Türkiye

Last update: 2026-05-02
TR TRY Turkish
Pros
Strategic location and modern infrastructure connecting Europe, Asia, and the Middle East.
Competitive labor costs and a large, young, entrepreneurial workforce for rapid scaling.
Extensive network of free trade agreements and special economic zones with tax incentives.
Cons
High inflation and currency volatility undermining long-term financial planning and capital preservation.
Increasing state interventionism and unpredictable regulatory changes affecting property rights and legal certainty.
Significant concerns regarding judicial independence and political influence over economic institutions.
Personal income
15 → 40%
progressive
Corporate
25%
flat
Capital gains
15 → 40%
progressive
VAT (standard)
20%
standard rate
i 7.5 DIVIDEND PIPELINE
i 7.2 HOLDING
i 3.3 VERY LOW TAX
i 2.7 PRIVACY GRADE
i 2 CRYPTO HAVEN
i 1.4 EASY CITIZENSHIP
VERYLOW TAX 3.3/10 HOLDING 7.2/10 DIVIDENDPIPELINE 7.5/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 2.7/10 EASYCITIZENSHIP 1.4/10
01/08

Will Türkiye tax what you earn?

income tax tax residency territorial system

YES, A LOT. Personal income is taxed heavily in Türkiye (top marginal rate 40%), but the residency test is unusually permissive. The bill is steep; the trick is not to trip into resident status without meaning to.

Personal income taxi
15 → 40%
progressive · 5 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
+0.8%
Applied over the gross salary for individuals receiving their income from a local payroll (Stamp tax)
Tax residence testi
183days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Türkiye tax what you own?

capital gains wealth tax inheritance dividends interest

YES, A LOT. Türkiye runs the full kit on owned wealth: capital gains at 40%, and an annual wealth tax above a threshold (top rate 0.3%). Holding here is expensive in every direction: flow, stock, and transfer.

Capital gainsi
40%
progressive
Dividend taxi
40%
progressive
Interest incomei
40%
progressive
Wealth taxi
0.3%
progressive · threshold 382,416
Crypto · tax regimei
Regime
UNREGULATED
Fallback rate
0%
Turkey classifies crypto-assets as intangible assets. While Law No. 7518 (2024) regulated service providers, it did not introduce a specific crypto tax. Currently, individual gains are generally not taxed unless they constitute 'commercial activity,' which is taxed at progressive rates up to 40%. Sources: https://www.resmigazete.gov.tr/eskiler/2021/04/20210416-4.htm, https://www.resmigazete.gov.tr/eskiler/2024/07/20240702-1.htm
Crypto-to-cryptoi
NEUTRAL
a swap is not a taxable realisation event
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
APPLIES
system · heir-based · 5 heir classes
HeirTop rateAllowance
Spouse 10% TRY 1,609,552
Children 10% TRY 1,609,552
Siblings 10% TRY 0
Other relatives 10% TRY 0
Non-relatives 10% TRY 0
03/08

Is it easy to run a company in Türkiye?

corporate tax criminal liability public registry VAT IP box

NO. Türkiye runs the full pressure stack: corporate tax at 25%, criminal liability for misuse of corporate assets (your own consent doesn't waive the offense; using company funds for personal purposes is prosecutable, even as sole shareholder), and public corporate registries (your name as shareholder visible to anyone with a browser). Heavy rate, real prosecution risk, full ownership visibility. Hard to design a worse operating frame for an owner-operator.

Corporate taxi
25%
flat · +5% financial sector companies (total rate 30%) · +15% Pillar Two global minimum top-up tax (QDMTT) for MNE groups with annual revenue of EUR 750 million or more · +30% payments to corporations in tax haven countries
IP Box · Patent Boxi
12.5%
vs. 25% corp
patents copyrighted software designs know how plant varieties industrial processes
Patent Tax Exemption (Article 5/B of the Corporate Tax Law) · net income
Misuse of corporate assetsi
CRIMINAL LIABILITY
Turkish Commercial Code (Law No. 6102) Articles 358 and 562; Turkish Penal Code (Law No. 5237) Article 155
Turkey strictly enforces the 'Autonomy of the Legal Entity' principle. Under Article 358 of the Turkish Commercial Code (TCC), shareholders (including sole shareholders) are prohibited from borrowing from the company unless they have fully paid their capital subscription and the company's profits cover previous losses. Violation of this rule is a criminal offense punishable by a judicial fine (adli para cezası) under TCC Article 562. Furthermore, the unauthorized use of corporate funds for personal expenses is prosecuted as 'Abuse of Trust' (Güveni Kötüye Kullanma) under Article 155 of the Turkish Penal Code, which carries a prison sentence of 1 to 7 years when committed in a commercial context. Because the company is a separate legal person, the sole shareholder's consent does not legalize the act, and it can be prosecuted ex officio as a crime against the entity's property.
Shareholders privacyi
PUBLIC
Türkiye Ticaret Sicili Gazetesi
Directors privacyi
PUBLIC
Türkiye Ticaret Sicili Gazetesi
Incorporation costi
Limited Liability Company (LLC)
Limited Şirket (Ltd. Şti.)
Trade Registry Registration and Chamber Fees USD 446
Notary, Sworn Translation, and Document Legalization USD 259
Professional Incorporation Service Fee USD 972
Competition Authority Fee (0.04% of capital) USD 0
Total USD 1,677
VAT standard ratei
20%
3 distinct tiers in force
1% 10% 20%
Food & drink
10%
food
Print media
10%
books
Agriculture
1%
farm inputs
04/08

Is Türkiye good for your holding company?

treaty network participation exemption withholding

YES. Türkiye is built for holding. An extensive treaty network (82 signed agreements) cuts withholding on cross-border dividend, interest and royalty flows, and a full participation-exemption regime (100% on qualifying dividends and gains) lets value flow through without a domestic layer. The classic elite-tier setup: a holding structured here travels well across borders.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
100%
10% holding · 12 months min
CFC rulesi
APPLY
Turkish residents are taxed on undistributed profits of foreign subsidiaries if they hold at least 50% control, provided the subsidiary earns 25%+ passive income, pays less than 10% effective tax, and has gross revenue over TRY 100,000.
WHT · dividendsi
15%
non-resident outbound
WHT · interest
10%
non-resident outbound
WHT · royalties
20%
non-resident outbound
Tax-haven WHT
30%
penalty rate · blacklisted destinations
Treaties signedi
68
active
Treaties pending
13
in negotiation
Tax treaty networki
origin · TR 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with TR.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Türkiye?

exit tax territorial system dual citizenship

SOME. Türkiye taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
naturalised citizens may keep their existing nationality
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Türkiye protect your privacy?

info exchange corporate registries

NOT AT ALL. Türkiye has signed every exchange framework that matters and operates a public corporate registry. Whatever you do here (earn, hold, structure) is reportable, accessible, or both. Privacy is not the strategy in this jurisdiction.

Multilateral reporting frameworks 4/10 active · 3 pending
CRS
2018
CARF
FATCA
2014
MLI
2017
BEPS
MAAC
2018
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Türkiye itself a liability?

blacklists FATF standing

NO. Türkiye is clear of every major blacklist (FATF, EU, France, Spain, Portugal, Brazil) and sits inside FATF membership. Dealing with this jurisdiction is reputationally inert: no flags follow the transaction.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Türkiye?

press freedom crypto CBDC EU

NO. Press freedom in Türkiye is restricted (RSF rank #159). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.

Press freedom · RSF indexi
159/180
score 29 · ↓ 1 rank year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
Digital Lira
The main objective is to establish a financial sector with a strong institutional structure that can respond to the financing needs of the real sector at a low cost, offer different financial instruments to a wide investor base through reliable institutions and support Istanbul's goal of becoming an attractive global financial center.
Central Bank of the Republic of Turkey
PILOT
SEE ALSO

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