Tax Rates in Turkey for Expats in 2022

More and more people are choosing Turkey as a place to start a business or work. This is due not only to the quality service, affordable prices and excellent climate. In Turkey, you can bring your income to a new level. This country offers a favorable taxation system.

The expert of the agency Immigrant Invest Victoria Atanasova notes that the rate increases proportionally to the level of income.

Income scaleRate
up to 24000 liras15 %
24001-53000 liras20 %
53001-190000 liras27 %
190001-6500035 %
over 650000 liras40 %

These are the rates established in this country. Due to this, citizenship in Turkey is considered so profitable. The legislation of this country is in accordance with international norms. That is why corporate tax in Turkey looks reasonable.

Features of Turkey tax rate

As in every country, the fiscal system here has its own norms and peculiarities. Each businessman should take them into account. In general, taxes in Turkey can be divided into three categories. The first is the income tax. It is divided into a corporate tax, as well as one that is taken from individuals. 

Individuals can receive income from:

  • agricultural activities;
  • businesses;
  • salaries;
  • personal services;
  • sale or rental of real estate;
  • other services.

The Turkey tax system is arranged in such a way that people will pay from 15% to 40% of their profits. Here you can learn more about this issue – https://immigrantinvest.com/blog/taxes-in-turkey-en/

The second type is corporate. It applies to companies, cooperatives, business enterprises, and joint ventures. For Turkish offices, the tax in 2022 is 23%. Compared to 2021, the figure has decreased by 2%. This is further proof that the country has created benefits for those who are engaged in their business. The state understands how important it is to support business, so it is ready to provide companies with certain preferences. 

Taxes on expenses imposed in Turkey

The next type of taxation involves a collection from expenses. It includes several main components:

  1. VAT. At this stage, the rates of 1%, 8% and 18% are set. Income tax in Turkey covers many areas: from importing goods to providing services.
  2. Special tax on consumption. Special rates are set for petroleum products, cars and other vehicles, cigarettes, alcohol, luxury goods. The peculiarity of this consumption tax is that it is charged only once.
  3. Tax on financial transactions and insurance business. This sphere does not pay VAT in 2022. Instead, another tax is provided for them. It may apply, for example, to interest on loans. Even deposits are taxed at the rate of 1%.
  4. Stamp tax. It applies to various official documents. For example, contracts, bills of exchange, statements, financial reports. It is calculated on the basis of the value of the document. The rate is not more than 0.948%. It can be set as a fixed amount for some financial documents.

Such a guide allows you to clearly see that this country has a special attitude towards different areas. This should definitely be taken into account before moving or opening your own business. Study all the data beforehand, so that you can quickly pay all the taxes in the future. 

What Turkish taxes are stipulated on wealth

The last type of tax applies to wealth. In this regard, Turkish taxes are arranged approximately the same as in other countries. They include: 

  • real estate taxes;
  • transport tax;
  • inheritance and donation taxes.

Apartments, houses and land are taxed. The rate ranges from 0.1% to 0.6%. A fee is charged during the sale. It goes to the preservation of immovable cultural property, which has Turkey. Its size is 10% of the transaction.

Transportation fee is detailed in the legislation. It depends directly on the duration of the engine, as well as its power. Therefore, the figure may vary. However, legislators always prescribe specific amounts in advance. 

Turkey tax rate on inheritance and donation also varies considerably. The rate can range from 1% to 30%.

Take into account such advantages, hospitable people, as well as the ability to quickly develop your business. This will allow you to finally decide whether this country is suitable for your business.

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