Turkey expat tax guide
Middle East · how a foreigner who moves to Turkey is taxed · 2026 · High-tax for movers
If you move to Turkey, you become a tax resident when legal residence/domicile in Turkey, or continuous presence over 6 months (over 183 days) in a calendar year. As a resident you are taxed on a worldwide basis — Residents are taxed on worldwide income; from 2026 a new 20-year exemption can shelter foreign-source income for qualifying newly-arriving residents (Law No. 7582). The top personal income tax rate is 40%. A foreign pension is treated as: Part of the worldwide tax base, but typically taxable only in Turkey under treaty pension articles; exemption is treaty-conditional. Turkey also offers the Law No. 7582 foreign-income exemption regime, which can sharply change this picture. It has a US tax treaty and lacks a US totalization agreement. Overall it reads as high-tax for movers for an inbound mover. General information, not tax advice — verify with Turkey's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Turkey expat tax at a glance
| Question | Turkey (2026) |
|---|---|
| When you become tax resident | Legal residence/domicile in Turkey, or continuous presence over 6 months (over 183 days) in a calendar year |
| Residency day-count trigger | 183 days |
| How residents are taxed | Worldwide — Residents are taxed on worldwide income; from 2026 a new 20-year exemption can shelter foreign-source income for qualifying newly-arriving residents (Law No. 7582). |
| Top personal income tax rate | 40% |
| Foreign pension treatment | Part of the worldwide tax base, but typically taxable only in Turkey under treaty pension articles; exemption is treaty-conditional |
| Foreign capital gains / dividends | Foreign capital gains taxed at progressive 15-40% via self-assessment; foreign dividends taxable (50% exemption only if a 50%+ holding and remitted to Turkey by the due date) |
| Special expat / non-dom / retiree regime | Law No. 7582 foreign-income exemption |
| US income tax treaty | Yes |
| US social-security totalization | No |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for Turkey, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to Turkey
The first thing that matters is tax residency: legal residence/domicile in Turkey, or continuous presence over 6 months (over 183 days) in a calendar year. The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, Turkey taxes your worldwide income, so income earned abroad is in scope unless a treaty or special regime says otherwise. The top 40% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Part of the worldwide tax base, but typically taxable only in Turkey under treaty pension articles; exemption is treaty-conditional. Foreign capital gains and dividends: Foreign capital gains taxed at progressive 15-40% via self-assessment; foreign dividends taxable (50% exemption only if a 50%+ holding and remitted to Turkey by the due date). These outcomes can be overridden by a double-tax treaty, which decides whether the source country or Turkey taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The Law No. 7582 foreign-income exemption regime
No traditional pensionado regime, but Law No. 7582 (in force 4 June 2026, for income from 1 January 2026) grants a 20-year income-tax exemption on all foreign-source income — including foreign pensions — for individuals who become Turkish tax resident having had no Turkish domicile and no Turkish tax liability in the prior 3 calendar years.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with Turkey's tax authority before relying on it.
US citizens and social security in Turkey
| Question | Turkey |
|---|---|
| US income tax treaty? | Yes |
| US social-security totalization agreement? | No |
| Tax basis for residents | Worldwide |
| Top personal income tax | 40% |
A US tax treaty with Turkey helps reassign taxing rights and reduce withholding, and US citizens lean on the Foreign Earned Income Exclusion and Foreign Tax Credit to avoid double income tax. With no totalization agreement, you can be exposed to social-security-type charges in both the US and Turkey. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to Turkey
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| Turkey (this country) | Worldwide | 40% | Law No. 7582 foreign-income exemption |
| Italy | Worldwide | 43% | Lump-sum flat tax + impatriate regime |
| Greece | Worldwide | 44% | 7% pensioner flat tax / non-dom EUR 100k |
| Cyprus | Worldwide | 35% | Non-dom (17 years) + expat exemptions |
| United States | Worldwide | 37% | FEIE / FTC for citizens abroad |
| Ecuador | Worldwide | 37% | 5-year new-resident territorial election |
Frequently asked questions
When do you become a tax resident of Turkey?
Legal residence/domicile in Turkey, or continuous presence over 6 months (over 183 days) in a calendar year. The headline trigger is 183 days. Once resident, Turkey taxes you on your worldwide income. This is general information for 2026, not tax advice — verify with the official authority.
How does Turkey tax a foreign pension?
Part of the worldwide tax base, but typically taxable only in Turkey under treaty pension articles; exemption is treaty-conditional. Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the Law No. 7582 foreign-income exemption regime in Turkey?
No traditional pensionado regime, but Law No. 7582 (in force 4 June 2026, for income from 1 January 2026) grants a 20-year income-tax exemption on all foreign-source income — including foreign pensions — for individuals who become Turkish tax resident having had no Turkish domicile and no Turkish tax liability in the prior 3 calendar years. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with Turkey's tax authority.
Is Turkey good for US citizens or retirees?
Turkey has a US income tax treaty and does not have a US social-security totalization agreement. Without a totalization agreement, you can owe social-security-type contributions in both the US and here. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for Turkey compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Top rate 40% on income over TRY 5,300,000 (2026). No US totalization agreement. Law 7582 is a brand-new 2026 regime — verify on an official source before relying on it. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with Turkey's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21