Elite Sinerji-Blog-Tax Identification Number and Taxes in Turkey

In Turkey, the Tax Identification Number, also known as "Vergi Numarası" or "Tax Identity Number Turkey," is a vital ten-digit unique code required for all financial transactions and official processes in the country. It's assigned to both individuals and legal entities, including foreign companies.

How to Obtain a Tax ID Number in Turkey?

Turkish citizens automatically receive this number as part of their identity document (kimlik), typically at birth. In contrast, foreigners must obtain this number manually. This can be done by visiting a local tax office (Vergi Dairesi) or through the tax authority's official website. The process involves submitting an original and a copy of a foreign passport.

The procedure for obtaining a tax ID number is simple and takes about 15-30 minutes. After registration, the number is instantly integrated into Turkey's banking systems, facilitating various financial transactions.

Purpose of the Tax ID Number in Turkey

The tax ID number is essential for foreigners in Turkey for several reasons, including opening bank accounts, residency applications, tax payments, formal employment, contract signing, education, driver's licenses, notarial services, insurances, business operations, and property purchases.

Property Taxes in Turkey

Both sellers and buyers are required to pay a one-time tax (tapu harcı) during the property transaction process, equivalent to 6% of the property value stated in the title deed (tapu). This tax, usually borne by the buyer, depends on the property's cadastral value, which is based on land value and construction costs. In resort areas, this value often reflects the official assessment rather than the market value, influencing the tax amount.

Property Purchase Tax

Property owners in Turkey must pay an annual property tax (emlak vergisi), which ranges between 0.2% and 0.6%, depending on the type and location of the property. This tax is payable in two installments, in May and November. Owners also pay a yearly garbage disposal tax, which does not exceed 30 dollars.

Property Sale Tax

Owners selling property may incur a capital gains tax (gelir vergisi), calculated progressively. If the property is sold after five years from purchase, no capital gains tax is charged. Selling more than five properties within a year can be considered a commercial activity, attracting additional tax liabilities.

Inheritance and Gift Taxes

In Turkey, inheritance and gift tax rates range from 1% to 30%, based on the property's value. Inheritance tax rates vary from 1% to 10%, and gift tax rates from 10% to 30%.

Rental Income Tax

Owners renting out properties long-term must pay a rental income tax, calculated progressively. In 2024, tax rates vary from 15% to 40%. Taxation starts for incomes exceeding the non-taxable minimum, set at 33,000 Turkish lira for the year.

Income Tax in Turkey

Income tax rates are as follows:

- Up to 110,000 lira per month – taxed at 15%.

- Between 110,000 and 230,000 lira per month – taxed at 20%.

- Between 580,000 and 3 million lira per month – taxed at 35%.

- Over 3 million lira per month – taxed at 40%.