Dividend Withholding Tax in Turkey: 15% as of 2025

If you are a non-resident shareholder of a Turkish limited (LTD) or joint-stock company (A.S.), the dividends you receive are now taxed more heavily at source. This guide walks through what changed, who is affected, and how to legally reduce the tax bill using Turkey’s network of double tax treaties (DTTs).

What changed

In December 2024, the Presidential Decree No. 9286 raised the general domestic withholding tax (WHT) rate on dividends distributed by Turkish companies from 10% to 15%. The new rate applies to distributions made on or after the decree’s effective date.

A few key points:

• The 15% is a domestic default rate. It applies whenever no treaty rate is successfully invoked.
• It applies to dividends paid to both resident individuals and non-resident shareholders (individuals and entities), though the mechanics of claiming a treaty rate only matter for non-residents.
• The underlying corporate tax on the profit itself is separate and paid first at the company level.

Who this affects

You are in scope if you are:

• A foreign individual owning shares in a Turkish LTD or A.S. and receiving a profit distribution;
• A foreign parent company receiving dividends from its Turkish subsidiary;
• A private equity, fund, or holding vehicle resident outside Turkey.

Retained earnings and capital increases funded from profits are treated differently. If your Turkish company has not yet distributed, you still have planning room.

Treaty reduction: sample rates

Turkey has DTTs with over 85 countries. Most reduce the dividend WHT to somewhere between 5% and 15%, depending on the shareholder’s ownership percentage and type. Indicative rates from commonly used treaties:

Country of residence	Typical dividend WHT under treaty
Germany	5% (substantial holding) / 15% (portfolio)
Netherlands	10% (substantial holding) / 15% (portfolio)
United Kingdom	10% (substantial holding) / 15% (portfolio)
United States	15%
France	15%
UAE	10% / 15%

These rates are indicative. The exact threshold for “substantial holding” and the applicable rate depend on each specific treaty text. Please contact us to confirm the rate for your country.

How to claim the treaty rate

To apply the treaty rate at source rather than the 15% default, the foreign shareholder must provide:

1. Certificate of Residence (mukimlik belgesi) issued by the tax authority of the home country, covering the year of distribution.
2. A translated and apostilled version where required.
3. Filing the certificate with the Turkish company’s tax office before the dividend is paid out, so the lower rate can be applied at source.

If the certificate is not filed in time, 15% is withheld, and the shareholder must later claim a refund in Turkey. Refund requests are possible but slow.

Practical example

Assume a UK-resident individual owns 100% of a Turkish A.S. that distributes 1,000,000 TRY in dividends:

• Without treaty claim: 15% x 1,000,000 = 150,000 TRY withheld.
• With treaty claim (portfolio rate 15%): in this case, same 15%.
• With treaty claim (substantial holding 10%): 100,000 TRY withheld — a 50,000 TRY saving.

For a German-resident corporate shareholder with substantial holding, the saving grows: 5% WHT instead of 15% means 100,000 TRY saved per 1,000,000 TRY distributed.

What we do

At Galata CPA, we coordinate:

• DTT eligibility analysis for your specific country and ownership structure.
• Obtaining and translating the mukimlik belgesi.
• Filing with the Turkish tax office before distribution.
• Refund claims where WHT was already over-withheld.

For a deeper look at cross-border tax planning, see our international tax page.

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Get the right rate applied at source

Every treaty claim we file on time is money saved. If you are planning a dividend distribution from your Turkish company in the next 12 months, book a DTT review call and we will map out the paperwork before the distribution happens.