Turkey

Social security contributions

Social security premiums, which are calculated on salary limits of a minimum of TRY 20,002.50 and a maximum of TRY 150,018.90 per month as of 1 January 2024, must be paid by the employer and the employee at rates defined according to labour categories. For Turkish nationals, the general rates are 20.5% (if certain conditions are satisfied, it is reduced by 5% to 15.5%) for the employer and 14% for the employee.

A foreign national who remains covered under the social security system of one’s home country is not required to pay Turkish social security premiums up to a maximum period of three months, provided proof of foreign coverage is filed with the local social security office. If there is a social security treaty between the home country and Turkey, the exemption period may be longer, depending on the treaty. If the employee is not subject to foreign social security, full contributions will generally be imposed in Turkey.

The employee's portion of the social security contributions is deductible in determining taxable income.

Unemployment insurance

Unemployment insurance premiums are calculated over an upper earnings level of TRY 150,018.90 per month as of 1 January 2024. The premiums are paid by the employee, employer, and the state at the following rates:

Foreign nationals qualify for this insurance on condition of reciprocity between Turkey and their home countries.

Consumption taxes

Value-added tax (VAT)

Deliveries of goods and services are subject to VAT at rates varying from 1% to 20%. The general rate is 20%. See the Other taxes section in the Corporate tax summary for more information.

Net wealth/worth taxes

There are no national wealth taxes in Turkey.

Inheritance, estate, and gift taxes

Recipients of property through inheritance or donation are subject to inheritance and gift tax at rates ranging from 1% to 30%. Tax paid in a foreign country on inherited property is deducted from the tax base as a deductible expense. Inheritance and gift tax is payable over a period of three years, in biannual instalments in May and November, except for lottery prizes, for which the related taxes are collected through withholdings at the time of payment.

Property taxes and high-value residence tax

Property tax is calculated in respect of each property at the tax value set at the year of acquisition, which is then revalued annually with the half of the revaluation rate announced by the Ministry of Finance. The rate of the tax on the taxable values of buildings is 0.1% if the building is used as residence and 0.2% for other buildings. The rate of tax on the taxable values of property in lands is 0.3%. These rates will be doubled in metropolitan areas.

Apart from the property tax, for residences located in Turkey with a value of more than TRY 12,880,000 for 2024, a new type of tax was introduced in 2019 to be calculated on the excess value of the residence. The applicable rates vary between 0.3% to 1.0%, depending on the value of the residence.

Stamp tax

Stamp duty currently applies at the rate of 0.759% over the gross salary for individuals receiving their income from a local payroll. For individuals filing tax returns, this duty is replaced with fixed filing fees currently amounting to TRY 467.20.

Local non-income taxes

There are no local taxes apart from some minor transaction charges and immovable property taxes imposed and collected by municipalities.