Turkey now has one of the most generous arrival regimes anywhere. If you move to Turkey from 2026 and haven't had a Turkish home or Turkish tax file for the previous three years, your foreign income and gains are free of Turkish income tax for 20 years.
This guide covers Turkish personal tax for people moving to or living in Turkey in the 2026 tax year (the calendar year), including the article 20/D exemption, the six-month residence rule, income tax rates, social security, and how pensions, investments and crypto are taxed.
The key question is simple. Does your income come from abroad, or from work and assets in Turkey? Under 20/D, Turkey treats the two very differently.
What's changed: Law No. 7582, published on 4 June 2026, added article 20/D to the Income Tax Law. It exempts foreign income for 20 years for people who become resident from 1 January 2026, and sets a 1% inheritance tax rate for them during those years. The Revenue Administration's rules followed in Communiqué Series No. 333 on 4 July 2026. The same law opened a voluntary disclosure window to 31 July 2027 for money and securities held abroad and brought to Turkey, taxed at 5%, or 0% to 4% if you keep them in Turkish deposits or government bonds for one to five years, with half a point added for disclosures from 1 January 2027. For 2026, the income tax bands rose by 25.49% and social security is charged on pay up to TRY 297,270 a month.
📋 Turkey tax at a glance for 2026
Topic | Details |
|---|---|
Tax system | Worldwide income for residents. New residents can exempt foreign income for 20 years under article 20/D |
Top income tax rate | 40% above TRY 5.3 million. Rates start at 15% |
All-in on a US$100k salary | About 38% (about TRY 4.94 million, single, including employee social security) |
Special regime | Article 20/D: 0% on foreign income and gains for 20 years, after three years with no Turkish home or tax liability |
Dividends, interest, capital gains | Taxed on the 15% to 40% scale. Half of a dividend from a Turkish company is exempt |
Crypto gains | No specific rule in the Income Tax Law |
Inheritance tax | 1% to 10% on inheritances (gifts 10% to 30%). A foreigner inheriting from a foreigner pays only on assets in Turkey; 1% under 20/D |
Residence at a glance | Getting in: easy (more than six months in a calendar year, or your home in Turkey). Leaving: a clean break once your home and stays move abroad |
Double tax treaties | A wide network, including the UK, the United States and Germany |
The 20-year foreign income exemption (article 20/D)
Why is Turkey suddenly on the list for retirees and investors? Because article 20/D takes everything you earn outside Turkey out of Turkish income tax for 20 years.
Image 1 — article 20/D takes foreign income out of Turkish tax for 20 years
You qualify if you become Turkish tax resident on or after 1 January 2026 and, in the three calendar years before the year you become resident, you had neither a domicile in Turkey nor Turkish tax liability. Owning Turkish property or shares doesn't spoil the look-back: earlier tax on Turkish rent, investment income or capital gains is allowed. A Turkish salary or a Turkish business in those three years does rule you out.
The look-back is strict. In the Revenue Administration's example, someone who left Turkey in November 2024 and returned in 2027 is refused, because they were resident in 2024.
What's covered: income and gains earned outside Turkey, such as a foreign pension, foreign dividends, rent from a home abroad and gains on foreign assets. You don't declare them at all.
What isn't: anything earned in Turkey. That includes Turkish rent, dividends from Turkish companies and fees for work you do in Turkey, even for clients abroad.
The trade-offs: costs linked to exempt income can't be deducted, and foreign tax paid on exempt income can't be credited against Turkish tax.
The exemption isn't automatic. You apply to your tax office for an exemption certificate by the end of the calendar year in which you became resident. If you became resident in November or December, the deadline is the end of February of the next year. Miss it and you can't apply later. If the conditions turn out not to have been met, the tax is collected with interest and a penalty.
There's also an inheritance tax benefit. For people using 20/D, inheritances during the 20 years are taxed at a flat 1%. The law doesn't extend this to gifts.
👉 Official Gazette: Law No. 7582, which adds article 20/D and the 1% inheritance rate (in Turkish)
👉 Official Gazette: Income Tax General Communiqué Series No. 333 on applying for 20/D (in Turkish)
When you become tax resident in Turkey
You're Turkish tax resident, and taxed on your worldwide income, if either of these applies:
your domicile is in Turkey, meaning the place you live with the intention of settling, as defined in the Civil Code
you stay in Turkey continuously for more than six months in a calendar year. Temporary trips abroad don't break the stay
Some foreigners aren't resident even after six months: people in Turkey for a specific, temporary assignment, students, people there for medical treatment, and tourists. If you're not resident, only your Turkish income is taxed.
Leaving is straightforward. Residence is tested each calendar year, so you stop being resident once your home has moved abroad and you no longer stay more than six months. If you leave during the year and have income to declare, your return is due in the 15 days before you leave. Non-residents pay no Turkish tax on foreign income, with or without 20/D.
👉 Income Tax Law No. 193: residence rules in articles 3 to 5 (in Turkish)
Income tax rates for 2026
Turkey taxes salaries, self-employed profits, pensions, rent and most investment income on one progressive scale. Salaries have slightly wider middle bands.
Turkey income tax rates for 2026
Taxable income | Rate |
|---|---|
Up to TRY 190,000 | 15% |
TRY 190,001 to TRY 400,000 | 20% |
TRY 400,001 to TRY 1,000,000 (salaries: TRY 1,500,000) | 27% |
Above that, up to TRY 5,300,000 | 35% |
Over TRY 5,300,000 | 40% |
Source: Income Tax General Communiqué Series No. 332, the 2026 tariff under article 103 of the Income Tax Law.
There's no general tax-free allowance. Instead, the part of a salary equal to the minimum wage after social security is exempt, which in 2026 is worth about TRY 57,900 of tax a year. The first TRY 58,000 of rent from a home is also exempt.
👉 Income Tax General Communiqué Series No. 332: 2026 tax bands and thresholds (in Turkish)
Worked example
We use the Central Bank of the Republic of Türkiye rate for 16 October 2026, about TRY 49.4 to US$1.
You're single and earn TRY 4,940,000 (about US$100k) in 2026 from a Turkish employer.
Your employee social security is TRY 535,086: 15% on pay up to the TRY 297,270 monthly ceiling.
Your income tax is TRY 1,326,339 on the salary scale, after the minimum wage exemption.
Your all-in bill is about TRY 1,861,425, or 38% of your salary. A small stamp duty is also taken from pay, which we haven't counted.
👉 Central Bank of the Republic of Türkiye: indicative exchange rates
Freelancing in Turkey
Self-employed professional income is taxed on the general scale, so a profit of TRY 4,940,000 (about US$100k) carries income tax of TRY 1,611,500. Business clients in Turkey usually withhold tax from your fees, which you then set against your annual bill.
You also pay your own social security as a self-employed (4/b) insured person: 35.75% of an earnings base you choose between TRY 33,030 and TRY 297,270 a month, or 30.75% if you pay on time. On the minimum base that's about TRY 121,900 a year, bringing the all-in bill to about 35%. On the maximum base it's nearer 55%.
Don't count on 20/D here. The Revenue Administration's guidance gives the example of an engineer in Turkey advising foreign clients: those fees are Turkish income and fully taxed. Article 20/D helps only with income earned outside Turkey.
👉 Social Security Institution (SGK): contributions for the self-employed in 2026 (in Turkish)
Crypto, investments and pensions
How is crypto taxed in Turkey? Turkey's Income Tax Law has no rule written for crypto gains, and the Revenue Administration hasn't published guidance on them. A long-term gain made as a private investor isn't clearly caught by the list of taxable capital gains, but trading on a business scale could be taxed as business income at up to 40%. Treat crypto as a grey area.
Without 20/D, investment income is taxed on the 15% to 40% scale. Half of a dividend from a Turkish company is exempt, and tax withheld by the company counts towards your bill. Dividends on a portfolio of foreign shares are taxed in full, with a credit for foreign tax. A US$1m foreign portfolio yielding 4% income and 4% gains (about TRY 3.95 million) would cost about 32%.
Foreign pensions are taxable for residents too: a US$40k pension plus US$20k of investment income would cost about 31% without 20/D. Under 20/D, both are exempt for 20 years and don't go on a return. Pensions paid by a foreign government can be taxed only in the paying country under many treaties.
Turkey has no wealth tax. Inheritance tax runs from 1% to 10% on inheritances and 10% to 30% on gifts, with half rates on gifts from parents, a spouse or children. The tax reaches assets in Turkey and a Turkish citizen's assets anywhere, so a foreigner inheriting foreign assets from someone who isn't a Turkish citizen pays nothing.
👉 Inheritance and Gift Tax Law No. 7338: scope and rates (in Turkish)
Social security
Employees pay 14% social insurance and 1% unemployment insurance, 15% in total, on pay between TRY 33,030 and TRY 297,270 a month in 2026. Employers pay 21.75% plus 2% unemployment insurance, with discounts of 2 points (5 points in manufacturing) available to most employers.
The ceiling is nine times the minimum wage, so contributions stop growing at about US$72,000 a year. If you're posted to Turkey by an employer abroad, a social security agreement between Turkey and your home country may let you stay in your home system.
👉 Social Security Institution (SGK): 2026 earnings floor and ceiling (in Turkish)
👉 Ministry of Labour and Social Security: 2026 minimum wage and contribution rates (in Turkish)
Double tax treaties
Does Turkey have double tax treaties? Yes. Turkey has a wide treaty network, and the Revenue Administration publishes the full list. Treaties in force include those with the UK (since 1988), the United States and Germany.
Under 20/D the treaties matter less, because Turkey doesn't tax your foreign income. They still decide where you're resident if two countries claim you.
👉 Revenue Administration (GİB): list of Turkey's tax treaties (in Turkish)
👉 GOV.UK: UK and Turkey double taxation agreement
👉 IRS: United States and Turkey income tax treaty
The digital nomad route
Turkey offers a Digital Nomad Identification Certificate through GoTürkiye, the official tourism portal. You need income of at least US$3,000 a month (US$36,000 a year), a university degree, and a work contract with a company, or business contracts with clients, outside Turkey.
It's open to nationals of about 35 countries, including the UK, the United States, Canada, Australia, Switzerland and most EU countries. You then apply for a digital nomad visa at a Turkish consulate and a short-term residence permit in Turkey.
There's no tax break attached. Stay more than six months in a calendar year and you're resident, and pay for remote work done in Turkey is Turkish income, so 20/D doesn't cover it.
👉 GoTürkiye: requirements for the digital nomad certificate and short-term residence
👉 Turkish Consulate General in Houston: digital nomad visa process and eligible nationalities
Who is Turkey good for?
How does Turkey compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including social security. Retirees and Investment income count article 20/D.
☑️ Who is Turkey good for? Tax ratings for expats in 2026
Expat profile | Turkey rating | Why |
|---|---|---|
Employees | Poor | About 38% all-in on a US$100k salary (about TRY 4.94 million), including 15% employee social security on pay up to TRY 297,270 a month. Article 20/D doesn't help, because pay for work done in Turkey is Turkish income. |
Freelancers (self-employed) | Poor | About 35% all-in on US$100k of fees: income tax at up to 35% on this profit, plus self-employed social security on the minimum base. Fees for work you do from Turkey count as Turkish income, even if your clients are abroad, so 20/D doesn't cover them. |
Retirees | Good | 0% on a US$40k foreign pension plus US$20k of foreign investment income for 20 years under article 20/D; without it, the same income costs about 31%. A foreigner inheriting from a foreigner pays inheritance tax only on assets in Turkey, at 1% in the 20/D years, but a spouse or children pay it too above a yearly exemption. |
Crypto gains | Good | Turkey has no tax rule written for crypto gains, so a long-term gain on a US$100k holding isn't clearly taxed. Frequent trading could be treated as business income at up to 40%. |
Investment income | Excellent | Foreign dividends, interest and gains on a US$1m portfolio are exempt for 20 years under article 20/D. Without it, they'd cost about 32% on the normal scale, which would rate Poor. |
Digital nomad visa | Good | Remote workers from about 35 countries can get a digital nomad certificate with income of US$3,000 a month, then a short-term residence permit. There's no tax break: stay more than six months and your pay is taxed on the normal scale. |
Filing and deadlines
Employees usually have tax taken through payroll. You file an annual return if you're self-employed or have other income to declare, such as Turkish rent or foreign income outside 20/D. Income covered by 20/D isn't declared.
For the 2026 tax year:
apply for the 20/D exemption certificate by 31 December 2026 if you became resident in January to October 2026, or by 28 February 2027 if you became resident in November or December
file your annual return between 1 and 25 March 2027
pay the tax in two equal instalments, in March and July 2027
👉 Income Tax Law No. 193: filing (article 92) and payment (article 117) (in Turkish)
Frequently asked questions
What is the 20-year foreign income exemption in Turkey?
Article 20/D of the Income Tax Law, added by Law No. 7582 in June 2026, exempts income and gains earned outside Turkey for 20 years. It applies to people who become Turkish tax resident from 1 January 2026 and had no Turkish domicile or tax liability in the three previous calendar years.
How do I apply for the 20/D exemption?
You apply to your tax office for an exemption certificate by the end of the calendar year in which you became resident, or by the end of February of the next year if you became resident in November or December. Late applications are refused.
Does 20/D cover remote work done from Turkey?
No. Pay or fees for work you physically do in Turkey are Turkish income, even if your employer or clients are abroad. They're taxed on the normal 15% to 40% scale.
How many days can I spend in Turkey without becoming tax resident?
You become resident if your domicile is in Turkey or you stay continuously for more than six months in a calendar year. Short trips abroad don't break the stay. Tourists and people on a specific temporary assignment aren't resident even after six months.
What are the income tax rates in Turkey in 2026?
Income is taxed at 15% up to TRY 190,000, 20% up to TRY 400,000, 27% up to TRY 1,000,000 (TRY 1,500,000 for salaries), 35% up to TRY 5,300,000 and 40% above that. Employees also pay 15% social security up to a monthly ceiling.
Does Turkey have inheritance tax?
Yes. Inheritances are taxed at 1% to 10% and gifts at 10% to 30%. A foreigner inheriting from a foreigner pays only on assets in Turkey, and inheritances during the 20 years of article 20/D are taxed at a flat 1%.
Where to go next
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Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
