Tax numbers for foreigners, full and limited tax liability
For foreigners living or investing in Türkiye: the tax identification number, residence criteria, the difference between full and limited tax liability, exceptions, taxation by type of income, filing obligations and the link with double taxation.
The first thing a foreigner renting a home, opening a bank account, forming a company or buying property in Türkiye needs is a tax number. The second question is more important: on which income will Türkiye tax this person?
1. Tax number
| Situation | Tax number |
|---|---|
| Has a residence permit in Türkiye | The foreign identity number beginning with 99 is used as the tax number |
| No residence permit | A tax identification number is obtained with a passport from any tax office or the Revenue Administration's online services |
| Will be a company partner or manager | A tax number must be obtained before formation |
Obtaining a tax number does not automatically make a person a taxpayer. It serves as an identification number for bank accounts, title deeds, vehicles and utility subscriptions.
2. Full or limited taxpayer?
In the Turkish income tax system, what matters is not a person's citizenship but whether they are deemed resident in Türkiye.
Deemed resident in Türkiye (full taxpayer):
- Those whose domicile is in Türkiye,
- Those staying in Türkiye continuously for more than six months in a calendar year. Temporary absences do not interrupt the period of stay.
Not deemed resident even if staying more than six months:
- Business people, scientists, experts, officials, members of the press and correspondents who come to Türkiye for a specific and temporary job,
- Those who come for medical treatment, rest, study or tourism.
| Full taxpayer | Limited taxpayer | |
|---|---|---|
| Income taxed | All income earned in Türkiye and abroad | Only income earned in Türkiye |
| Tax paid abroad | Can be credited against Turkish tax under certain conditions | — |
| Double tax treaty | The treaty's rules also apply in determining residence | The treaty may limit Türkiye's taxing rights |
For persons treated as resident both in Türkiye and in another country, which country has priority is determined by the criteria in the double tax treaty (permanent home, centre of vital interests, nationality): DTTs and certificate of residence
3. Limited taxpayers by type of income
| Income | Taxation |
|---|---|
| Wages from an employer in Türkiye | The employer withholds; in most cases no filing is needed: Salary calculator |
| Residential rental income | If the tenant does not withhold, it is declared on an annual return; the exemption amount is assessed separately for limited taxpayers: Rental income return |
| Commercial rental income | The tenant (business) withholds: Rent withholding |
| Dividends from a Turkish company | The company withholds; the rate may be lower under a treaty: Dividends |
| Bank deposit interest | The bank withholds; no filing needed |
| Gains on the sale of real estate | For property sold within a certain period, capital gains are declared |
| Professional activity in Türkiye | Withholding and, if required, filing |
Whether income is earned in Türkiye is determined by criteria such as the work being done or used in Türkiye.
4. Filing and payment
- For income requiring filing, the annual income tax return is filed in March: Annual income tax return
- For some income of limited taxpayers (for example occasional gains), a separate return is filed.
- It is recommended to settle tax debts before leaving Türkiye.
5. Common situations
"I bought a home in Türkiye and rented it out." The rental income is taxed in Türkiye; let us check together whether filing is required.
"I work remotely for a company abroad and live in Türkiye." If you stay for more than six months, you may be a full taxpayer and this wage may be taxed in Türkiye. This affects the obligations of both you and your employer abroad.
"I am a partner and manager in a Turkish company." Being a partner and manager also raises social security and work permit issues: Company formation for foreigners
Our related service: Foreign investors
Legal basis: Income Tax Law No. 193 arts. 3, 4, 5, 6, 7, 94, 101 and 123; Tax Procedure Law No. 213 art. 8.