What are the types of taxes in Turkey ?

Created: 2021-05-14
Last Updated: 2025-12-19
Views: 9013

Content Index

First: Income Tax in Turkey:
Second: Consumer spending taxes:
Third: wealth and property taxes:

In the event that you want to invest in Turkey or settle in it, you must familiarize yourself with the Turkish tax law and the types of taxes in Turkey, which we will talk about in detail as follows:
Taxes in Turkey are classified into three basic groups:
Income Taxes .
Consumer spending taxes.
Wealth and property taxes.
In the following, we will explain the differences between them:

First: Income Tax in Turkey:

The income tax is a tax imposed on the annual net profits and this in turn is divided into two parts: a personal income tax and a corporate income tax.
* Speaking about the income tax for individuals, we will get to know its components that the individual must pay tax for, which are:
1 - Business profits.
2- Agricultural profits.
3- Profits from entrepreneurship.
4- Monthly salaries.
5- Returns of immovable capital.
6 - Returns from transferred capital.
And this tax is imposed on anyone who resides in Turkey for a period of more than 6 months during one year, as he must pay income tax on all his profits that he makes inside and outside the Turkish lands, but in the event that he resides in Turkey for a period of less than 6 months during the year One, the income tax is imposed only on his profits inside Turkish territory.
* And by moving to the income tax of companies and institutions, it is imposed on all companies, associations, establishments and joint ventures that generate money and is calculated from the net profits and the tax rate ranges from 20% to 22% and the lower percentage is often adopted by The Turkish government, and this tax is collected when profits are distributed to all partners.

Second: Consumer spending taxes:

There are four sections for this tax, which we will list consecutively, and they are:
1- Value-added tax (KDV): This tax is paid as a percentage of the price of the product, goods, or even services, and it is added to the original price of the product, and there are three percentages that are applied according to the products:
- 1% is imposed on purchases of wheat and its derivatives, in addition to real estate whose area exceeds 150 meters.
- 8% is imposed on purchases of basic consumer products such as meat, milk, eggs, honey, and others.
-18% is imposed on non-essential products such as furniture, electrical appliances, spices, etc.
And there are many cases in which the value-added tax is exempted, which are: all Turkish exports, services of sea ports and airports, equipment and imported equipment for the purpose of investment, goods deliveries that take place through diplomats, but the same treatment is required, services Transit transport, oil exploration activities, manufacturers inside the free zones.

2 - Special consumption tax (SCT): Four groups of products are subject to this tax, and the tax rate varies according to the product and is paid only once, and these groups are:
Petroleum products and their derivatives.
Alcoholic products and tobacco.
Motorized vehicles of all kinds, including cars, planes, and ships.
- Recreational products.

3 - Banking and insurance transactions tax: This tax is calculated from the income that is gained from banks, and the upper limit of the insurance and banking transactions tax is 5%, while the interest tax due on deposit transactions is 1%, and the tax resulting from transactions has been canceled. Foreign exchange in 2008.

4- Stamp tax: This is imposed on the process of extracting papers and documents, and it is either different according to the type of document or it is as a fixed percentage according to the value of this document.

Third: wealth and property taxes:

And this type of taxes is divided into three basic groups, which are:
A - Real estate ownership taxes:
These, in turn, have many types:
1 - Purchase tax: This tax is paid only once when buying a property in Turkey, and its value varies according to the area, location, type, and price of one meter of the property, ranging from 1% to 18%.
2 - Tabu Tax: This tax is paid upon registering the property in the Land Registry. Its value is 4% of the property value specified in the market, and it is paid equally between the buyer and the seller.
3 - Municipal tax: All real estate located within a specific municipality area must pay an annual sum of money in exchange for all the services that this municipality performs to ensure a comfortable stay and to improve the area. The rate of this tax is 0.03% of the property value in the Turkish real estate market .
4 - Real estate property tax: This tax concerns all apartments, land and owned real estate, and its percentage ranges from 0.01% to 0.06%, in case the property is not historical or archaeological, as the tax value on this type of real estate is 10%.
5 - The disaster insurance tax: It is an annual amount paid for insurance against earthquakes and natural disasters.

B - car taxes:
This tax is paid annually, and its value is calculated according to the age of the car and its engine power.

C - inheritance tax and gifts:
It is paid only once when the ownership is transferred to the new owner, and its percentage ranges from 1% to 30% depending on the type of this property and the kinship between the two parties.

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What are the types of taxes in Turkey ?

First: Income Tax in Turkey:

Second: Consumer spending taxes:

Third: wealth and property taxes: