Digital Nomad Visa Tax Advantages Turkey
Turkey’s Tax Advantages for Remote Workers Under the Latest Law
When considering a new country to work as a digital nomad, there are several factors to take into account.
The first one is of course taxation (utmost %5 income or corporate income tax) besides taxation;
Ease of entry and visa status, reliable internet infrastructure, cost of living, availability of coworking spaces or laptop-friendly cafes, culture, activities, and lifestyle of the city, and community and social events.
Turkey’s Tax Advantages for Remote Workers Under the Latest Law
1- Significant tax benefit for some services provided abroad
The recent amendments under Article 89/1–13 of the Income Tax Law present a substantial tax benefit that makes Turkey an attractive choice for individuals and digital nomads engaged in remote work and also companies rendering below services abroad
Architecture,
Engineering,
Design, software, medical reporting,
Accounting record keeping,
Call centers, product testing, certification abroad, and education and health services provided to foreigners.
The deduction equals 80% of the earnings, and certain conditions must be met.
The amendment in Article 10 of this Bill and Article 89 of the Income Tax Law named “Other Discounts” introduces a transfer requirement and raises the discount rate to 80% from 50%
- To get a discount on the earnings from these services, send the total amount to Turkey by the deadline for submitting the tax return for the calendar year.
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2-Exemption of 50% of foreign-earned dividends from income tax is governed by the Article
Under the provisions outlined in Article 8 of this Bill and Article 22 of the Income Tax Law, namely “Securities Capital Revenues,” individuals must own a minimum of 50% of the paid-up capital for joint-stock and limited liability companies whose legal and business headquarters are located outside of Turkey.
Additionally, 50% of the dividends earned are exempt from income tax, provided such dividends are repatriated to Turkey before the annual income tax return deadline relevant to the year of their accrual.
