Western Asia · Asia

Turkey

52moderate

Overall Score

Turkey is a Western Asia jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 25%. The jurisdiction offers a golden visa programme for qualifying individuals.

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Corporate Tax

25%

Personal Income Tax

40%

Capital Gains

10%

VAT / GST

20%

Overview

Key Data

Taxation

Personal Income Tax (max)40%

Personal Income Tax (min)15%

Corporate Tax Rate25%

Capital Gains Tax10%

VAT / GST20%

Dividend Tax Rate15%

Withholding Tax15%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesYes

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaNo

Golden VisaYes

Retirement VisaNo

Investment VisaYes

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index35/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easegood

Internet Qualitygood

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusgrey_list

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Turkey is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

Removed from FATF grey list June 2024. Citizenship by investment: $400k real estate. Golden Visa: $500k investment. EU grey list (Annex II). CIT raised to 25% in 2023 (was 20%). Very high inflation 2022–23 (Lira collapse). Large domestic market. Istanbul tech hub (Teknopark). Earthquake risk.

Company Setup & Business Taxation

The standard corporate income tax rate is 25%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Account opening in Turkey can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Compliance & International Reputation

Turkey is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: grey_list. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Turkey ranks highest for Digital Nomad and Freelancer. It offers a reasonable proposition for digital nomad (score: 57/100). It offers a reasonable proposition for freelancer (score: 52/100).

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.