# Turkey dividend withholding tax: rate and tax treaties

URL: https://fincodelabs.com/en/blog/turkey-dividend-withholding-tax · Publisher: Fincode (Fincode Yazılım ve Teknoloji A.Ş.), Istanbul, Turkey · Category: Investing in Turkey · Published: 2026-10-25 · Updated: 2026-11-05

Turkey dividend withholding tax explained: the 15% rate since December 2024, treaty rates and residence certificates for foreigners, exemptions and share gains.

**Short answer:** **Turkey's dividend withholding tax** (*temettü stopajı*) is 15% of the gross cash dividend, deducted by the paying company since 22 December 2024 under Presidential Decree 9286, for resident and non-resident individuals and for non-resident companies. Non-residents can claim a lower treaty rate with a residence certificate, but the UK, German and US treaties cap portfolio dividends at 15% or 20%, so for portfolio investors from those countries the domestic 15% applies. As of October 2026, gains on Borsa Istanbul shares carry 0% withholding for individuals.

Every cash dividend paid by a Turkish company passes through a withholding step, whether the shareholder lives in Istanbul or abroad. What differs between investors is whether the 15% is the final tax, whether a treaty can reduce it and whether a Turkish tax return is needed.

This guide covers the rate and its legal basis, a gross-to-net example, treaty rates for three example countries, the residence certificate, special cases, the declaration rule for residents and the treatment of share gains. It relies on the Resmî Gazete, guides from the Revenue Administration (GİB), Borsa Istanbul and treaty texts as of October 2026, names no dividend stocks and is not tax advice.

## What is the dividend withholding tax rate in Turkey?

The rate is 15% of the gross cash dividend for most shareholders, deducted by the company before it pays.

Presidential Decree 9286, published in the Resmî Gazete on 22 December 2024 (issue 32760) and effective that day, raised the rates under Article 94 of the Income Tax Law and Articles 15 and 30 of the Corporate Tax Law from 10% to 15%. The company withholds the tax as the payer and remits it; for listed shares, your broker credits the net amount on the payment date.

**Withholding on cash dividends from Turkish companies (October 2026)**

| Recipient | Rate | Is it the final tax? |
| --- | --- | --- |
| Resident individual | 15% | Final unless a return is required; then fully credited |
| Non-resident individual | 15% or a lower treaty rate | Yes |
| Non-resident company | 15% or a lower treaty rate | Yes |
| Tax-exempt recipient | 15% | Yes |
| Resident company | No withholding | Participation exemption under Corporate Tax Law Article 5/1-a |

Listed companies announce dividend decisions, gross and net amounts per share and payment dates on the Public Disclosure Platform (KAP); disclosures can also be tracked automatically, as in this [KAP disclosure alert bot](https://fincodelabs.com/en/projects/kap-disclosure-alert-bot).

## How gross and net dividends are calculated

The net dividend is 85% of the gross amount: net = gross × (1 − 0.15), and gross = net ÷ 0.85.

> **Hypothetical example:** a company pays a gross dividend of TRY 4.00 per share and you hold 2,000 shares. The gross dividend is TRY 8,000.00, the withholding is 8,000 × 15% = TRY 1,200.00 and TRY 6,800.00 is credited to your account. A shareholder in London and one in Istanbul receive the same net amount; what differs is what happens afterwards, in a Turkish return for the resident and under home-country rules for the non-resident. All figures are hypothetical.

The gross figure matters because the resident declaration threshold and many foreign tax credits work from the gross amount. KAP notices state both figures per share, and the entitlement date follows the T+2 settlement cycle; trading days and half days are listed in [Borsa Istanbul trading hours and holidays](https://fincodelabs.com/en/blog/borsa-istanbul-trading-hours-holidays).

## Turkey dividend tax for foreigners: treaty rates

A double tax treaty reduces the Turkish 15% only if it sets a lower cap for your situation, which none of the three example treaties below does for portfolio investors.

**Treaty caps on Turkish dividend tax, examples (treaty texts as published by each partner government)**

| Treaty | Cap for a substantial corporate holding | Cap in other cases | Rate for a portfolio investor |
| --- | --- | ---: | --- |
| United Kingdom, in force 26 October 1988 | 15% for a company controlling at least 25% of the voting power | 20% | 15% domestic rate |
| Germany, signed 19 September 2011 | 5% for a company, not a partnership, holding directly at least 25% of the capital | 15% | 15% |
| United States | 15% for a company owning at least 10% of the voting stock | 20% | 15% domestic rate |

A treaty only limits the tax the source country may charge, so where the cap is above 15% Turkey's lower domestic rate applies. A real gain from a treaty is mostly for companies with qualifying stakes, such as a German parent company holding directly at least 25% of a Turkish subsidiary. The US treaty also has special rules for dividends from Turkish securities investment and real estate investment companies and funds. Your home country may tax the dividend again and may allow a credit for the Turkish tax, so check its rules.

## How to claim a treaty rate: residence certificate and tax number

To use a treaty, a non-resident needs a Turkish tax number and a residence certificate issued by the home tax authority.

GİB's February 2026 guide on provisional Article 67 sets out the procedure for non-resident individuals investing in Turkish financial instruments, directly or through foreign portfolio managers:

- **Tax number:** required to invest and to benefit from treaties; individuals submit a notarized copy of their passport, or the original and a copy for the tax office to certify, and banks, intermediaries and custodians can request numbers in bulk for foreign clients who do not have one, through the Boğaziçi Tax Office in Istanbul.
- **Residence certificate:** the original certificate from the competent authority of the home country, with a Turkish translation certified by a notary or a Turkish consulate in that country.
- **Submission:** through the bank or intermediary, or directly to the Boğaziçi Tax Office.

The guide describes this procedure for investments covered by provisional Article 67, and dividends fall outside that article, so ask the paying intermediary which documents it accepts for a treaty rate on dividends and by when, because the company withholds at the time of payment. The tax number process is explained in [how foreigners get a Turkish tax number](https://fincodelabs.com/en/blog/turkish-tax-number-for-foreigners).

## Exempt and special cases

Bonus shares, certain investment companies and corporate shareholders are treated differently from ordinary cash dividends.

- **Bonus shares:** under Article 94 of the Income Tax Law, adding profits to share capital does not count as a dividend distribution, so bonus shares carry no withholding.
- **Investment companies:** Borsa Istanbul's taxation page for foreign investors lists 0% on dividends of securities investment companies, real estate investment trusts and venture capital investment companies and funds. Special regimes change, so check the rate shown in the company's KAP dividend notice.
- **Resident companies:** dividends between Turkish resident companies are not subject to withholding and are covered by the participation exemption.
- **Fund distributions and fund gains:** these follow fund rules, not the 15% dividend rate; see [Turkish mutual funds and TEFAS](https://fincodelabs.com/en/blog/turkish-mutual-funds-tefas).

## Do residents declare Turkish dividends?

A resident individual declares half of the gross dividend only when that half, with other declarable income, exceeds TRY 400,000 for 2026 income.

According to GİB's 2026 guide for investment income, half of dividends from Turkish resident companies is exempt, and the declaration threshold is TRY 330,000 for 2025 income and TRY 400,000 for 2026 income. When a return is filed, the whole 15% withheld, including the part on the exempt half, is credited against the tax due, and any excess is refunded under general rules. Returns for 2026 income are filed in March 2027.

> **Hypothetical example:** a resident with no other declarable income receives TRY 1,000,000 of gross dividends in 2026, so TRY 150,000 is withheld. The taxable half, TRY 500,000, exceeds TRY 400,000 and must be declared. Under GİB's 2026 tariff for non-wage income, tax is TRY 70,500 on the first TRY 400,000 plus 27% of TRY 100,000, or TRY 97,500 in total. The TRY 150,000 credit exceeds that, so nothing is payable and TRY 52,500 can be claimed back if the refund conditions are met. All figures are hypothetical.

Other income changes the result; brackets are in [Turkey's income tax brackets](https://fincodelabs.com/en/blog/turkey-income-tax-brackets).

## Turkey capital gains tax on stocks

Gains on shares listed on Borsa Istanbul carry 0% withholding for resident and non-resident individuals, and no Turkish return is needed for them.

GİB's February 2026 guide states that the withholding rate on share gains is 0% for all resident and non-resident individuals under Decree 2008/14272, that no annual or one-off return is filed, and that Borsa Istanbul shares of Turkish resident companies held for more than a year are outside withholding altogether. Shares of securities investment companies are excluded from the 0% rule, and the provisional article behind these rates now runs until 31 December 2030. Borsa Istanbul's taxation page also lists 0% for foreign investors on share gains and on futures and options on shares and share indices. Your home country may tax the gain under its own rules; the account side is covered in [how to buy Turkish stocks](https://fincodelabs.com/en/blog/how-to-buy-turkish-stocks).

## Frequently asked questions

### What is the dividend withholding tax rate in Turkey in 2026?

It is 15% of the gross cash dividend, the rate in force since 22 December 2024 under Presidential Decree 9286. The rate can be changed by a new presidential decree.

### Is the 15% the final tax for foreign investors?

For non-residents it is final in Turkey and no Turkish return is needed. Your home country may still tax the dividend and may credit the Turkish tax.

### Can a tax treaty reduce Turkish dividend tax?

Only where the treaty cap is below 15%, for example 5% under the Germany treaty for a company holding directly at least 25% of the capital. A residence certificate and a Turkish tax number are needed.

### Are bonus shares taxed in Turkey?

No withholding applies, because adding profits to capital is not treated as a dividend distribution.

### Was the Turkish dividend tax rate 10% before?

Yes. Decree 9286 raised the rate from 10% to 15% with effect from 22 December 2024.

## Sources

- [Resmî Gazete: Presidential Decree 9286 raising dividend withholding to 15%, 22.12.2024 (Turkish)](https://www.resmigazete.gov.tr/eskiler/2024/12/20241222-15.pdf)
- [GİB: Tax guide for investment income, 2026 (Turkish)](https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Ffileadmin%2Fbeyannamerehberi%2F2026%2F2026_menkulsermayeiradi.pdf)
- [GİB: Guide to provisional Article 67 for individual investors, February 2026 (Turkish)](https://cdn.gib.gov.tr/api/gibportal-file/file/getFile?objectKey=DUYURU%2FUNIVERSAL%2F2026%2F2026_Gecici67.pdf)
- [GİB: Withholding rates under provisional Article 67 for resident and non-resident individuals (Turkish)](https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2FGVK_Gecici_67_Madde_Kapsaminda_Kesinti_Oranlari.pdf)
- [GİB: Income tax tariff 2026 (Turkish)](https://cdn.gib.gov.tr/api/gibportal-file/file/getFileResources?objectKey=arsiv%2Fyardim-kaynaklar%2Fyararli-bilgiler%2Fgelir-vergisi-tarifeleri%2Fgelir-vergisi-tarifesi-2026.pdf)
- [Borsa Istanbul: Investment guide, taxation for foreign investors](https://borsaistanbul.com/en/investment-guide/taxation)
- [GOV.UK: 1988 UK–Turkey Double Taxation Agreement, Article 10](https://www.gov.uk/government/publications/turkey-tax-treaties/1988-uk-turkey-double-taxation-agreement-in-force)
- [German Bundestag: Printed paper 17/8841 with the Germany–Turkey double taxation agreement of 19.09.2011](https://dserver.bundestag.de/btd/17/088/1708841.pdf)
- [IRS: United States–Turkey income tax treaty, Article 10](https://www.irs.gov/pub/irs-trty/turkey.pdf)
- [Income Tax Law No. 193, Article 94 (withholding on dividends; profits added to capital) (Turkish)](https://www.mevzuat.gov.tr/mevzuatmetin/1.4.193.pdf)
- [KAP: Public Disclosure Platform](https://www.kap.org.tr/en)

> This guide is general information, not investment, legal or tax advice. Amounts, rates and rules in Turkey change often: check the date given for each figure and the official source before you rely on it, and ask a licensed adviser about your own situation. Sources, checks and corrections: see the [editorial policy](https://fincodelabs.com/en/editorial-policy).

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Published by Fincode (Fincode Yazılım ve Teknoloji A.Ş.), a software company in Istanbul, Turkey: https://fincodelabs.com/en/blog/turkey-dividend-withholding-tax

Cite as: Fincode, "Turkey dividend withholding tax: rate and tax treaties", updated November 5, 2026, https://fincodelabs.com/en/blog/turkey-dividend-withholding-tax