on:

Fuel and petroleum products
VAT/Old cars
Cars and luxury cars
Alcohol and tobacco
Luxury
2.3 Banking and Insurance Transaction Tax

Banks and insurers are VAT-exempt but pay:

10% on general transactions
15% on consumer loans
1% on interbank interest
0.2% on the sale of foreign currency
2.4 Stamp Duty

Applicable to government documents (financial statements, salaries, contracts) 0.189% – 0.948% or in fixed amounts.

3. Wealth Taxes
3.1 Property Tax

The property tax per annum is between:

0.1% to 0.6% depending on the type of property and where located
An additional 10% contribution towards cultural heritage preservation
3.2 Motor Vehicle Tax

Depending on engine capacity and age, paid annually.

3.3 Inheritance and Gift Tax

Between 1% to 30%, depending on the relation and value of assets.

Why It Matters to Foreign Investors
Türkiye's harmonised and simple tax regime complies with global standards, boosting investor confidence. Benefitting from advantageous corporate rates, tax incentives for property, and seasoned export benefits, Türkiye is a prime location for investment, trade, and property ownership.

Gain Estates navigates our clients through the legal and tax landscape to offer seamless investment experiences in Türkiye's vibrant markets.