Are there social security/social insurance
taxes1in Turkey? If
so, what are the rates for employers and employees?
Employer and employee
Disability, old age,
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
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.
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
general: 18 percent
basic food stuff, textile products,
and so on: 8 percent
certain agricultural products,
financial leasing services, and so on: 1 percent.
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.
Are there additional taxes in Turkey that may be
relevant to the generalassignee? 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.
1. Turkish Social Security Code (The Code
2. Turkish Gift and Inheritance Tax Code (The Code 7338),
Turkish Fees Code (The Code 492).
3. Turkish Real Estate Tax Code (The Code
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guide to the subject matter. Specialist advice should be sought
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