In Turkey, residency determines whether you are obliged to pay income tax. If you are considered a Turkish resident, you will be subject to Turkish income tax. You are exempt from paying taxes if you are not a Turkish resident, with the exception of taxes on earnings earned in Turkey, such as real estate taxes.
Option . 1
If a foreign individual has gained the status of resident in Turkey, he or she will be required to pay tax. Foreign capital holders will be considered Turkish residents if they have obtained legal Turkish residence or spend more than six months in Turkey in any given tax year (the “six-month” rule). If a foreign individual is declared to be a resident of Turkey, he or she will be forced to pay taxes on all of his or her global income, regardless of where it comes from.
Option . 2
If a foreign individual is not considered a Turkish resident, he or she will only pay tax on income obtained from commercial activities in Turkey or real estate ownership in Turkey. Therefore, the individual will become a “restricted taxpayer.” Residents who stay in Turkey for more than six months only for the purpose of performing an official task or assignment, such as diplomats and likewise, are restricted tax-payers.
Turkish real estate taxes (payable by anyone regardless of residency) are quite reasonable vis a vis other European nations.
Taxation and Real Estate in Turkey
In Turkey, residency determines whether you are obliged to pay income tax. If you are considered a Turkish resident, you will be subject to Turkish income tax. You are exempt from paying taxes if you are not a Turkish resident, with the exception of taxes on earnings earned in Turkey, such as real estate taxes.
Option . 1
If a foreign individual has gained the status of resident in Turkey, he or she will be required to pay tax. Foreign capital holders will be considered Turkish residents if they have obtained legal Turkish residence or spend more than six months in Turkey in any given tax year (the “six-month” rule). If a foreign individual is declared to be a resident of Turkey, he or she will be forced to pay taxes on all of his or her global income, regardless of where it comes from.
Option . 2
If a foreign individual is not considered a Turkish resident, he or she will only pay tax on income obtained from commercial activities in Turkey or real estate ownership in Turkey. Therefore, the individual will become a “restricted taxpayer.” Residents who stay in Turkey for more than six months only for the purpose of performing an official task or assignment, such as diplomats and likewise, are restricted tax-payers.
Turkish real estate taxes (payable by anyone regardless of residency) are quite reasonable vis a vis other European nations.