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I'm considering moving to °Õü°ù°ì¾±²â±ð this summer, but I'm trying to understand the Turkish taxation system, particularly in relation to overseas income.

I've done some reading and found the helpful.

We'll be applying for residency via the property investment route.

I run my UK-based consultancy company (working with UK clients), and this will continue to be our primary source of income, most probably in the form of dividend payments.

I'm a bit confused about the rate of tax that would be applicable to these dividend payments if we are resident in °Õü°ù°ì¾±²â±ð.

A from a PWC article states the following:

"Except for the specific cases stated below, half the gross amount of dividends obtained from resident entities is exempt from income tax. If the remaining amount, together with other income (i.e. salaries, income from movable property, and real estate income subject to WHT), exceeds the threshold of TRY 230,000 (for 2024), this amount should be declared with the annual tax return. WHT charged on the total gross dividend can be credited against the income tax calculated.

Dividend income obtained from abroad that exceeds TRY 13,000 (for 2024) is declared. In determination of whether or not this declaration threshold is exceeded, income from movable assets (such as interest and dividends) and immovable property (such as rent income) shall be taken into account, while any income that has already been taxed at source in Turkey and any exempt income will not be taken into consideration. The aforementioned half dividend exemption is not applied. WHT paid abroad is offset against the income tax calculated. The provisions of bilateral tax treaties are reserved.

I may be misreading the article, but it seems like I'd declare dividend income on an annual tax return and would pay tax at the applicable to "non-employment income", i.e.:

(TRY) 0 - 110,00 = 15%

110,000 - 230,000 = 20%

230,000 - 580,000 = 27%

580,000 - 3,000,000 = 35%

3,000,000+ = 40%

If this is correct, it would be significantly more expensive than UK rates.

However, I also discovered which states that:

"Dividends tax is 10% which is charged only on half of the dividends total. If the income from dividends and income from other sources of an individual exceeds TRY70,000, or about $4,000, they are included in the annual tax return. In some cases, tax on dividends may be credited against calulcated income tax.

From what is stated in the PWC article, the "half dividend exemption" is not applicable to dividend income from abroad.

However, would the tax rate of 10%  be applied to dividend income from abroad rather than the personal income tax rates quoted earlier?

If we make the move, I will be procuring the services of a qualified Turkish accountant, but at this stage, I'm just trying to figure out if the tax rates make the move unfeasible.

Many thanks.