Tax Comparison
Turkey vs Russia
Russia and Turkey have a double-tax treaty, but geopolitical developments have affected practical cross-border financial flows. Understanding residency-triggered Turkish tax obligations is especially important for Russian expats who moved to Turkey post-2022.
Overview
Russia has a relatively flat income tax structure: 13 % on annual income up to 5 million RUB, rising to 15 % on amounts above that threshold (verify current rates at nalog.gov.ru — Russia periodically revises its personal income tax structure). Russian tax residents are taxed on worldwide income; non-residents pay a higher flat rate (typically 30 %) only on Russian-source income.
Turkey taxes residents on worldwide income using progressive bands from 15 % to 40 %. Many Russian expats who relocated to Turkey after 2022 may be Turkish tax residents if they have spent 183+ days per year in Turkey — triggering a worldwide income tax obligation in Turkey while potentially still being classified as Russian tax residents depending on their ties to Russia.
The Turkey-Russia double-tax treaty provides some framework for avoiding double taxation, but the practical application has become more complex given banking and payment restrictions following 2022 sanctions. Russian expats in Turkey should assess both their Turkish tax residency status and their Russian non-resident status carefully with qualified advisors in both jurisdictions.
Tax highlights at a glance
Turkey
- Income tax bands
- 15 % → 20 % → 27 % → 35 % → 40 % (progressive, 2025 TRY brackets)
- Standard VAT
- 20 %
- Social security (employee)
- ~14 % of gross salary
- Foreign income exemption (proposed)
- Art. 23/14 — verify current status at gib.gov.tr
- 183-day residency trigger
- Spending 183+ days in Turkey in a calendar year creates Turkish tax residency
Russia
- Income tax (residents)
- 13 % up to 5M RUB / 15 % above (verify at nalog.gov.ru — subject to change)
- Income tax (non-residents)
- Typically 30 % on Russian-source income
- Standard VAT
- 20 %
- Social contributions
- Varies — verify current rates at nalog.gov.ru
- Dividend tax (residents)
- 13 % / 15 % depending on amount — verify current rules
- Capital gains on Russian shares
- Generally taxed as income — verify current rules
Key differences
| Topic | Turkey | Russia |
|---|---|---|
| Top marginal income tax rate | 40 % (above ~1.9M TRY) | 15 % (above 5M RUB for residents) — verify current rates |
| Non-resident rate on local-source income | ~20 % withholding on Turkish-source income for non-residents (varies by type) | 30 % on Russian-source income for non-residents |
| Dual-residency risk | 183+ days in Turkey triggers Turkish tax residency | Russia may still claim residency based on domicile / ties — assess carefully |
| Foreign income for new residents | Proposed Art. 23/14 exemption for qualifying new residents | Russia taxes residents on worldwide income; non-residents only on Russian-source |
| Double-tax treaty | Yes — Turkey-Russia DTT in force | Yes — Russia-Turkey DTT in force |
Double-tax treaty
Turkey and Russia have a double-tax treaty in force.
Turkey and Russia have a double-tax treaty in force. The treaty provides frameworks to determine residency, allocate taxing rights, and prevent double taxation on income and capital. However, practical application has been affected by international sanctions and banking restrictions — cross-border transfers between the two countries face limitations. Russian expats in Turkey should verify both the treaty position and the current practical enforcement environment with advisors in both countries.
Source: https://www.gib.gov.tr
Who should consider this comparison?
- Russian nationals who relocated to Turkey after 2022 and are uncertain whether they are Turkish tax residents.
- Russians with Turkish property or business income who need to understand their Turkish tax filing obligations.
- Russian freelancers or remote workers who are now Turkish tax residents and need to understand how their Russian-source income is treated.
- Russians exploring the Turkish citizenship-by-investment route who want to understand the ongoing tax implications of Turkish residency.
- Russian expats who have lost Russian bank access and need to understand how Turkish financial accounts affect their Russian tax status.
FAQ
Frequently asked questions
- Am I a Turkish tax resident if I have lived in Turkey for more than 183 days?
- Generally yes. Turkish income tax law treats an individual as a Turkish tax resident if they spend 183 or more days in Turkey during a single calendar year, or if they have a continuous residence (domicile) in Turkey. Turkish tax residency triggers a worldwide income tax obligation in Turkey on all income — including Russian-source income — subject to DTT exemptions and credits. Many Russian expats who moved to Turkey after 2022 have crossed this threshold.
- Do I still have to pay Russian taxes if I am living in Turkey?
- Russia taxes its residents on worldwide income. If Russia considers you non-resident — because you have spent fewer than 183 days in Russia in the calendar year — you are only taxed in Russia on Russian-source income at the non-resident rate (typically 30 %). However, Russia's determination of residency may consider other factors beyond day count. You may face dual-residency status if both countries claim you as a resident. The Turkey-Russia DTT contains tiebreaker rules — consult a qualified tax advisor in both jurisdictions.
- Can I open a Turkish bank account and transfer money from Russia?
- This is a practical question that sits outside pure tax advice. Turkish banks are subject to SWIFT infrastructure and international compliance rules; some Turkish banks have restricted or ceased processing certain Russian transactions. The situation has evolved since 2022 and varies by bank and transaction type. For tax purposes, transfers between jurisdictions do not themselves create tax liability — but they may need to be reported and must be reconciled with your income and tax positions in both countries.
- Is the Russian 13 %/15 % income tax lower than Turkey's rates?
- For most income levels, yes — Russia's personal income tax rate (13 % up to 5M RUB, 15 % above) is lower than Turkey's top band of 40 %. However, if you are a Turkish tax resident with foreign income that is not covered by the Art. 23/14 exemption (or if that exemption is not enacted), you would owe Turkish income tax at the relevant band — not Russian rates. The comparison is only relevant if you genuinely cease Russian tax residency and establish Turkish residency.
- What does the Turkey-Russia double-tax treaty cover?
- The DTT between Turkey and Russia covers income tax and provides rules for determining tax residency, allocating taxing rights between the two countries on specific income categories (employment, business profits, dividends, interest, royalties, pensions), and providing credit or exemption mechanisms to eliminate double taxation. Verify the specific articles and current treaty text at gib.gov.tr. Given the changed geopolitical environment, also seek current advice on how Turkish and Russian authorities are interpreting and applying the treaty in practice.