Turkey’s Double Tax Treaties List & Key Country Analysis (Germany, USA, UK)

Ara 13, 2025

As of 2025, Turkey has over 80 Double Taxation Avoidance Agreements (DTAA) in force. Many companies assume that all treaties are standard. This is a major misconception. While most treaties are based on the OECD model, the withholding tax rates, timeframes for the creation of a “permanent establishment,” and specific exemptions differ dramatically depending on the negotiated country.

İçindekiler Tablosu

In international tax planning, one cannot act on assumptions. A tax that is 0% in trade with the Netherlands might be 15% with Germany and 20% with the USA.

B2B Master Table: Analysis of Top 10 Trading Partners

The following table is a general summary of the reduced withholding tax rates in the treaties currently in force with the 10 countries with which Turkey has the most intense commercial and investment relationships.

⚠️ Critical Warning: These rates are for general information purposes and may vary depending on specific conditions (e.g., shareholding percentage exceeding 25%, holding period, etc.). The current full text of the relevant treaty should be examined before any final transaction.

Country (Partner Country)	Dividend WHT % *	Interest WHT %	Royalty WHT %
Germany	5% / 15%	10%	10%
United States (USA)	15% / 20%	10% / 15%	5% / 10%
Netherlands	0% / 5% / 10%	10% / 15%	10%
United Kingdom (UK)	15% / 20%	15%	10%
Italy	15%	15%	10%
France	15% / 20%	15%	10%
Russian Federation	10%	10%	10%
P.R. China	10%	10%	10%
Azerbaijan	10% / 12%	10%	10%
UAE	5% / 12.5%	10%	10%

* Note: Lower rates are usually conditional on a certain capital shareholding threshold (e.g., >25%).

Analytical Commentary: What Does the Table Tell Us?

Looking at the table; it is evident that the Netherlands (with 0% withholding under certain conditions) is a strategic base for holding structures and dividend transfers, whereas the withholding tax burden in trade with the USA can remain higher compared to other OECD countries. These differences directly affect the decision of which country to structure the investment through.

All Other Countries: Full List and Official Sources

Listing all 80+ countries here carries the risk of becoming outdated and is impractical. For the list of all treaties in force, their full texts (Turkish/English), and effective dates, you should refer to the most accurate source, the official page of the Revenue Administration.

👉 Official Source: Revenue Administration (GİB) – List of DTAAs in Force (This link will open in a new tab).

Frequently Asked Questions

Why are there two different rates in the table (e.g., 5% / 15%)?

Many treaties have a dual structure for dividend withholding tax. If your shareholding in the company is above a certain level (usually 25%), a lower rate (5%) applies; if below, a higher rate (15%) applies.

What does “Royalty” cover?

It covers payments made for the use of rights such as trademarks, patents, trade secrets, software licenses, and know-how. When these payments are made abroad, withholding tax is deducted at the reduced rate stipulated in the treaty.

Is the English or Turkish text of the treaty valid?

Treaties are usually signed in three languages: Turkish, the language of the counterpart country, and English. In case of a difference in interpretation, the last article of the relevant treaty specifies which text will prevail (usually the English text).

Professional Support

DTAA texts are complex documents where legal and financial language intertwine. Whether a rate in the table applies to your situation depends on the special provisions in the “Protocols” of the treaty. You can rely on Vergi Merkezi international tax expertise to avoid penalties due to incorrect rate application.