Who is considered a resident in Turkey?

Residency is an important legal definition indicating that a person or entity resides or carries out its activities in Turkey. From taxation to banking, from real estate to trade, being a resident or not being considered a resident directly affects obligations and rights.

In this article, MFY LEGAL explains in detail who is considered to be a resident in Turkey, together with the legal bases.

1. Residence for Natural Persons

📌 In terms of Civil Law:

Article 19 of the Turkish Civil Code According to the law, a person’s domicile is the place where he or she resides with the intention to stay permanently. A person cannot have more than one place of residence.

📌 In terms of Tax Law:

According to Article 4 of the Income Tax Law (Income Tax Law), there are two main criteria for being deemed resident in Turkey:

• Residence is in Turkey
• Being in Turkey for more than six monthsin a calendar year (total duration is taken as basis, not uninterrupted)

💡 Exception:

Foreigners who come for reasons such as students, patients, tourists, temporary assignments are not considered residents even if they exceed this period (Art. 5 of the Income Tax Law).

2. Domicile in Legal Entities

📌 In terms of Corporate Tax:

According to Article 3 of the Corporate Tax Law (KVK), a legal entity is considered a full taxpayer (resident) if

• If the legal center is in Turkey
• If the business center is in Turkey

📎 Definitions:

• Legal headquarters The official address shown in the articles of association
• Business center The place where the business is actually managed

⚠️ Example:

• A.Ş. based in Istanbul is considered a full taxpayer.
• The Istanbul branch of a Germany-based company pays tax only on its Turkish earnings (limited taxpayer).

3. Public Institutions and Economic Organizations

Public institutions are considered non-taxable, but their economic enterprises are subject to corporate tax.

For example:

• Municipal electricity company
• State-owned production factories

According to Article 1 and Article 2 of the KVK, such enterprises are also considered as resident institutions.

4. Residency Status of Foreign Nationals

📌 They are Not Considered Resident:

• Foreigners arriving with a tourist visa
• Short-term students or those coming for treatment

📌 Situations that can be considered resident:

• Residence permit holders
• Permanent employees
• Persons arriving with family reunification

Duration of residence and intention are decisive in this assessment.

5. Domicile for Companies and Financial Institutions

In banking and finance legislation, the residency criterion is generally based on domicile or center of activity.

According to the Central Bank Circular on Capital Movements:

A “resident in Turkey” is a natural or legal person who has his/her domicile or place of business in Turkey.

CMB regulations also address this definition in parallel.

Definition of “resident in Turkey” in the Capital Movements Circular, Article 2 of Decree No. 32 on the Protection of the Value of the Turkish Currency is made by reference. According to this decision, persons resident in Turkey are:

• Real Persons: Has a residence in Turkey or persons who reside continuously in Turkey for more than six months in a calendar year.
• Legal Entities Kanuni has its registered office or place of business in Turkey companies, associations, foundations and other organizations.

Definition, Income Tax Law and is in line with the criteria of residency in theCorporate Tax Law.

Why is Residency Determination Important?

• Type of tax liability (full/narrow)
• Restrictions on banking and financial transactions
• Real estate acquisition rights
• Commercial representation and authorization issues
• It is important in terms of the prohibition to conclude lease agreements in foreign currency.

Misrepresentation can have serious legal and financial consequences.

⚖️ Get Legal Support from MFY LEGAL

Getting your residency status right is crucial to avoid making mistakes in your business and personal transactions.

As MFY LEGAL, we provide professional advice to natural and legal persons in the following areas related to residency

• Tax status determination
• Real estate law
• Residence applications for foreigners
• Company establishment and headquarters determination
• Commercial branch and representative office operations
• Finance and bank notifications

📝 Conclusion

Being “deemed resident” in Turkey is not just a matter of address; it is a determining concept in tax, real estate, trade, investment and even citizenship processes.

If the correct assessment is not made according to the legal basis, there may be tax penalties, real estate restrictions or banking problems.

✅ MFY LEGAL develops the right strategy for you with its expert staff.

📞 Contact us now :

📧 [email protected]

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