Turkey, the country with a lot to offer for those seeking for visa for turkey and the best location for easy residence permit, especially for people with high incomes.
Turkey has long been a popular tourist destination for many people, now even more so with the relaxation of visa requirements. Several of our customers have decided to emigrate permanently to Turkey and live there long term.
There have been a lot of changes to the VISA process for foreign nationals. The Turkish government has stated that from now on, a foreigner is required to have a residence visa when visiting Turkey. The process for getting this residency visa is just as important as having one.
Turkish citizens are eligible to apply for residence permit in the following cases:
To be a tax resident in Turkey, an individual must have their legal residency in Turkey or stay at least 6 months per year in the country. Persons who stay more than 6 months due to a temporary assignment, may be considered as non-residents.
Residential Visa For Turkey
Residents are subject to tax on their worldwide income, while non-residents pay taxes on their Turkish-source income.
Personal income is taxed at progressive rates up to 35% on income exceeding TRY110,000.
Capital gains are subject to personal income tax. This excludes gains from the sale of real property held for more than 5 years. Certain gains derived from the sale of shares and capital market instruments may be tax exempt.
Dividends received from local entities are usually 50% tax-exempt; those from non-resident entities are fully taxable. A minimum tax-exempt threshold may apply.
Interest income is taxed between 0% and 18% depending on its nature. Rental income is considered taxable income, but an exemption may apply subject to certain conditions.
Turkey has enacted controlled foreign companies (CFC) rules. This means that profits retained in foreign entities owned and/or deemed to be controlled by tax residents, may be attributable if certain conditions are met.
Real property tax is levied at rates that range from 0.1% to 0.3%, depending on the type of property. Both buyers and sellers of real property are subject to a transfer tax of 4% (2% for each party).
Gifts are taxed at progressive rates from 10% to 30% and inheritances between 1% and 10%.
There is no wealth tax in Turkey.
V.A.T. is levied at a 18% rate. Reduced rates of 8% and 1% may apply for certain goods and services.
With regard to corporate taxation, resident entities are subject to a 20% income tax on their worldwide income. To learn more about the Turkish corporate legal framework, taxes and tax treaties, check out incorporations.io/turkey.
This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property Tax Yes
- Transfer Tax Yes
- Inheritance Tax Yes
- Net Worth Tax No
- CFC Law