How dividend tax works in Turkey
Turkey increased dividend withholding tax to 15% from 22 December 2024. The rate applies to dividends paid to resident or non-resident individuals and non-resident companies, unless a treaty reduces it.
Dividend distributions to resident companies are generally not subject to withholding tax.
For resident individuals, half of domestic dividends from resident companies is exempt from income tax. If the taxable half plus other income exceeds the 2026 filing threshold of TRY 400,000, an annual return may be required.
Foreign dividends are taxable for resident individuals above the 2026 threshold of TRY 22,000, with a 50% exemption available if the 50% shareholding and remittance conditions are met. A qualifying new resident can instead be eligible for the 2026-law 20-year exemption for foreign income.
Tax rates at a glance
- Dividend withholding tax
- 15%
- Domestic dividend tax
- Half exempt for resident individuals
- Foreign dividend tax
- Taxable for residents above threshold
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesShareholdersExpatsFamily offices
Watch out for
- Treaty relief can reduce the 15% rate, but only if the paperwork and beneficial ownership conditions are satisfied.
- Resident individuals often need to look at both dividend withholding and the annual income tax return threshold.
- Foreign dividends can still be taxable in Turkey even when the underlying company is abroad.
Frequently asked questions
Does Turkey tax dividends?
Yes. Turkey generally withholds 15% tax on dividends paid to individuals and non-residents, with treaty reductions possible.
Are resident company dividends taxed?
Dividends paid to resident companies are generally not subject to withholding tax.
Are foreign dividends taxed in Turkey?
Resident individuals can be taxed on foreign dividends above the annual threshold, subject to the available 50% exemption rules.