Tax system in Turkey
Turkey generally taxes resident individuals on worldwide income and non-residents on Turkish-source income only. From 2026, qualifying new residents who had no Turkish domicile or tax liability in the prior three calendar years can receive a 20-year exemption for qualifying foreign income. Employment, business, rental, dividend and investment income can otherwise be in scope.
Companies are usually taxed at 25%, with a 30% rate for financial sector companies. Turkey also applies a 10% domestic minimum tax and a 15% Pillar Two QDMTT for in-scope multinationals.
There is no national net wealth tax, but Turkey does have annual property tax, a high-value residence tax, inheritance and gift tax, dividend withholding tax, VAT at 20% and payroll social security.
The 2026 watch list is the income tax brackets, dividend withholding at 15%, inheritance and gift allowances, and the April 2026 draft omnibus bill that proposed a formal cryptoasset tax framework.
Tax rates at a glance
- Income tax
- 15%-40%
- Wealth tax
- 0%
- Inheritance tax
- 1%-30%
- Capital gains tax
- No general CGT
- Corporate tax
- 25% (30% financial sector)
- Dividend tax
- 15% WHT
- VAT
- 20%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Business ownersEmployeesInvestorsExpatsHolding companies
Watch out for
- Turkey is not a no-tax jurisdiction. Payroll withholding, social security, property tax, VAT, stamp tax and high-value residence tax can all matter.
- Residents are generally taxed on worldwide income, so foreign dividends, interest and business income may still need reporting in Turkey. A 2026 law creates a 20-year foreign-income exemption for qualifying new residents.
- The April 2026 omnibus draft proposed cryptoasset taxes and broader base-broadening measures, but those changes were not yet enacted.
Frequently asked questions
Is Turkey a high-tax country?
Turkey is a mid-to-high tax jurisdiction compared with Gulf hubs. Personal income tax goes up to 40%, corporate tax is 25%, dividends are usually subject to 15% withholding and there are also payroll and property taxes.
Does Turkey have wealth tax?
Turkey has no national net wealth tax, but it does have annual property tax and a high-value residence tax on expensive homes.
Is Turkey good for expats and founders?
Turkey can work well for people who need a large domestic market and treaty access, but the tax outcome depends heavily on residence, payroll, VAT, social security and whether income is salary, dividends, property or business profit.