Turkey - Other taxes and levies

Turkey - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes1 in Turkey? If so, what are the rates for employers and employees?

Employer and employee

Type of insurance Paid by employer Paid by employee Total
Short-term social security contributions 
2.0% 0.0% 2.0%
Disability, old age, death 11.0% 9.0% 20.0%
General health insurance 7.5% 5.0% 12.5%


All employees, including foreign nationals, are subject to compulsory social security. Only the application of unemployment insurance is exceptional for a foreigner, depending on the existence of reciprocal provisions between his/her home country and Turkey. On the other hand, in the case where an assignee remains in the social security system in the home country and substantiates his/her social security coverage through a document received from the competent authority in his/her home country, he/she is not subject to social security in Turkey.

Contributions are payable by both the employer and the employee based on the employee’s salary. The rates stated above are applied to the gross total of salaries, wages and bonuses up to a current maximum monthly of TRY10.705,50  for the whole year 2016. In calculating the income withholding tax on the wages by the employer, the employee contribution is deducted from the withholding tax base.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes2 in Turkey?  

There is no wealth tax in Turkey.

The free transfer of title to property (immovable or movable) is potentially subject to inheritance and transfer tax. Tax rates vary between 1 percent and 30 percent.

The sale of immovable property is subject to a title deed registration fee at 1.5 percent on the sale price. Both the seller and the purchaser are liable to pay the 1.5 percent separately.

Real estate tax

Are there real estate taxes in Turkey? 

Building and land tax are taxes imposed by the real estate tax3 law. The tax base is the fair market value and it may be less than the value calculated in accordance with certain criteria set for each region. The rate of building tax is 0.2 percent (0.1 percent on residences) and the rate of land tax is 0.1 percent (0.3 percent on building sites). Land taxes are applied as twice of the standard rate in some cities. There is also environment tax payable to local municipalities whose filing and payment dates are attached to those of building and land taxes. 

Sales/VAT tax

In Turkey, delivery of goods and services with respect to commercial, industrial, agricultural and independent professional activities, and importation of goods and services are subject to VAT:

  • general: 18 percent 
  • basic food stuff, textile products, and so on: 8 percent 
  • certain agricultural products, financial leasing services, and so on: 1 percent.

Unemployment tax

Are there unemployment taxes in Turkey? 

In Turkey, both employees and employers are subject to unemployment insurance at a rate of 1 percent and 2 percent. The rates are applied to the gross total of salaries, wages, and bonuses up to a current maximum monthly of TRY10.705,50  for the whole year 2016.

Other taxes

Are there additional taxes in Turkey that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on. 

The remunerations paid through payroll are subject to %07.59 percent stamp duty on their gross amount.


1Turkish Social Security Code (The Code 506).

2Turkish Gift and Inheritance Tax Code (The Code 7338), Turkish Fees Code (The Code 492).

3Turkish Real Estate Tax Code (The Code 1319).

© 2016 Yetkin Yeminli Mali Müsavirlik YMM AS, a Turkey partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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