Foreign nationals in Turkey are taxed on the basis of residence, not nationality. Whether you owe Turkish tax on your worldwide income or only on income arising in Turkey depends on where you are treated as resident under Income Tax Law No. 193, and that question is decided by your actual circumstances rather than by which passport you hold or where your salary is paid.
The First Step: a Turkish Tax Number
Almost nothing can be done without a tax identification number. It is required to buy property, open a bank account, register utilities and complete most official transactions. Obtaining one is straightforward. The problems start afterwards, when a number exists and obligations attach to it that nobody explained.
Are You Tax Resident in Turkey?
Turkish law looks at where you are settled and how long you stay. Residence is not something you elect. People who spend most of the year in Turkey, whose home and family are here, or who run their economic life from here, can be treated as liable to Turkish tax on their worldwide income while they are still filing abroad and assuming nothing has changed.
Turkey has double taxation treaties with many countries, including the United Kingdom. A treaty can decide which country has the right to tax a particular item of income, and can give relief for tax already paid. But treaty relief must be claimed deliberately, with the right certificates in place. It is not automatic, and it is not applied retrospectively as a courtesy.
Property: Three Different Charges, Often Confused
- Title deed fee on the transfer, under Fees Law No. 492, calculated on the value declared at the registry. Under-declaring that value to reduce the fee creates a risk that surfaces later, both on resale and in residence permit assessments that look at the registered purchase price.
- VAT on certain first-hand purchases, where an exemption may be available to buyers who meet the conditions in VAT Law No. 3065. The exemption carries conditions on how long the property is held and on how the purchase money is brought into Turkey.
- Annual real estate tax under Real Estate Tax Law No. 1319, payable to the municipality for as long as you own the property.
Rental Income, Gains and Inheritance
Income from letting a Turkish property is declarable, including by owners living abroad. Gains on sale can be taxable depending on how long the property was held and how it was used. Inheritance and gift tax applies to assets passing in Turkey, and heirs abroad often learn of it only when a transfer is blocked. Each of these has its own filing deadlines, and Tax Procedure Law No. 213 attaches penalties and interest to late or missing declarations.
When an Assessment Has Already Landed
Assessments and penalty notices can be challenged, and there are settlement and appeal routes with strict deadlines. A notice ignored because it arrived in Turkish, at an old address, or while the taxpayer was out of the country does not stop those deadlines running.
What We Do
We advise foreign individuals and companies on Turkish tax residence, double taxation treaty relief, the tax consequences of buying and holding property, declaration of rental income, and inheritance and gift tax. We represent clients in objections, settlement and tax litigation.
We do not quote figures without checking them. Rates, thresholds and exemption conditions change, and they change with effect from specific dates, so we confirm the position that applies to your transaction rather than repeating a number that was correct last year.
Speak to a Tax Lawyer
Contact our office or call +90 530 949 29 91.