Tax ID Number and Tax Liability for Foreigners in Türkiye

For foreigners who acquire real estate, set up a company or earn income in Türkiye, the tax identification number and the type of tax liability are the first matters to determine. The distinction between full and limited tax liability directly changes the scope of the income to be taxed. This article explains the framework of the subject.

🆔 Tax Identification Number

For foreign individuals, the foreigner identification number can be used in place of a tax identification number; for those who do not have one, a potential tax identification number is obtained from the tax office.

This number is required in transactions such as buying and selling real estate, opening a bank account, setting up a company and land registry procedures. For the general framework on the acquisition of real estate by foreigners, see the article on foreigners acquiring property in Türkiye.

🌍 Full and Limited Tax Liability

Under full tax liability, a person is taxed on all income earned inside and outside Türkiye. Under limited tax liability, only income and revenues earned in Türkiye are taxed.

The distinction is made according to criteria such as domicile and continuous residence in Türkiye for more than a certain period within a calendar year; temporary absences do not interrupt this period. This characterisation is the first issue discussed in disputes.

📑 Double Taxation and Declaration

The double taxation treaties to which Türkiye is a party determine which country will tax and whether a credit is available. Treaty provisions apply in priority to domestic legislation.

Obtaining the residence certificate is a precondition for benefiting from a reduced rate or an exemption. For foreigners earning rental income, the article on tax and declaration on rental incomeTR is relevant, and for capital gains on a sale, the article on value increase gainsTR.

📌 Related Topics

The subject is also connected with the topics of income tax declarationTR and corporate taxTR.

❓ Frequently Asked Questions