Are you a digital nomad or an expat looking to make Turkey your new home? Acquiring tax residency in Turkey can open up a world of opportunities. Follow this detailed guide to understand each step you need to take to become a tax resident in Turkey.
Step 1: Determine Your Eligibility
To become a tax resident in Turkey, you must either reside in Turkey for more than six months in a calendar year or establish significant connections to the country. Significant connections can include owning property, having family members in Turkey, or conducting business activities.
Step 2: Obtain a Residence Permit
Before you can apply for tax residency, you need to obtain a residence permit. This involves submitting an application to the Directorate General of Migration Management (DGMM) and providing necessary documents such as your passport, proof of income, and health insurance.
Step 3: Register Your Address
Once you have your residence permit, you need to register your address with the local Nüfus Müdürlüğü (Population and Citizenship Directorate). This is a mandatory step and requires presenting your residence permit and proof of address, such as a rental contract or property deed.
Step 4: Apply for a Tax Identification Number
With your residence permit and registered address, you can apply for a Tax Identification Number (TIN) at the local tax office (Vergi Dairesi). You will need to fill out an application form and provide your passport, residence permit, and proof of address.
Step 5: Declare Your Income
As a tax resident, you are required to declare your worldwide income to the Turkish tax authorities. This involves filing an annual tax return, which can be done online via the GİB (Revenue Administration) website. Ensure that you keep accurate records of your income and any taxes paid in other countries.
Step 6: Comply with Tax Obligations
Once you have declared your income, make sure to comply with all tax obligations in Turkey. This includes paying any taxes due and adhering to deadlines for filing and payments. Failure to comply can result in penalties and interest.
Legal References
- Law No. 193 on Income Tax (Gelir Vergisi Kanunu)
- Law No. 6458 on Foreigners and International Protection (Yabancılar ve Uluslararası Koruma Kanunu)
- Turkish Civil Code (Türk Medeni Kanunu)
- Turkish Tax Procedure Law (Vergi Usul Kanunu)
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