Income Tax for Freelancers in Turkey 2025

Freelancers in Turkey face unique tax obligations that can seem complicated, but understanding them is crucial to ensuring compliance and maximizing your earnings. Whether you’re a designer, programmer, consultant, or any other kind of freelancer, it's essential to know how taxes work in Turkey and how to manage them efficiently. Here’s everything you need to know about paying taxes as a freelancer in Turkey.

Do I Need to Set Up a Company?

In Turkey, if you earn money more than once a year through the sale of goods or services, you must open a company. These earnings are considered commercial income under the Turkish Tax Code. Therefore, to avoid tax risks and penalties, establishing a company is a necessary step.

Types of Companies You Can Set Up:

Individual Company
Limited Liability Company (LLC)
C-Corp Company

Choosing the right business structure for your freelance operation depends on several factors, such as startup costs, tax rates, and legal responsibilities. For freelancers, setting up an Individual Company is typically the easiest and most cost-effective option.

Tax Rates for Freelancers:

Income Tax:

As a freelancer, your tax rate will depend on your income and whether you set up a company. If you opt for an Individual Company, income tax rates are as follows:

Up to 70,000 TRY: 15%
70,000 TRY - 1,900,000 TRY: Progressive rates up to 35%
Over 1,900,000 TRY: 40%

For LLC and C-Corp businesses, the corporate income tax rate is set at 25%.

Tax Tip 1: If you provide services outside Turkey, you can benefit from an income tax rate of 20%. This is a significant tax advantage for freelancers working with international clients.

Value-Added Tax (VAT):

In Turkey, freelancers are subject to VAT if they perform commercial, industrial, agricultural, or independent professional activities. However, you are exempt from VAT if you provide services outside of Turkey or sell goods internationally.

Tax Tip 2: If you render services abroad, you do not have to pay VAT.

Young Entrepreneur Tax Advantage:

For freelancers under the age of 29, there’s an additional benefit. If you start an individual company, you can enjoy a tax exemption on gains up to 150,000 TRY for the first three years.

Freelancers in Turkey are also required to pay Social Security premiums. The minimum premium for 2023 is 2,952.36 TRY per month. However, if you are under 29 and open an individual company, you are exempt from paying Social Security premiums for the first 12 months.

How Are Taxes Paid?

Taxes for freelancers in Turkey are generally paid in monthly, quarterly, or yearly installments, depending on the tax type. Here's the breakdown:

Monthly: VAT
Quarterly: Advance income tax
Yearly: Income tax

These taxes can be easily paid via the Interactive Tax Office online portal or through internet banking at government banks such as Ziraat, Halkbank, or Vakıfbank. A credit card is sufficient to pay taxes, and there's no need to open an account at these banks.

Which Tax Form Should You Use?

It’s essential to work with a CPA to ensure that your tax filings are correct and timely. Your CPA can help you calculate your overall tax liability and provide advice on the most tax-efficient way to handle your freelance business.

Conclusion:

Starting as a freelancer in Turkey can be overwhelming, especially when it comes to taxes. However, once you understand the tax structures and the available exemptions, the process becomes much more manageable. The key is to ensure you register your business correctly, understand the tax brackets, and take advantage of benefits like VAT exemptions and social security advantages for young entrepreneurs.

Don't forget: always consult a tax professional before making any major decisions. With the right advice, freelancing in Turkey can be an incredibly rewarding and tax-efficient career choice.

For more information on tax planning and advice for freelancers in Turkey, contact us

info@ozmconsultancy.com

Income Tax for Freelancers in Turkey 2025