Like many other countries of the world, Turkey is also warming up to cryptocurrency as a preferred form of investment owing to sub-par economic performance of the country and very high inflation. Although, crypto ownership is on the rise, there is a lack of tax regulations which makes categorisation of these assets a gray area. Crypto tax in Turkey can be levied on crypto assets by treating them as securities, commodities or money. Treating crypto as money is almost impossible in the foreseeable future as it would mean accepting it as a form of currency.
Regulations regarding crypto are very much needed in Turkey as its domestic currency, Turkish Lira has proven to be more volatile than Bitcoin itself, pushing people to invest into Bitcoin in order to save their purchasing power.
Do you have to pay crypto tax in Turkey?
If crypto is being treated as a commodity or security, you have to pay tax on it in Turkey. If crypto is going to be accepted as a form of currency in Turkey, then it won’t be taxable and will fall under the jurisdiction of CBRT.
When do you have to pay tax on crypto in Turkey?
If treated as security, buying and selling of crypto will be taxed.
If treated as commodity, crypto will be subject to either income tax or value added tax.
What crypto transactions are taxable in Turkey?
- Buying of crypto
- Selling crypto
- Gains on crypto
What are the Crypto Tax Rates in Turkey?
WHEN TREATED AS SECURITY
| Taxable income (TRY*) | Tax on excess (%) |
| < 32,000 | 15 |
| 32,000 – 70,000 | 20 |
| 70,000 – 250,000 | 27 |
| 250,000 – 880,000 | 35 |
| 880,000 < | 40 |
* Turkish lira
WHEN TREATED AS COMMODITY
If the profit is considered as incidental gain, that is one time gain:
| Taxable income (TRY*) | Tax on excess (%) |
| < 32,000 | 15 |
| 32,000 – 70,000 | 20 |
| 70,000 – 250,000 | 27 |
| 250,000 – 880,000 | 35 |
| 880,000 < | 40 |
- If the profit is treated as continuous gain, then tax is levied as VAT at 18%.
Turkey Income Tax Brackets (2023)
| Taxable income (TRY*) | Tax on excess (%) |
| < 32,000 | 15 |
| 32,000 – 70,000 | 20 |
| 70,000 – 250,000 | 27 |
| 250,000 – 880,000 | 35 |
| 880,000 < | 40 |
Turkey Capital Gain Tax Rates (2023)
Capital Gain Tax Rates in Turkey are the same as income tax rates, that is, varying from 5% to 40%.
How is Tax Calculated on Cryptocurrency in Turkey?
- AS A SECURITY:
Both buying and selling of crypto will be taxed if treated as securities. Here income tax rates would be levied on an asset’s increased value if it exceeds TRY 19,000.
- AS A COMMODITY:
If crypto is sold once, then it is subject to income tax gains. If crypto is being held and sold continuously for a greater value, it is subject to VAT. These tax rates are levied on the gains made. An exemption of up to TRY 43,000 is given.
Is there any Crypto Tax Free in Turkey?
When treated as security, appreciation of up to TRY 19,000 is exempt from taxation.
When treated as a commodity, gains of up to TRY 43,000 are exempt from taxes.
Crypto Tax in Turkey – FAQs
Do you have to pay tax when you buy crypto in Turkey?
If being treated as security, then you have to pay taxes on buying crypto.
Do you have to pay tax when you sell crypto in Turkey?
Yes, you have to pay tax when you sell crypto regardless of how it is being treated.
Do you have to pay tax when transferring crypto in Turkey?
If being treated as security, transferring crypto should be taxed.
Do you have to pay tax when spending crypto in Turkey?
Yes, you have to pay tax when spending in crypto in Turkey.
Is swapping crypto taxable?
Yes, swapping crypto is also taxable in Chile.
How much tax on crypto gains in Turkey?
| Taxable income (TRY*) | Tax on excess (%) |
| < 32,000 | 15 |
| 32,000 – 70,000 | 20 |
| 70,000 – 250,000 | 27 |
| 250,000 – 880,000 | 35 |
| 880,000 < | 40 |
How do I avoid capital gains tax on crypto in Turkey?
By making sure value appreciation is less than TRY 19,000
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.