Tax Comparison
Turkey vs France
France has some of Europe's highest combined income tax and social charges. Turkey's progressive system tops at 40 %, and the proposed Art. 23/14 exemption could be particularly valuable for French freelancers and entrepreneurs with foreign income.
Overview
France levies income tax (impôt sur le revenu) at progressive rates from 11 % to 45 %, plus mandatory social charges (cotisations sociales / CSG-CRDS) that add a further 9.7 %+ on most income types — meaning the effective marginal rate for self-employed individuals can approach 55 % or more at top income levels. France also levies a Real Estate Wealth Tax (IFI — Impôt sur la Fortune Immobilière) on worldwide real estate net worth above €1.3 million for French residents.
Turkey's income tax reaches 40 % at its top band, with no wealth tax on real estate or personal assets. Turkish social security contributions are lower than French cotisations at most income levels. For French nationals with significant real estate holdings worldwide, the absence of an IFI equivalent in Turkey is a meaningful structural difference.
The Turkey-France double-tax treaty is in force. France has strict exit rules — individuals who have been French residents for 6 of the last 10 years and hold financial assets above certain thresholds may be subject to exit charges (impôt de sortie) when leaving France. French expats must assess these obligations before establishing Turkish residency.
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
- Real estate wealth tax
- None
- Foreign income exemption (proposed)
- Art. 23/14 — verify at gib.gov.tr
- Capital gains on real estate
- Exempt after 5 years of ownership; taxed as income if sold within 5 years
France
- Income tax bands
- 0 %, 11 %, 30 %, 41 %, 45 % (verify at impots.gouv.fr — brackets adjusted annually)
- Social charges (CSG-CRDS)
- ~9.7 % on most income types for residents
- Standard VAT
- 20 %
- Real estate wealth tax (IFI)
- 0.5 %–1.5 % on worldwide real estate net worth above €1.3M for French residents
- Inheritance tax
- Progressive — up to 45 % on direct lineage; up to 60 % for non-relatives
- Exit tax (impôt de sortie)
- Applies to qualifying individuals on unrealised gains on financial assets when leaving France
Key differences
| Topic | Turkey | France |
|---|---|---|
| Top effective marginal rate | 40 % income tax + ~14 % social security (self-employed varies) | 45 % income tax + ~9.7 %+ social charges = ~55 %+ effective for self-employed |
| Real estate wealth tax | None | IFI: 0.5 %–1.5 % on worldwide real estate net worth above €1.3M |
| VAT standard rate | 20 % | 20 % |
| Exit charges when leaving | No exit tax equivalent | Impôt de sortie on unrealised gains for qualifying individuals |
| Inheritance tax | 1 %–30 % depending on relationship | Up to 45 % (direct lineage) to 60 % (non-relatives) — among Europe's highest |
| Double-tax treaty | Yes — Turkey-France DTT in force | Yes — France-Turkey DTT in force |
Double-tax treaty
Turkey and France have a double-tax treaty in force.
Turkey and France have a double-tax treaty in force. The treaty covers income and capital taxes, with provisions on residency determination, dividends, interest, royalties, and employment income. France's impôt de sortie exit charge may apply when you cease French residency — this is a pre-departure obligation separate from the treaty. Verify both the DTT provisions and exit-tax implications at gib.gov.tr and impots.gouv.fr.
Source: https://www.gib.gov.tr
Who should consider this comparison?
- French self-employed professionals and entrepreneurs facing 50 %+ effective marginal rates who can genuinely establish Turkish tax residency.
- French nationals with worldwide real estate net worth above €1.3M who are subject to IFI and want to understand Turkey's zero-wealth-tax position.
- French retirees receiving pension income who want to understand the treaty treatment and compare retirement costs.
- French nationals who own or are considering Turkish real estate and need to understand both Turkish and French tax obligations.
- French digital nomads who can demonstrate genuine Turkish residency and want to benefit from lower effective rates on foreign-source income.
FAQ
Frequently asked questions
- Does Turkey have an equivalent to France's IFI (real estate wealth tax)?
- No. Turkey does not levy an annual wealth tax on real estate or personal net worth. This is one of the most impactful structural differences for French residents with substantial real estate holdings. French residents pay IFI at 0.5 %–1.5 % annually on worldwide real estate net worth above €1.3 million. Moving to Turkey and genuinely ceasing French residency would remove French IFI liability on non-French real estate — though French-sited property would typically remain within IFI scope as a non-resident.
- What is the French exit tax (impôt de sortie) and how does it affect moving to Turkey?
- France's exit tax (impôt de sortie, also called 'taxe de sortie') applies to individuals who have been French residents for at least 6 of the 10 years preceding their departure and hold financial assets above certain thresholds. It is assessed on unrealised gains in securities and certain other financial assets at the time of departure. Payment may be deferred if you move to an EU/EEA country but not if you move to Turkey (a non-EU country). A French tax advisor specialising in expatriation should assess your exposure before you finalise a move date.
- How do French social charges (CSG-CRDS) compare to Turkish social security?
- French social charges (CSG-CRDS and other cotisations) add approximately 9.7 % to effective rates on most income types — on top of the progressive income tax. For self-employed individuals, total social contributions can be significantly higher. Turkish employee social security contributions are approximately 14 % of gross salary, but the self-employed contribution base and rates differ from the employee system — often resulting in lower absolute contributions at the same income level. Verify current Turkish rates at sgk.gov.tr.
- Are French pension payments covered by the Turkey-France DTT?
- The Turkey-France DTT contains pension provisions that generally assign taxing rights over pensions to either the source country or the residence country depending on the pension type (government vs. private). French government civil-service pensions are typically reserved for French taxation even for non-residents. Private and occupational pensions may be taxable in Turkey as the country of residence. A dual-qualified advisor familiar with both French and Turkish pension rules should confirm the treatment for your specific pension type.
- Is France's inheritance tax materially higher than Turkey's?
- Yes, significantly so at higher amounts and for non-direct-lineage beneficiaries. France levies inheritance tax (droits de succession) at rates up to 45 % for direct lineage (children/grandchildren) and up to 60 % for non-relatives. Turkey's Inheritance and Gift Tax reaches 30 % at the top of its scale. For large estates or non-family beneficiaries, the French rates are among Europe's highest. Turkish inheritance tax applies to Turkish-sited assets regardless of the owner's residency.