Turkey has established one of the most extensive double taxation agreement (DTA) networks in the region, with over 85 bilateral treaties in force. These agreements play a critical role in protecting foreign investors from being taxed twice on the same income, making Turkey an increasingly attractive destination for international business. This guide covers everything you need to know about Turkey’s DTA network as of 2026.
What Are Double Taxation Agreements?
A Double Taxation Agreement (also known as a Double Tax Treaty or DTA) is a bilateral agreement between two countries that determines which country has the right to tax specific types of income. These agreements prevent the same income from being taxed in both countries, eliminating a major barrier to international trade and investment.
DTAs typically cover corporate income tax, personal income tax, dividends, interest, royalties, capital gains, and income from professional services. They establish clear rules for determining tax residency and allocating taxing rights between the contracting states. For broader context on Turkish corporate rates, see our corporate tax in Turkey 2026 guide.
Turkey’s DTA Network - Key Treaty Partners
Turkey has active DTAs with over 85 countries spanning Europe, Asia, the Americas, Africa, and the Middle East. Key treaty partners include:
Europe
United Kingdom, Germany, France, Italy, Spain, Netherlands, Belgium, Austria, Switzerland, Sweden, Norway, Denmark, Finland, Poland, Czech Republic, Hungary, Romania, Bulgaria, Greece, Ireland, Portugal, Luxembourg
Americas
United States, Canada, Brazil, Mexico
Asia & Middle East
China, Japan, South Korea, Singapore, India, Pakistan, Malaysia, Indonesia, Thailand, Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, Oman, Israel, Iran
Africa & CIS
Russia, Kazakhstan, Azerbaijan, Georgia, Ukraine, Uzbekistan, Turkmenistan, Egypt, South Africa, Tunisia, Algeria, Morocco, Ethiopia, Sudan
Reduced Withholding Tax Rates Under DTAs
One of the most significant benefits of DTAs is the reduction of withholding tax rates. Turkey’s standard withholding tax rates (without a treaty) are:
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Dividends: 10%
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Interest: 0%-10% (depending on type)
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Royalties: 20%
Under DTAs, these rates can be significantly reduced. Here are some common treaty rates:
Country Dividends Interest Royalties
United States5%-15%10%-15%5%-10% United Kingdom5%-15%10%-15%10% Germany5%-15%10%-15%10% Netherlands5%-15%10%-15%10% China10%10%10% Russia10%10%10% UAE10%-12%10%10% Saudi Arabia5%-10%10%10%-12%
How to Benefit from DTAs
To claim reduced withholding tax rates under a DTA, the following steps are typically required:
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Tax Residency Certificate: Obtain a certificate of tax residency from your home country’s tax authority proving you are a tax resident
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Apostille/Notarization: Have the certificate apostilled or notarized depending on the country
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Turkish Translation: Provide a Turkish translation of the certificate
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Submit to Revenue Administration: File the certificate with the Turkish Revenue Administration before the withholding tax is applied
It is important to submit the tax residency certificate before the income payment is made. If the certificate is not provided in time, the standard withholding rate will apply, and the overpayment must be recovered through a refund process.
Permanent Establishment (PE) Rules
DTAs define what constitutes a “Permanent Establishment” in Turkey. Under most of Turkey’s treaties (based on the OECD Model), a PE is defined as a fixed place of business through which the enterprise carries on its business. This typically includes offices, branches, factories, workshops, and construction sites lasting more than 12 months. If a foreign company is deemed to have a PE in Turkey, it becomes subject to corporate tax in Turkey on the profits attributable to that PE.
Global Minimum Tax Impact (Pillar Two - 2026)
Starting in 2026, Turkey applies the OECD Pillar Two rules through a Qualified Domestic Minimum Top-Up Tax (QDMTT). Multinational enterprise groups with annual consolidated revenues exceeding €750 million face an effective minimum tax rate of 15% faces a minimum tax rate. This means that even if Turkish tax incentives reduce the effective tax below 15%, a top-up tax applies. These calculations are based on IFRS/UFRS standards rather than the Turkish Tax Procedure Law (VUK).
Frequently Asked Questions
How many double taxation treaties does Turkey have?
Turkey has more than 85 double taxation agreements in force, covering most of Europe, the Americas, Asia, the Middle East, Africa, and the CIS. The network includes major partners such as the United States, United Kingdom, Germany, China, and the Gulf states.
How do I claim a reduced withholding tax rate under a treaty?
You obtain a tax residency certificate from your home tax authority, have it apostilled or notarized, provide a Turkish translation, and file it with the Turkish Revenue Administration. The certificate must reach the payer before the income is paid; otherwise the full domestic rate is withheld and you have to reclaim the difference later through tax services in Turkey or your home-country procedures.
What withholding rates apply without a treaty?
The standard domestic rates are 10% on dividends, 0% to 10% on interest depending on the instrument, and 20% on royalties. A treaty often reduces these, for example to between 5% and 15% on dividends and to 10% on royalties, depending on the partner country and the level of ownership.
When does a foreign company create a permanent establishment in Turkey?
Most of Turkey’s treaties follow the OECD model, under which a permanent establishment is a fixed place of business such as an office, branch, or factory, or a construction site lasting more than 12 months. Once a permanent establishment exists, Turkey can tax the profits attributable to it.
Does the global minimum tax change how treaties work?
The Pillar Two rules from 2026 do not replace treaty relief, but for groups above EUR 750 million in consolidated revenue they add a 15% effective minimum tax. If treaty benefits and local incentives push the effective rate below 15%, a domestic top-up tax restores it to that level.
Can a treaty completely eliminate Turkish tax on my income?
Rarely in full. Treaties allocate taxing rights and reduce withholding rates, but they seldom remove Turkish tax entirely on Turkey-sourced income or on profits attributable to a permanent establishment. The practical goal is to avoid paying tax twice and to apply the lowest rate the treaty allows.
Celikel CPA - Your Partner in International Tax Planning
At Celikel CPA, we help international businesses structure their Turkish operations to maximize DTA benefits. Our services include withholding tax optimization, tax residency certificate management, transfer pricing documentation, PE risk assessment, and advisory on the new Global Minimum Tax rules.
Need expert guidance on double taxation? Contact us: yigit@celikelcpa.com | WhatsApp: +90 544 649 40 87
