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Turkey

#9 overall · Score 76.0 / 100 · up two places from 2025

Overall

#9

76.0 / 100

up two places from 2025

Corporate

#21

63.0 / 100

unchanged from 2025

Individual

#6

86.6 / 100

down one place from 2025

Consumption

#15

60.3 / 100

down one place from 2025

Property

#22

57.3 / 100

unchanged from 2025

Cross-border

#8

81.9 / 100

up one place from 2025

Strengths

  • The personal income tax on dividends is 20 percent, below the OECD average (24.7 percent), and capital gains from domestically listed shares held for more than two years are tax-exempt.
  • Turkey provides an allowance for equity (ACE), addressing the debt bias inherent to the standard corporate income tax.
  • Turkey exempts foreign dividend income without any country limitations and has a tax treaty network of 94 countries.

Weaknesses

  • Companies are severely limited in the time period in which they can use net operating losses to offset future profits and are unable to use losses to reduce past taxable income.
  • Turkey's VAT rate of 20 percent applies to less than half of the potential tax base.
  • Turkey has multiple distortionary property taxes with separate levies on real estate transfers, estates, and financial transactions.

Component Scores

Turkey category scores out of 100Corporate Taxes: score 63.0, rank 21. Individual Taxes: score 86.6, rank 6. Consumption Taxes: score 60.3, rank 15. Property Taxes: score 57.3, rank 22. Cross-Border Tax Rules: score 81.9, rank 8255075100Corporate Taxes: 63.0 (rank 21)Individual Taxes: 86.6 (rank 6)Consumption Taxes: 60.3 (rank 15)Property Taxes: 57.3 (rank 22)Cross-Border Tax Rules: 81.9 (rank 8)CorporateIndividualConsumptionPropertyCross-border
Category Rank Score vs 2025
Corporate Taxes #21 63.0 unchanged from 2025
Individual Taxes #6 86.6 down one place from 2025
Consumption Taxes #15 60.3 down one place from 2025
Property Taxes #22 57.3 unchanged from 2025
Cross-Border Tax Rules #8 81.9 up one place from 2025

Ranking Changes, 2014–2026

Turkey's best overall rank was 8th and its worst was 12th. It ranks 9th in 2026.

Overall rank by year for TurkeyTurkey: 2014 rank 9, 2015 rank 8, 2016 rank 9, 2017 rank 9, 2018 rank 10, 2019 rank 8, 2020 rank 11, 2021 rank 12, 2022 rank 10, 2023 rank 11, 2024 rank 11, 2025 rank 11, 2026 rank 92014201520162017201820192020202120222023202420252026Turkey 2014: rank 9Turkey 2015: rank 8Turkey 2016: rank 9Turkey 2017: rank 9Turkey 2018: rank 10Turkey 2019: rank 8Turkey 2020: rank 11Turkey 2021: rank 12Turkey 2022: rank 10Turkey 2023: rank 11Turkey 2024: rank 11Turkey 2025: rank 11Turkey 2026: rank 9#9#9

OECD Context

Each row places all 38 countries on a 0–100 score scale for one measure. Turkey is highlighted; the dashed line is the OECD median.

All 38 Countries' Ranks

Overall and category ranks for all 38 countries
CountryOverallCorporateIndividualConsumptionPropertyCross-border
Estonia#1#2#1#24#1#7
Latvia#2#1#8#22#4#6
New Zealand#3#31#7#1#8#14
Switzerland#4#7#9#4#36#2
Lithuania#5#3#10#23#6#16
Luxembourg#6#20#21#7#15#5
Czech Republic#7#9#4#32#5#11
Australia#8#29#14#9#3#23
Turkey#9#21#6#15#22#8
Hungary#10#5#3#38#23#4
Israel#11#11#31#11#10#18
Slovak Republic#12#24#2#33#7#17
Sweden#13#6#18#26#9#12
Costa Rica#14#35#13#6#11#29
Canada#15#17#28#8#25#28
Netherlands#16#23#30#14#20#3
United States#17#8#17#3#27#37
Austria#18#18#27#17#17#10
Germany#19#30#34#13#12#9
Norway#20#15#29#27#16#15
Mexico#21#28#26#12#2#38
Finland#22#10#24#28#21#24
Greece#23#22#5#29#30#19
Chile#24#32#23#10#13#36
Slovenia#25#14#12#30#24#30
Korea#26#26#38#2#31#34
Belgium#27#16#15#25#28#21
Japan#28#36#35#5#26#31
Ireland#29#4#36#35#18#27
United Kingdom#30#25#22#34#33#1
Denmark#31#19#37#20#14#32
Poland#32#12#11#36#29#25
Portugal#33#34#19#21#19#33
Iceland#34#13#32#19#34#26
Spain#35#33#20#18#35#20
Italy#36#27#16#37#38#22
Colombia#37#37#25#16#37#35
France#38#38#33#31#32#13

Among European Peers

Turkey ranks 7th of 27 European OECD members on the overall index.

Source: 2026 International Tax Competitiveness Index.

Notes on the Data

The 2026 Index uses the most up-to-date data available as of July 2026. Data may not reflect changes in countries making rapid reforms.

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About the Authors

Alex Mengden Tax Foundation
Expert

Alex Mengden

Economist

Alex Mengden is an Economist at the Tax Foundation, where he focuses on international tax issues and tax policy in Europe. He holds a BA in philosophy and economics from the University of Bayreuth and an MSc in economics from the Ludwig Maximilian University of Munich.

Tax Foundation Staff

Luis Zarka

Transatlantic Tax Fellow

Luis Zarka was a 2026 Transatlantic Tax Fellow with the Tax Foundation’s Center for Global Tax Policy.

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Sarah Wilbur Tax Foundation Media Relations Contact

Sarah Wilbur

Communications Manager

Sarah Wilbur is Communications Manager at the Tax Foundation where she advances the organization’s institutional reach by developing its corporate communications and media programs.

Jesse Solis Tax Foundation

Jesse Solis

Vice President of Communications

Jesse Solis is Vice President of Communications at the Tax Foundation, where he leads the communications team and works to build coverage of Tax Foundation’s experts and their work across the globe. He joined the team in 2021 as Communications Manager and became Communications Director in 2024.