If benefits are derived from self-employment activities performed in Türkiye or if the self-employment activities are evaluated in Türkiye, the income derived from such activities is considered to be income derived in Türkiye and is accordingly taxable to nonresidents.
Recipients of services provided by resident and nonresident selfemployed individuals must withhold a 20% tax from the amounts paid to the individuals and remit the withholding tax to the tax offices on behalf of the individuals. If the service provider is a nonresident, provisions of an applicable double tax treaty need to be taken into account.
Revenues from immovable properties. Revenues derived from the rental of immovable properties and rights by their owners, by their holders, by those holding easement and usufruct rights or by their tenants are taxable in Türkiye if the immovable property is located in Türkiye or if such properties and rights are used or evaluated in Türkiye.
Rental income derived by resident and nonresident individuals from immovable assets and royalties for patents and rights are subject to withholding tax at a rate of 20%. For nonresidents, this withholding tax may be eliminated or reduced under applicable double tax treaties.
Capital investment income. The following types of income are included in investment income:
• Dividends from all types of share certificates
• Earnings arising from participation shares
• Profits distributed to the chairman and members of the board of directors of companies
• Interest income derived from bonds and bills
• All interest income (time deposits, repurchase [REPO] agreements and others)
Resident and nonresident individuals are subject to withholding tax on dividends and interest. The rates of withholding tax on interest from deposit accounts should be further checked because there can be separate tax rates based on certain factors, such as duration and currency types. The withholding tax rates for interest on term accounts varies, and different tax rates are applicable.
Other earnings and gains The following types of income are included in other earnings and gains:
• Earnings arising from the sale of securities, rights, copyrights and patents
• Earnings arising from the disposal of land, immovable properties and ships within five years after the acquisition of the assets
• Earnings arising from the transfer of rights of partnership shares
• Earnings arising from the disposal of a whole operation whose activities were halted or from the disposal of part of such operation
• Incidental earnings
Capital gains. Capital gains are normally considered to be ordinary income. However, capital gains derived from transfers of shares are exempt from income tax in certain cases. The rules
applicable to capital gains derived from the transfer of shares acquired on or after 1 January 2006 are summarized below.
Under a Council of Ministers’ Decree, the withholding tax rate is reduced to 0% for capital gains derived by resident and nonresident individuals from the sale of shares traded at the ISE. This is the final taxation.
Capital gains derived from the disposal of the shares without the intermediation of a bank or an intermediary institution (that is, capital gains derived by resident and nonresident individuals from the sale of shares not traded on the ISE) are subject to tax at the general progressive income rates (see Rates) and reported in the annual income tax return. However, if the shares are issued by Turkish resident companies and held for more than two years, the gain is not subject to income tax.
Taxation of employer-provided stock options. No specific rules in Türkiye govern the tax treatment of employer-provided stock options. Under the general tax provisions, options are taxable as employment income at the time of exercise. The time of taxation may vary depending on the stock option plan. In addition, under certain circumstances, stock options are subject to stamp tax at a rate of 0.759% and may be subject to social security contributions (see Section C).
Deductions. In determining taxable income, expenses allowable under the income tax law are deducted from gross revenue.
Individuals who render independent professional services or who carry out commercial activities may deduct ordinary businessrelated expenses from taxable income, including salaries, rental payments, fees and the cost of utilities. Depreciation on fixed assets is also allowed. Penalties are not deductible.
The employee portions of social security contributions and unemployment insurance premiums are deductible from gross employment income.
Premiums paid by the employee for himself or herself, his or her spouse or children with respect to personal insurance policies covering life, death, accident, illness, disablement, unemployment, maternity, birth and education are deductible if the following conditions are satisfied:
• The insurance policy is concluded with an insurance company that is located in Türkiye and whose headquarters is in Türkiye.
• The amount of the monthly premium or membership fee may not exceed 15% of the salary earned in that month.
• The annual total of the monthly premiums and membership fees that are paid must not exceed the annual legal minimum wage determined by the law (gross TRY20,002.50 per month from 1 January 2024 through 31 December2024).
Lighting, heating, water, elevator, administration, insurance, interest, tax, depreciation, and maintenance expenses paid by an individual who earns rental income can be deducted from taxable rental income.
Rates. In principle, individual income and gains calculated on a cumulative basis are subject to income tax at progressive tax rates, which vary between 15% and 40% and are calculated on a cumulative basis. The following are the 2024 brackets and relevant income tax rates.
Above 3,000,000 40
Remuneration paid by local employers is also subject to a 0.759% stamp duty.
Credits. An income tax and stamp tax credit is applicable on employment income in Türkiye. The minimum wage applicable in Türkiye is exempted from income tax and stamp tax in Türkiye. Employees who are earning more than minimum wage are able to benefit from a tax credit that is equal to the income tax and stamp tax that would be calculated on minimum wage.
Relief for losses. Self-employed individuals engaged in a business, or individuals who carry out commercial activities, may carry forward business losses for five years. No loss carrybacks are allowed.
B. Other taxes
Inheritance and gift tax. For 2024, beneficiaries of inheritances and gift recipients are subject to inheritance and gift tax at rates ranging from 1% to 30%. The tax is paid over three years in two equal installments, in May and November. For 2024, inheritances amounting up to TRY1,609,552 and gifts amounting up to TRY37,059 are exempt from tax. The following are the tax rates.
Turkish citizens are subject to inheritance and gift tax on worldwide assets received. Resident foreigners are subject to inheritance and gift tax on worldwide assets received from Turkish citizens and on assets located in Türkiye received from resident foreigners or nonresidents. Nonresident foreigners are subject to inheritance and gift tax on assets located in Türkiye only.
Motor vehicle tax. The persons in whose names motor vehicles are registered may pay motor vehicle tax for each year in two equal installments in January and July. The amount of tax is
monthly by the 26th day of the month following the month of payment (in cash or by accrual) and paid by the filing deadline.
A taxpayer who derives commercial or self-employment income must file and pay advance income tax quarterly. The advance tax amount equals 15% of net income. The advance payments must be made by the 17th day of the second month following the end of the quarterly tax period. Advance tax paid is deducted from the income tax payable in the final tax return.
Annual income tax returns must be submitted to the tax authorities between 1 March and 31 March of the following year. The balance of tax due must be paid in two equal installments in March and July.
Nonresidents are generally not required to file income tax returns if they have only earnings subject to withholding tax. Nonresident individuals or Turkish citizens who reside in Türkiye with the intention of staying or nonresident individuals who derive income not subject to withholding tax must file annual income tax returns for other sources of earnings, including commercial income. If nonresident individuals having such earnings leave Türkiye, they must file an “occasional” tax return 15 days before their departure.
Nonresident individuals who are not required to file an annual income tax return must file a special tax return for certain gains listed in the Income Tax Code. The special tax return must be filed within 15 days following the date on which the gains are derived. For gains related to self-employment earnings, the special tax return must be filed within 15 days after the ending of the self-employment activities.
E. Double tax relief and tax treaties
Tax resident individuals may claim a credit for taxes paid abroad on income derived outside Türkiye and subject to tax in Türkiye. This credit can be applied against the tax payable in Türkiye. A foreign tax credit is not available to nonresidents.
The tax amount allowed as a foreign tax credit for a resident is limited to the amount of tax to be paid in Türkiye for the same amount of income. Accordingly, if the tax rate applied in the other country is greater than the tax rate applicable in Türkiye the difference cannot be considered in calculating the foreign tax credit. The portion of the income tax corresponding to the earnings derived in foreign countries is calculated based on the ratio of such income to worldwide income.
To claim the foreign tax credit, both of the following conditions must be satisfied:
• The tax paid in the foreign country must be a personal tax levied on the basis of income.
• The payment of the tax in a foreign country must be substantiated with documents obtained from competent authorities and attested to by the local Turkish embassy or consulate, or if these institutions do not exist, by similar representatives of Türkiye in that country.
Türkiye has entered into double tax treaties with the following jurisdictions.
Albania
Algeria
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belgium
Bosnia and Herzegovina
Brazil
Bulgaria
Cambodia
Canada
Chad
China Mainland
Croatia
Czech Republic
Denmark
Egypt
Estonia
Ethiopia
Finland
France
Gambia
Georgia
Germany
Greece
Hungary
India
Indonesia
F. Entry visas
Iran
Ireland
Israel
Italy
Japan
Jordan
Kazakhstan
Korea (South)
Kosovo
Kuwait
Kyrgyzstan
Latvia
Lebanon
Lithuania
Luxembourg
Malaysia
Malta
Mexico
Moldova
Mongolia
Montenegro
Morocco
Netherlands
New Zealand
North Macedonia
Northern
Cyprus
(Turkish Republic of)
Norway
Oman
Pakistan
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Rwanda
Saudi Arabia
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sudan
Sweden
Switzerland
Syria
Tajikistan
Thailand
Tunisia
Turkmenistan
Ukraine
United Arab
Emirates
United Kingdom
United States
Uzbekistan
Venezuela
Vietnam
Yemen
Nonresident foreign nationals, who are not exempt from the visa requirements of Türkiye under reciprocal agreements, must obtain a visa from the Turkish Embassy or the Consulate General in their country before their travel. Exemptions apply for a stay of limited duration (that is, 30 days, 60 days or 90 days, depending on the country of nationality). Overall, the duration of the stay in Türkiye with a business visa cannot exceed 90 days within the 180-day period starting from the date of the first entrance into Türkiye. In addition, foreign nationals from a limited group of countries may obtain an e-visa from the online portal of the Turkish government for a stay of limited duration (that is, 30 days, 60 days or 90 days, depending on the country of nationality).
A business traveler is restricted to the following activities:
• Business interviews
• Business meetings
• Pre-inspection of goods prior to purchase
• Signing or reviewing business agreements
• The Ministry of Labor and Social Security notifies the Ministry of Industry and Technology about the employee of the entity for which a work permit is requested.
• The Ministry of Industry and Technology establishes an assessing authority to evaluate it.
• The assessing authority evaluates the employee’s ability and proficiency.
• The assessing authority notifies the Ministry of Labor and Social Security of the final evaluation via web service.
• The work permit is accepted or rejected.
General overview. The Turkish parliament adopted the Law on International Labor Force No. 6735 on 28 July 2016, and this law was published in the Official Gazette on 13 August 2016. Following the adoption of the law, on 2 February 2022, the Regulation on the Implementation of the International Labor Law was published in the Official Gazette and entered into effect on that date. Under the Law on International Labor Force No. 6735, nonresident expatriates must obtain a work permit to be eligible for employment in Türkiye. The work permit also serves as a residence permit. Work permits are issued by the Ministry of Labor and Social Security. The initial application for the work permit is filed from abroad with the local Turkish Embassy or the Consulate General or to the competent authority authorized by the Turkish Embassy or Consulate General. Foreigners with a residence permit in Türkiye for at least six months may apply from within the country. The application is made directly to the Ministry of Labor and Social Security in this case. However, this is an exceptional method to obtain a work permit.
The work permit process consists of the following three main steps.
• The expatriate must first apply for a “work visa” at the Turkish Consulate General in the jurisdiction of his or her citizenship or legal residence to initiate the process. This step can be exceptionally conducted via an agency depending on the country of application. As of 5 January 2016, applications for all types of visas must be made first online at www.konsolosluk. gov.tr. This must be followed by the submission of the original documents to the Consulate General at the time of the appointment. During the appointment, the expatriate submits the work visa application and is provided with a reference number to be used for the second step.
• The second step is to apply for the “work permit” through the Ministry of Labor and Social Security’s online system. Following the work visa application at the Turkish Consulate, the work permit application must be submitted within 30 days after the reference number is obtained. Work permit applications are accepted by the Ministry of Labor and Social Security through the online system only. Accordingly, the Turkish host company must have registered as an employer with the electronic signature of the Social Security e-Declaration Officer of the company. The Turkish host company must be registered as an employer to file applications.
• The expatriate must revisit the Turkish consulate to get the work visa stamped into his or her passport and enter into Türkiye with his or her work visa within 180 days following the approval of the work permit application by the Ministry of Labor and Social Security, provided that all preconditions are satisfied and
all required documents are available during the application process. Approval confirmations are communicated via email and relevant fees must be paid.
Work permits are obtained in order to work in specific workplaces; therefore, the expatriate is expected to work in the specified workplace and a remote working option is not viable for foreigners working and residing in Türkiye with a work permit.
Expatriates must register an address in the same city where the workplace is located within 20 days of their arrival to Türkiye. Address registration with another city is not permissible.
Work permits are granted for definite or indefinite time period, and independent work permits are granted for a definite time period.
Definite-term work permit. For the first application for the work permit, unless otherwise provided in bilateral or multilateral agreements to which Türkiye is a party, the work permit is valid for at most one year for work in a certain workplace or enterprise in a certain job. After the duration of one year, the duration of the work permit may be extended up to two years, on the condition of working in the same workplace or enterprise in the same job. At the end of the duration of three years, the duration of the work permit may be extended up to three years, on the condition of working in the same profession and at the disposal of a desired employer. The work permit extension processes must be realized at most 60 days before the expiration date of the valid work permit. Work permit extensions must be processed 60 days before the expiration date of the valid work permit at the earliest.
Indefinite-term work permit. Foreigners with a long-term residence permit or a legal work permit with a minimum term of eight years may apply for an indefinite-term work permit. However, fulfilling the application criteria does not automatically entitle the foreigner to be granted an indefinite work permit. And indefinite work permits should be renewed at the end of every five years as of the start date of the work permit.
Turquoise Card. By virtue of the Law, another type of work permit called the Turquoise Card is initiated. The Turquoise Card is designed to bring into Türkiye a qualified foreign labor force who will make investments supporting the development of Türkiye and provide contributions to scientific and technological development. The Turquoise Card Regulation was announced in the Official Gazette No. 30007 and dated 14 March 2017. The Turquoise Card may be granted to foreigners who have the following characteristics:
• Are evaluated to be highly qualified labor given their education, salary, professional knowledge and experience, contribution in science and technology, and similar qualifications
• Are evaluated to be highly qualified investors given their investment or export level, size of the employment they will provide, contribution in scientific and technological development, and similar qualifications
• Contribute in scientific and technological development or are scientists or researchers who conduct studies that are considered to be strategic on the international level in terms of the country’s interest in the fields of science, industry and technology
be determined by the Ministry of Labor and Social Security in line with the recommendations of the International Labor Policy Advisory Board are taken into consideration.
Under Article 36 of the Regulation on Implementation of the Law No. 4817 on Work Permits of Foreigners, foreigners are allowed to work independently if the following conditions are met:
• They will have at least five years of legal and continuous residence in Türkiye.
• They will work and create added value in terms of economic development and positive impact on employment.
Work permit exemption. Foreigners whose qualifications are sufficient for work permit exemptions may work in Türkiye by obtaining a work permit exemption. Work permit exemption applications shall be submitted directly to the Ministry of Labor and Social Security in Türkiye, and to the consulates of the jurisdictions in which the foreigner is a citizen or legally resides. They will be forwarded to the Ministry of Labor and Social Security by the consulate. The work permit exemption period may vary, depending on the foreigner’s field of activity, and cannot be applied for renewal. However, a new work permit exemption can be applied for after a period of six to 12 months. The exemption period is limited in the law and is determined according to the foreigner’s field of activity.
Digital Nomad Visa. The Ministry of Culture and Tourism recently announced the Digital Nomad Visa. According to the announcement, foreign citizens who are employees of a company located outside Türkiye can work as remote workers in Türkiye without obtaining a residence permit and work permit in Türkiye, while maintaining ties with the company for which he or she works. To obtain the visa, the foreign national will first need to meet the application criteria indicated in Digital Nomads - GoTürkiye Experiences website.
H. Family and personal considerations
Family members. After a foreign national obtains a work permit, the spouse and children will be eligible to apply for their own residence permits.
The family of the expatriate may obtain a residence permit for the duration of the expatriate’s employment, which is called a “family residence permit.” Dependents cannot file their applications jointly with the expatriate. Once the work permit process is finalized and the dependents enter into Türkiye, the residence permit application process can be initiated by completing an online residence permit application form and booking an appointment with the competent immigration authority. The online system generates the date and time for the appointments; a particular date or time cannot be requested.
For residence permit applications, the original of the birth certificate of children, the marriage certificate and the criminal record of the work permit holder are required. These documents must be legalized with either of the following:
• An apostille by the authorities from which it is obtained