Istanbul Taxation for Foreign Business Owners
Turkey’s tax system can seem complex to foreign business owners, but understanding the basics is essential for compliant and profitable operations in Istanbul. This guide breaks down the key taxes you will encounter — corporate income tax at 25%, value-added tax (VAT) ranging from 1% to 20%, withholding taxes on dividends and service payments, and personal income tax for resident and non-resident individuals. We explain how each tax applies to different business structures, when payments are due, and what deductions and incentives are available. We also cover Turkey’s double taxation treaties, which can significantly reduce your tax burden if your home country has an agreement with Turkey. With proper planning, many businesses legally optimize their tax position.