Tax Comparison
Turkey vs Ukraine
Hundreds of thousands of Ukrainian nationals are in Turkey since 2022. Understanding whether 183+ days creates Turkish tax residency — and how that interacts with Ukrainian fiscal obligations — is critical for long-term stays.
Overview
Ukraine levies personal income tax (PIT) at a flat rate of 18 % on most income types for residents, plus a 1.5 % military levy (verify current rates at tax.gov.ua — wartime fiscal measures have created changes). Ukrainian employers withhold PIT at source for employees. Ukrainian residents are taxed on worldwide income; non-residents pay 18 % on Ukrainian-source income.
Turkey's progressive income tax reaches 40 % at its top band. For most Ukrainians earning in UAH or EUR, Turkey's effective rate at lower income levels (15 %–20 % on the lower TRY bands) may be comparable to Ukraine's flat rate. The critical issue for Ukrainians in Turkey is whether prolonged stay (183+ days) creates Turkish tax residency — triggering worldwide income tax obligations in Turkey, potentially in addition to ongoing Ukrainian obligations.
Turkey and Ukraine do not have a double-tax treaty in force as of our last check — verify at gib.gov.tr before relying on any treaty protections. The absence of a DTT means there is no formal framework to prevent double taxation if both countries claim you as a tax resident. This is a material risk for Ukrainians in Turkey for extended periods.
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
- 183-day residency trigger
- 183+ days in Turkey in a calendar year generally creates Turkish tax residency
- Foreign income exemption (proposed)
- Art. 23/14 — verify current legislative status at gib.gov.tr
Ukraine
- Personal income tax (PIT)
- 18 % flat rate on most income types (verify at tax.gov.ua — wartime measures apply)
- Military levy
- 1.5 % (verify current rate — subject to wartime changes)
- Social contributions (employer)
- 22 % of gross salary (unified social contribution — verify)
- Standard VAT
- 20 %
- Dividend tax
- 5 % or 9 % depending on source (verify current rules)
Key differences
| Topic | Turkey | Ukraine |
|---|---|---|
| Income tax structure | Progressive 15 %–40 % | Flat 18 % + 1.5 % military levy (verify current rates) |
| Non-resident treatment | Non-residents taxed only on Turkish-source income (~20 % withholding on most types) | Non-residents taxed at 18 % on Ukrainian-source income |
| Dual residency risk | 183+ days triggers Turkish residency | Ukraine may retain residency claim based on domicile / family ties |
| Double-tax treaty | No DTT with Ukraine as of last review — verify at gib.gov.tr | No DTT with Turkey as of last review — verify at tax.gov.ua |
Double-tax treaty
Turkey and Ukraine do not appear to have a double-tax treaty in force — verify before relying on treaty protections.
Turkey and Ukraine do not appear to have a double-tax treaty in force as of our last review. This means there is no formal framework to prevent double taxation if both countries consider you a tax resident, and no reduced withholding rates on cross-border income flows. Verify the current treaty status at gib.gov.tr and tax.gov.ua — treaties can be signed or ratified after publication of this page.
Source: https://www.gib.gov.tr
Who should consider this comparison?
- Ukrainian nationals who have been in Turkey for 183+ days and need to understand whether they are Turkish tax residents.
- Ukrainian professionals working remotely for Ukrainian or international employers who need to assess their tax exposure in both countries.
- Ukrainians who have moved long-term to Turkey and want to understand their Turkish annual tax return obligations.
- Ukrainian business owners with Turkish entities who need to understand cross-border dividend and profit repatriation taxation.
- Ukrainians considering Turkish citizenship by investment who need to understand the ongoing tax implications of formal Turkish residency.
FAQ
Frequently asked questions
- Am I a Turkish tax resident if I have lived in Turkey for more than 183 days?
- Generally yes. Turkish tax law considers an individual a Turkish tax resident if they spend 183 or more days in Turkey during a single calendar year, or if they maintain a continuous domicile in Turkey. Turkish tax residency triggers a worldwide income tax obligation on all income — including Ukrainian-source income. Many Ukrainians who relocated to Turkey after 2022 have met or exceeded this threshold.
- Is there a double-tax treaty between Turkey and Ukraine to protect me from being taxed in both countries?
- As of our last review, Turkey and Ukraine do not have a double-tax treaty in force. This is a material difference compared to Turkey's treaty network with EU and G7 countries — there is no formal bilateral mechanism to prevent double taxation or allocate taxing rights. If both Turkey and Ukraine claim you as a tax resident, you may face obligations in both countries on overlapping income. Verify the current status at gib.gov.tr and consult advisors in both countries.
- Do I need to file a Ukrainian tax return if I live in Turkey?
- Ukrainian tax residency rules and the current wartime fiscal measures create a complex situation. Traditionally, Ukrainian residents are required to file annual personal income tax returns on worldwide income. Non-residents only report Ukrainian-source income. If you have formally changed your residency status under Ukrainian law and are not receiving Ukrainian-source income, your Ukrainian obligations may be limited — but this depends on your specific situation. Consult a Ukrainian tax advisor for current wartime guidance.
- How does Turkey's proposed Art. 23/14 foreign income exemption help Ukrainians?
- If enacted, Art. 23/14 would exempt foreign-source income from Turkish income tax for qualifying new Turkish tax residents who have not been resident in Turkey for the preceding 10 years. For a Ukrainian expat who qualifies, Turkish income from Ukrainian sources could potentially be exempt from Turkish tax. However, with no DTT between Turkey and Ukraine, any Ukrainian-side tax obligations on the same income would not be offset by a treaty credit. The combined picture needs careful analysis.
- What Turkish taxes apply to a Ukrainian freelancer working remotely in Turkey?
- If you are a Turkish tax resident (183+ days in Turkey), Turkish income tax applies to your worldwide income — including foreign-source freelance earnings. You would file a Turkish annual income tax return and pay tax at the applicable progressive bands. You are also subject to Turkish social security obligations if providing services in Turkey. The absence of a Turkey-Ukraine DTT means you cannot offset Turkish taxes against Ukrainian obligations via treaty credit — you may need to seek relief under domestic unilateral credit rules in each country.
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