Useful Information
Guides for Living, Working and Investing in TurkeyWe have compiled these guides to help our foreign clients understand Turkish law, tax and business practices. Please contact us if you have any questions.
With a view to eventually joining the European Union, the Turkish legal system has been integrated with the continental European system incorporating elements from Swiss, German, French and Italian codes. However, expats living in Turkey do need to be aware of the differences in inheritance law, as do those who purchase immovable property in the country.
The main principle is that property is regulated by the laws of the country in which it is located. This means that if you own property in Turkey, Turkish law is the applicable law when it comes to inheritance.
Statutory Heirs — Order of Priority
- First: Children of the deceased
- Second: Parents and their offspring (brothers/sisters)
- Third: Grandparents and their offspring
- If no surviving heirs: the government
Spouse's Statutory Share
- Sharing with children: 25%
- Sharing with parents: 50%
- Sharing with grandparents: 75%
- No surviving heirs: 100%
Once you move abroad and complicate everything from your tax liability to the location of your assets, having a will becomes more important than ever. Without a valid will, you die intestate — and this can have devastating consequences for your loved ones.
Why Expats Need a Turkish Will
- Turkish property is governed by Turkish law, regardless of your home country's will
- A foreign will that does not comply with Turkish law may be invalid in Turkey
- Without a will, your family may face legal battles and unexpected tax burdens
- Unmarried partners and non-biological children receive nothing under intestacy rules
How to Make a Valid Will in Turkey
- You must be of sound mind and over 15 years of age
- Wills can be made on an official form, handwritten, or orally before a public notary or Justice of the Peace
- A holograph will is written entirely in the testator's handwriting and deposited with a court or notary
- Your will must cover all jurisdictions where you hold assets
If you leave your estate to your spouse, such a transaction is Inheritance Tax free as your spouse is an exempt beneficiary. However, if your dispositions exceed the reserved portions in the Turkish Civil Code, they will likely be reduced. Contact us to draw up a Turkish will tailored to your situation.
Turkey has one of the most competitive corporate tax rates in the OECD region. The Turkish tax regime can be classified under three main headings: Income Taxes, Taxes on Expenditure, and Taxes on Wealth.
Income Taxes
- Corporate income tax: 20%
- Personal income tax: 15% – 35%
- Dividends withholding: 15%
- Bank deposits withholding: 15%
- Employer social security contribution: 19.5%
- Employee social security contribution: 14%
Taxes on Expenditure
- VAT: 1%, 8% or 18% (varies by product/service)
- Special Consumption Tax on petroleum, vehicles, tobacco, alcohol, luxury goods
- Banking & Insurance Transaction Tax: 5%
- Stamp duty: 0.165% – 0.825% of document value
Taxes on Wealth / Real Estate
- Residences: 0.1%
- Other buildings: 0.2%
- Inheritance & gift taxes apply
- Motor vehicle tax applies
- Exports of goods/services: VAT exempt
Foreigners with a valid residence permit (valid for a minimum of 6 months, except for residence permits for educational purposes) can apply directly to the Ministry of Labour and Social Security for a work permit.
Required Documents
- Application for a work permit addressed to the Ministry of Labour and Social Security
- Expatriate personnel application form
- Notarised copy of passport (translated into Turkish)
- Notarised copy of diploma (translated into Turkish)
- Curriculum Vitae
- Written application from the employer
- Balance sheet and profit & loss statement certified by tax authorities
- For foreign direct investments: Trade Registry Gazette showing capital and shareholding structure
If the applicant is an engineer or architect, additional approval is required from the Higher Education Council and the Union of Chambers of Turkish Engineers and Architects.
Promissory notes are commonly used in Turkish commercial and daily life for the purchase of services and goods. A promissory note is a written promise by a legal or private person committing to pay a specified sum of money on a fixed or determinable future date, with or without interest.
Required Elements (Turkish Commercial Code Art. 688)
- The wording "promissory note" (in the relevant language)
- Unconditional promise to pay a definite sum (in TL or foreign currency)
- Maturity date (absence does not invalidate — deemed payable on submission)
- Name of the beneficiary
- Signature of the drawer
- Date and place of issuance
Key Points to Know
- Promissory notes are negotiable instruments
- The promise of payment must be unconditional
- Anyone can issue a promissory note regardless of credit standing
- They are not as strong as bank cheques but are trusted instruments in financial transactions
When buying property in Turkey, a private sales contract links both parties to what is agreed, but it is not sufficient to register the property in the Land Registry unless it is notarised. Here are the most important aspects to check:
Essential Checks Before Signing
- If you don't master Turkish, obtain a professional translation
- Confirm the contract is signed by all owners or their duly authorised proxies
- If the seller is an heir, verify all inheritance documents are in order
- If the property was rebuilt/renovated, ensure a Work Licence was obtained from the Town Hall
- Verify the property is free of charges, loans and encumbrances
- Check outstanding Community of Owners payments
Related Expenses to Mention in Contract
- Notary fees
- Solicitor fees
- Title deed registrar fees
- Transfer taxes
- Utility connection fees
- Habitation certificate fees
- Expert valuation fees
- Currency Exchange Certificate fees
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