Foreigners are taxpayers for the income they earn in Türkiye. Double taxation avoidance agreements are applied.
Taxpayer Types
- Full taxpayer:Resident in Türkiye (6 months+ stay) → all world income
- Limited taxpayer: Not resident in Türkiye → only income in Türkiye
Taxable Income
- Salary (If working in Türkiye)
- Rent (real estate in Türkiye)
- Commercial income
- Capital income
- Royalty
- Crypto earnings
Double Taxation Avoidance Agreements
- Turkey must have agreements with 80+ countries
- Same income in two countries not taxed
- Generally "source country" priority
- Discount/offset is applied
Withholding tax
- Withholding tax is deducted from payments made to foreigners
- At a low rate if there is an agreement
- 20% otherwise
Tax Declaration
- Annual declaration for full taxpayer
- Narrow taxpayer is generally sufficient withholding tax
- It is necessary to obtain a tax number
Profit Sale Gain
- Foreigner's real estate sale in Türkiye: capital gain
- After being kept for 5 years, the sale is generally tax-free (TMK)
4th Chamber of the Council of State
4. The Department adopts that double taxation avoidance agreements require objective interpretation and that broad interpretation against foreign taxpayers should be avoided.
Tax and foreigners law lawyer is recommended.