Turkey

{"ftc_utility":"high","fbar_trigger_notes":"US expats residing in Turkey are required to maintain a Turkish bank account for most practical purposes including salary receipt and utility payments. Balances exceeding $10,000 in aggregate across foreign accounts trigger FBAR filing (FinCEN 114). Turkish lira accounts are subject to high inflation, so balances can fluctuate significantly. FATCA reporting applies; Turkish banks comply with FATCA information exchange.","ftc_utility_reason":"Turkey taxes residents on worldwide income at rates up to 40%. US expats earning Turkish-source income who do not use FEIE can claim the foreign tax credit against their US liability for Turkish income tax paid, which is generally effective given Turkish rates exceed or approach US rates at higher income levels. Even FEIE users may benefit from FTC on income above the exclusion ceiling.","presence_day_count_notes":"Turkey does not impose short-term visit restrictions that would structurally prevent accumulating 330 days outside the US. Standard tourist entry allows up to 90 days in any 180-day period under the e-visa or sticker visa; longer stays require a residence permit. US citizens taking up residence in Turkey can obtain residence permits without difficulty. The 330-day count for the physical presence test counts days outside the US regardless of country, so Turkey residency supports the test normally.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.27,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Turkish tax residents is taxed as ordinary income at progressive rates up to 40%. Treaty provisions may allocate taxing rights; the US-Turkey treaty generally gives Turkey primary taxing rights on pension income paid to Turkish residents.","tax_rate":0.4,"locally_taxed":true},"social_security":{"notes":"Under Article 18 of the US-Turkey treaty, US Social Security benefits paid to a Turkey resident are taxable in Turkey. The US-Turkey treaty does not contain a saving clause exception for Social Security equivalent to those in newer US treaties, but the US also retains limited taxation rights. Effective Turkish tax depends on total income and applicable brackets.","locally_taxed":true,"treaty_protection":true},"roth_distributions":{"notes":"Turkey does not recognize the Roth IRA structure. Qualified Roth distributions, while tax-free in the US, may be treated as foreign pension or annuity income in Turkey and subject to Turkish income tax. The treaty does not specifically exempt Roth distributions. US expats should seek specific advice on characterization under Turkish domestic law.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Turkey tax treaty (1997) covers pension and annuity income. Under Article 18, pensions and annuities paid to a resident of Turkey are taxable only in Turkey. US-source 401k and IRA distributions received by a Turkey tax resident are therefore taxable in Turkey as ordinary income at progressive rates up to 40%. The US taxes these distributions as well; the treaty does not create full exemption but the US foreign tax credit mechanism may apply to reduce double taxation.","tax_rate":0.4,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.4,"notes":"Turkey does not have a separate capital gains tax for individuals. Gains are generally included in gross income and taxed at progressive rates up to 40%. Certain exemptions apply for listed securities held beyond specific periods.","details":{"tax_type":"Capital Gains Tax","country_name":"Turkey","country_iso_code":"TUR","source_references":["PwC Worldwide Tax Summaries - Turkey","Turkish Income Tax Law No. 193"],"last_verified_date":"2026-06-03","general_description":"Capital gains in Turkey are taxed as ordinary income under the personal income tax system. Gains from the disposal of shares listed on Borsa Istanbul held for more than 2 years by individuals are exempt. Gains on immovable property held for more than 5 years are also exempt for individuals. Withholding tax applies at source on certain securities transactions.","corporate_capital_gains":{"rate":0.25,"tax_treatment":"Included in corporate taxable income and taxed at the standard corporate income tax rate of 25%. A 75% exemption applies for gains on the sale of immovable property and participation shares held for at least 2 years, subject to conditions."},"individual_capital_gains":{"rate":0.4,"tax_treatment":"Taxed as ordinary income at progressive rates up to 40%. Exemptions apply for listed shares held over 2 years and immovable property held over 5 years. Withholding tax at 10% applies to gains from disposal of investment fund units and certain listed securities for individuals."}}}

{"notes":"Dividends paid by Turkish resident companies to individual shareholders are subject to 10% withholding tax (reduced from 15% in 2021). Half of dividends received from Turkish corporations are exempt from personal income tax if the gross dividend does not exceed the annual declaration threshold; amounts above the threshold are included in income at the 50% level and taxed at progressive rates, with the withheld 10% credited against the liability.","rates":[{"rate":0.1,"type":"withholding","notes":"10% withholding tax on dividends paid to resident and non-resident individuals by Turkish corporations, effective since 2021."},{"rate":0.1,"type":"withholding","notes":"Non-resident individuals and foreign corporations receiving dividends from Turkey are generally subject to 10% withholding unless a tax treaty reduces this rate."}]}