2 tourist tax turkey

Executive summary

Accommodation Tax started to be applied as of 1 January 2023 in Turkey.

Accommodation Tax is imposed on:

• Overnight services provided in accommodation facilities.
• All other services such as eating, drinking, activity, entertainment services and the use of pool, sports, thermal and similar areas, which are sold together with the overnight service and provided at the accommodation facility.

Accommodation operators are required to collect a 2% accommodation tax either from their guests or agencies over the service fees. The tax is to be paid by declaring it to the Revenue Administration within the following month.

Detailed discussion

Accommodation Tax was first introduced into the Turkish tax legislation in 2019, but its implementation was postponed until 1 January 2023, largely due to the pandemic.

Following the promulgation of the General Communique on Accommodation Tax Application on 14 December 2022, this tax entered into force on 1 January 2023.

The subject of the Accommodation Tax is basically overnight services provided in accommodation facilities.

There is no restriction in terms of accommodation facilities in the relevant legal regulations. Overnight services provided in all facilities providing accommodation services, regardless of the type, class, quality of the facility, and whether it has a tourism operation certificate and/or a business establishment/operation certificate according to the relevant legislation are taxable.

Accordingly, overnight services offered in hotels, holiday villages, boutique hotels, private accommodation facilities, motels, hostels, apart hotels, thermal facilities, wellness facilities, farmhouses, village houses, and camp sites, among others, are subject to the tax.

All other services such as eating, drinking, activities, entertainment, use of pool, sports, thermal and similar areas, etc. are also subject to the tax if they are sold with overnight services and are provided at the accommodation facility. In this context, all services provided within the scope of the concepts such as bed & breakfast, half pension, full pension, all-inclusive, ultra-all-inclusive and similar are subject to the tax.

Rate and base of tax

The applicable rate is 2%. This tax will be calculated over the service fees falling into the scope of tax.

Liable party

Accommodation facility operators are subject to the tax. They will calculate and collect the tax either from their guests or travel agencies and will pay it by declaring it to the Revenue Administration within the following month.

Liabilities

The main responsibilities of accommodation facility operators are as follows:

• Establishing Accommodation Tax Liability prior to the commencement of operations, after the accommodation facility is fully or partially ready for operation.
• Calculating and showing the tax amount on invoices and other similar documents
• Filing the Accommodation Tax Declaration for each month by the 26th day of following month.
• Paying the collected tax amount to the Revenue Administration during the same time period.
• Retaining and upon request submitting information and documents proving the scope of the service provided and the concept in which the guest receives the service in question such as announcements, advertisements, pre-contracts, offers, reservations, contracts, and similar documentation.

Penalty provisions stated in the Tax Procedural Law are applicable for those who do not comply with the provisions regulating the Accommodation Tax.

In accordance with the legal regulations regarding the Accommodation Tax, if the following cases are determined by the Revenue Administration, unforeseen costs such as tax assessment, delay interest, tax loss penalty or irregularity penalties may be imposed on the taxpayer:

• Failure to establish Accommodation Tax liability
• Failure to submit the Accommodation Tax Declaration on time or an incomplete declaration of the tax base in the declaration
• Failure to comply with obligations such as certification, preservation and submission determined by the Tax Procedure Law

Further legislation or arrangements regarding the Accommodation Tax have not been published yet as of publication of this Alert. Thus, additional legislative information or arrangements are expected to be published to determine the additional details on its application, such as liability establishments and declarations.

_________________________________________

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S. Istanbul, Turkey

• Yakup Gunes | [email protected]
• Aynur Curguc | [email protected]

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

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All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

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Turkey implements 2% Accommodation Tax 2023

Delayed tax on overnight accommodation services introduced 1 january 2023.

The much delayed Turkish 2% Accommodation Tax was implemented from 1 January 2023.

Dec 2021: COVID-19 economic fallout puts back new tax implementation date

The Turkish government had pushed back again the introduction of its 2% Accommodation Tax at the end of 2021. It is charged in addition to VAT, payable bi-monthly..

This covers the supply of accommodation services provided by hotels, motels, holiday camps, hostels, apart hotels, guesthouses, camping sites and mountain houses, as well as all other services provided in those accommodation facilities (such as food and beverage, activities, entertainment services, and the use of pools, sports, thermal pools and similar areas).

The current VAT rate in Turkey is 18%.  There are reduced rates of 8% and 1%.

Future global VAT / GST changes

Richard Asquith

Richard is a frequent contributor to international VAT and GST debate and public policy consultations. Prior to VAT Calc, he helped establish and grow two tax tech businesses. He started his career with the 'Big-4', working with KPMG and EY in the UK, Hungary, Russia and France

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Turkey Tourist Tax Calculator

How much tourist tax will I pay in Turkey?

The tourist tax in Turkey is typically around 1% of the total amount spent on accommodation and services during your stay. For a rough estimate, if you spend 1,000 TRY on accommodation and services, the tourist tax would be approximately 10 TRY.

Is tourist tax included in package holidays?

In many cases, tourist tax is not included in package holidays. It’s advisable to check with your travel provider or tour operator to confirm whether the tourist tax is included in your package or if you need to pay it separately upon arrival.

How do you calculate tourist tax?

Tourist tax is generally calculated as a percentage of the total amount spent on accommodation and services during your stay. The specific rate may vary, but for estimation purposes, assume a rate of 1% of the total expenditure.

How much tax will I pay in Turkey?

The overall tax you pay in Turkey depends on various factors, including the type and amount of your purchases, accommodation costs, and services used. As a rough estimate, consider allocating around 1-2% of your total spending for various taxes.

Is Turkey tax-free for tourists?

Turkey is not entirely tax-free for tourists. While there might be certain exemptions or reduced rates for some goods, services, or regions, tourists generally encounter taxes on accommodations and purchases.

Is tourist tax per person or per room?

Tourist tax is typically charged per person, and the rate is applied to the total amount spent on accommodation and services during the stay.

Is there a hotel tax in Turkey?

Yes, there is a form of tourist tax applied to accommodations and services, usually included in the overall cost of your stay. It’s advisable to confirm this with the specific hotel.

What happens if you don’t pay tourist tax?

Failure to pay tourist tax may result in penalties or fines imposed by the local authorities. Hotels and accommodations usually collect this tax on behalf of guests.

Does Jet2 include tourist tax?

Jet2 holidays may not include tourist tax in the package. It’s recommended to check with Jet2 or the specific tour operator to determine if the tourist tax is included or needs to be paid separately.

Who gets tourist tax?

Tourist tax is typically collected by the local authorities from tourists staying in accommodations such as hotels, resorts, or rental properties.

Why do you have to pay tourist tax?

Tourist tax is used to fund local services, infrastructure, and tourism-related initiatives. It helps support the development and maintenance of tourist destinations.

How much is Turkey tax-free?

There isn’t a specific tax-free amount in Turkey for tourists. Tax rates and exemptions may vary, so it’s advisable to inquire about specific tax-free thresholds for certain goods at the point of purchase.

What is tax-free in Turkey?

Certain items, such as exported goods, may be eligible for tax-free status. However, the availability and criteria for tax-free purchases can vary, so it’s recommended to inquire at the point of sale.

What is the free zone in Turkey?

Turkey has free zones where specific economic activities enjoy tax advantages and exemptions. Examples include the Aegean Free Zone and the Mersin Free Zone.

Do Brits have to pay to enter Turkey?

As of my last knowledge update in January 2022, British citizens could enter Turkey without paying a visa fee. However, entry requirements can change, so it’s crucial to check the latest information with the relevant authorities.

How much GBP should I take to Turkey?

For daily expenses, a rough estimate could be around £50-£100 per person, depending on your spending habits and the duration of your stay.

Is it better to take GBP to Turkey?

It’s advisable to exchange GBP for Turkish Lira upon arrival in Turkey for better local currency rates. While some places may accept GBP, it’s more practical to use the local currency.

What is the sales tax in Turkey for foreigners?

The standard Value Added Tax (VAT) rate in Turkey is 18%. Foreigners are generally subject to the same tax rates as locals on goods and services.

Do foreigners pay VAT in Turkey?

Yes, foreigners are subject to the standard VAT rates on goods and services in Turkey. The current rate is 18%.

How much is hotel tax in Turkey?

The hotel tax or tourist tax in Turkey is usually around 1% of the total amount spent on accommodation and services during your stay.

Do hotels charge per room or per guest?

Hotels typically charge tourist tax per guest, and the rate is applied based on the total amount spent on accommodation and services.

What is the city tax and tourist tax?

City tax and tourist tax are often used interchangeably and refer to additional charges imposed on tourists staying in accommodations to support local services and infrastructure.

Do you need anything to travel to Turkey?

As of my last knowledge update, most travelers to Turkey require a valid passport. Entry requirements, including visa policies, can change, so it’s essential to check the latest information with the relevant authorities.

Is there tax at restaurants in Turkey?

Restaurants in Turkey generally include taxes in the final bill. However, it’s advisable to check the bill for any service charges or additional taxes.

What do you need to get into Turkey?

Typically, travelers need a valid passport to enter Turkey. Entry requirements may vary, so it’s important to check the latest information with the relevant authorities.

Do you get tourist tax back?

Tourist tax is usually non-refundable. Once collected, it goes towards supporting local services and initiatives.

Can you claim tourist tax?

Tourist tax is generally not claimable. It is collected to fund local services and infrastructure.

Can Airbnb hosts charge tourist tax?

Yes, Airbnb hosts in certain locations may be required to collect and remit tourist tax on behalf of guests. The rules can vary by region, so hosts should be aware of local regulations.

Do Easyjet holidays include tourist tax?

The inclusion of tourist tax in Easyjet holiday packages may vary. It’s recommended to check with Easyjet or the specific tour operator to confirm whether the tourist tax is included.

Can I take my own food on Jet2 flight?

Jet2 has specific policies regarding bringing food on flights. Generally, bringing snacks is allowed, but it’s essential to check the airline’s guidelines for any restrictions.

Can I take food in my hand luggage Jet2?

Jet2 generally allows passengers to bring snacks in their hand luggage. However, it’s important to review the airline’s specific guidelines on food items.

How does the tourist tax work?

Tourist tax is usually a percentage of the total amount spent on accommodation and services during a tourist’s stay. The collected funds go toward supporting local services and initiatives.

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From January 1, 2023, tourists in Turkey will have to pay lodging tax. What is the essence of the new law?

Since the beginning of next year, all tourists who stay in hotels, motels, holiday villages, boarding houses, etc. will have to pay a lodging tax. What is the essence of the law? How will it work? All this you will find out from the article.

What is the essence of the law and how much it will cost?

According to  Turizm Guncel , this law (Law No. 7338) is not new — the legal regulation of the lodging tax was adopted back in 2019. However, its implementation has been delayed all along: due to various reasons, the number of tourists in Turkey has been decreasing in recent years, and the government probably feared that such a tax would further discourage holidaymakers. However, this year the number of tourists has increased significantly, and the Ministry of Finance and the Tax Service have prepared a draft on how to apply the previously postponed lodging tax. 

According to the draft, VAT will not be included in the tax base for housing. According to the law, the lodging tax rate is 2% , but the President has the right to increase this rate up to one time and to decrease it by half. For example, for a service costing 5,000 lire in a full-board hotel, the lodging tax would be over 5,000 lira excluding VAT. In this case, the lodging tax will be the equivalent of 100 lira. VAT over 5,000 lira will also be charged. The cost is 400 lira. The total amount will be calculated by adding the rental and VAT and the total amount will be 5,500 lira.

Various income related to the offered accommodation services, such as the difference in maturity, price difference, foreign currency difference, interest, bonuses, and all types of benefits, services, and valuables provided under similar names, will also be included in the assessment. If the price is calculated in a foreign currency, the foreign currency will be converted into Turkish currency under the Central Bank’s foreign currency purchase rate in effect on the date of the taxable event. For example, the operator of a holiday village (A) sold five nights (B) in a single room from 10 to 15 July 2023 for €200 excluding VAT on 14 March 2023. In this case, the base will show the equivalent of €200 in Turkish Lira at the foreign currency purchase rate valid on July 15, 2023. 

Who will have to pay the tax?

The tax will apply to those tourists who want to stay in a hotel, motel, holiday village, guesthouse, apart-hotel, thermal facility, guesthouse, or mountain house, as well as in units such as tents, tent cars, caravans, motor homes, bungalows. 

All other services offered in the accommodation facility sold together with accommodation service are liable to a lodging tax. For example, meals, drinks, activities, entertainment services, and the use of swimming pools, sports, thermal, and other similar areas offered in an accommodation facility are taxable. In this context, all services that are sold as «packages» under the names bed and breakfast, half-board, full-board, all-inclusive, ultra-all-inclusive, etc. will be taxable. For example, even if the breakfast service included in the accommodation option «breakfast in the hostel» is listed separately on the accommodation bill or is billed separately for this service because it is sold together with the accommodation service, the service offered on-site will be subject to lodging tax. However, in the spa and pool areas of the thermal hotel, if the daily service is provided to those who are not staying in the hotel, this service will not be subject to lodging tax.

Who is not affected by the tax?

However, a wedding, circumcision, congress, and meetings will not be taxed. Circumcision, wedding, cocktail party, meeting, congresses, symposiums, and similar arrangement services provided in hotels, regardless of accommodation service, will not be imposed with tax. If these organizational services are provided including accommodation, if the types of the organizational services are indicated in the bill or a separate bill is issued for the service, no accommodation tax will be levied on these services. Only accommodation services will be taxed.

Source: Turizm Guncel 

Do you want to buy a flat in Turkey? Visit REALTING catalog the Real estate in Turkey section and choose the option that will suit your needs.

Turkiye to introduce 2.0-percent accommodation tax for tourists from January

Tourists in Turkiye will be charged with a 2.0-percent accommodation tax starting on January 1, 2023. 

Turkish media reports say the accommodation tax will be levied on persons living in hotels, holiday villages, boutique hotels, motels, boarding houses, villages, highland homes, and campsites.  Public gust houses, recreation centers, and camps are also subject to the tax

Turkish Resmi Gazete says the accommodation tax will be collected by the hotels themselves and other accommodation facilities.

When making an organized tour, the accommodation tax may be included by the tour agencies in a travel voucher.

Meanwhile, students in student residences, hostels, and camps are exempt from paying the accommodation tax.

Representatives of diplomatic missions and international organizations possessing diplomatic status are also exempt from paying the accommodation tax.  

Duvar online news portal says the relevant regulation was in fact published in 2019, but its effective date has been postponed since then and it will enter into force on January 1, 2023.

A source in the Union of Hoteliers of Turkiye told TASS that almost all hotels, especially in resort areas, are ready to work in new conditions, and there is nothing unusual in this.  According to him, booking services are also adapting to it.

“All the work should be completed now, the General Directorate of Taxes and Duties of Turkiye will exercise strict control over the implementation of the decision on the collection of residence tax,” the source said.

Representatives of the Turkish tourism industry have previously opposed the introduction of the accommodation tax.  They noted that this could weaken the competitive position of the country, which, unlike many others, had not previously collected such fees.

Report news agency says that according to Minister of Culture and Tourism Mehmet Nuri Ersoy, by the end of the current year, the country expects 51.5 million tourists.  Tourism revenue is projected at US$46 billion.  Turkiye reportedly hopes to receive 60 million tourists next year.

Accommodations tax means the municipal accommodations tax of the City on the furnishing of rooms or accommodations by any person, partnership, association, corporation, estate, representative capacity or any other combination of individuals by whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, inn, bed and breakfast residence, apartment hotel, lodging house, motor hotel, guest house, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, or similar establishment, for a period of less than thirty days under any concession, permit, right of access, license to use, or other agreement, or otherwise, at such rate and on such terms as conditions as prescribed in the Code.

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Table of contents

When can a hotel ask a tourist to pay a fee, which tourists will not be affected by the new tax.

The new tax on early booking holidays in Turkey will come into force on 1 January 2023. Find out more about how the changes in legislation will affect tourists booking their Turkey travel guidelines

From January 1, 2023, a new tourist accommodation tax will come into effect in Turkey, which will be charged to hoteliers: 2% of the amount received for the accommodation of guests. However, information began to appear on social networks that hotels began to warn future visitors about the need to pay additional funds.

According to the text of the law, the new tax applies exclusively to hoteliers. Tourists, travel agencies or tour operators should not pay it. However, the text of the law does not specify who should pay the fee in case of early bookings for tours for 2023, which took place before the introduction of the new tax.

Due to the fact that there are no clear instructions, hoteliers choose one of the options at their discretion:

•  to pay 2% and not to charge tourists additional funds;

•  demand additional payment for the tour from travel agencies or tour operators;

•  additionally charge 2% from tourists upon check-in.

Experts believe that it is possible that the tourism authorities of the country will provide additional recommendations explaining how to act in case of early booking. However, for the time being, at the first stage, each hotel or hotel chain will choose the most suitable option for itself, offer it to guests and partners and analyze their reaction. That is why some hotel chains have already begun to announce that they reserve the right to demand the payment of accommodation tax from tourists during check-in.

It will become clearer how to act in this situation at the beginning of January, when hotels will begin to accommodate tourists according to the new rules.

Representatives of Turkish travel operators emphasize that issues with the tax may arise only in tours that were booked before the new law comes into force, i.e. until mid-December 2022. If the tour was purchased in the second half of December, the tax is already included in its price. Pay attention!  In order to protect yourself from insurance events and receive assistance in choosing an insurance policy, as well as to be informed about your actions in the event of an insured event, VisitWorld recommends   taking out travel insurance  in advance.

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Turkey enacts new tax Law

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Executive summary.

The Turkish Government published Law No. 7338 Amending Certain Provisions in the Tax Procedure Law and Some Other Laws in the Turkish Official Gazette on 26 October 2021. The Law entered into force on the same date.

The Law was passed with few amendments to the proposed Bill. For background on the proposed Bill, see EY Global Tax Alert,  Turkey proposes new tax bill , dated 4 October 2021.

This Alert summarizes the key provisions of the Law and some provisions that were not covered in the previous tax alert.

Detailed discussion

Income tax and value added tax (vat) exemption for social media content producers and app developers.

Income, derived by individual social media content producers who share content such as written text, audio, visual or video content over social network providers and those who develop apps for mobile devices such as smart phones and tablets, that does not exceed the fourth income bracket set forth in Article 103 of the Income Tax Code (TL 650.000 for 2021) will be exempt from income taxation and there will be no obligation to submit a tax return for such income.

To benefit from this tax exemption, it will be mandatory to open a Turkish bank account and collect all revenues related to such activities only through this account. Banks operating in Turkey will be required to withhold 15% tax on the amount of revenue transferred to such accounts.

The President of Turkey will be authorized to reduce the withholding rate to zero and to redetermine it by increasing it by one-fold for each type of activity.

The Law also provides VAT exemption for deliveries and services subject to content sharing and app development provided by those individuals.

These provisions will be applicable on income obtained as of 1 January 2022.

Conditions for 5% tax deduction for compliant taxpayers

According to the provision, which was effective as of 1 January 2018, under Income Tax Code No. 193; a tax deduction of 5% was introduced for income tax taxpayers who conduct commercial, agricultural and self-employment activities, and for corporation taxpayers (excluding those operating in the finance and banking sectors, insurance, and retirement companies and retirement investment funds).

One of the conditions to be a compliant taxpayer was that there should be no additional ex officio or administrative tax assessments conducted against the taxpayers in terms of tax types subject to declaration, in the year in which the deduction is to be calculated, and in the last two years before this year.

The Law changes this condition and states that the reduction can be applicable if the tax assessments are not finalized in said period. In the event that the finalized assessments within said period are less than 1% of the discount amount limit, the conditions for benefiting from the tax deduction will not be deemed as violated.

The amendment to the reduction for tax compliant taxpayers will come into effect on 26 October 2021 and will become applicable for annual income and corporate tax returns filed as of 1 February 2022.

Notional Interest Deduction (NID) rate on cash capital contributions

The Law increases the NID rate for cash capital contributions made from abroad to 75%. It was previously set at 50%.

Including the Mutual Agreement Procedure (MAP) in the Tax Procedure Law

The Law introduces some additional provisions regarding the MAP i.e., application procedures, finalization procedures, its impact on lawsuits that are already filed before the MAP application and the filing of lawsuits after the MAP.

Taxpayers may apply to the Turkish Revenue Administration (TRA) in accordance with the MAP provisions of the double tax treaties with the allegation that they have been taxed in violation of the provisions of the double tax treaties or that there are strong indications that they will be.

It is also regulated in the Law that the application should be made in due time and in line with the procedure that is stipulated in the double taxation agreements.

However, when there is no time limit in the double taxation agreement or reference is made to the provisions of the domestic legislation, it is explained that the application must be made within three years from the date that the taxpayer first became aware of a taxation transaction alleged to be in violation of the provisions of the double taxation agreement.

The Law provides that applying for MAP will cease the period of filing a lawsuit. The result of the agreement reached between the TRA and the competent authority of the other Contracting State will be notified to the taxpayer by letter. The taxpayer will notify the TRA of the acceptance of the decision within 30 days from the date of notification of the letter.

Adjustments will be made in taxes and penalties accordingly in the case of the taxpayer’s acceptance of the agreement result in due time.

The Law provides that courts will not be able to decide on the conflict if there is a MAP underway. However, in the event that the court examines and decides on the conflict, the result of the MAP will be taken into consideration and the result will be notified to the judicial authorities by the administration.

Other Key Amendments

Tax return filing and tax payment periods are not changed.

The Law does not change the tax return filing and tax payment dates as proposed by the Bill. The corporation tax and personal income tax filing and payment dates in Turkey remain the same.

The fourth advance corporate tax return filed by corporate taxpayers and income taxpayers, commercial profit holders (except those taxed in the simple entry) and self-employed persons has been abolished to be effective for the returns to be filed as to 2022.

Amendment in the effective date of the accommodation tax

The accommodation tax imposes 2% tax on accommodation services, those rendered by hotels, motels, holiday resorts, guesthouses etc. With the amendment, the effective date of the accommodation tax which was expected to enter into force on 1 January 2022 is postponed to 1 January 2023.

Irregularity/special irregularity fines will also be covered through the tax settlement process

Taxpayers will be able to apply for tax settlement procedures for the irregularity and special irregularity fines exceeding TRY5,000.

Non-compliance with the recording order in electronic record and ledger applications

In case of non-compliance with the recording order in electronic record and ledger applications, a first-degree irregularity penalty will be imposed.

Tax return submissions under voluntary disclosure

Taxpayers will be able to file tax returns under voluntary disclosure for the other types of taxes which are not subject to ongoing tax inspection.

Permanent exemption on Resource Utilization Support Fund (RUSF) and dues for asset management companies

Asset management companies will be permanently exempt from stamp tax, RUSF and dues. The banking and insurance transaction tax exemption will be removed for these companies.

Revaluation practice

The Law introduces additional provisions into Repeated Article 298 of the Turkish Tax Procedural Code No. 231 regulating the inflation adjustments and revaluation rates.

Taxpayers who would like to increase the value of their assets, they will have the ability to re-valuate their immovables and other economic assets subject to depreciation that are recoded in the balance sheet, under certain conditions, by the end of fiscal period prior to the fiscal period in which they will be revalued for the first time.

New arrangement for the investment contribution

On the basis of an investment incentive certificate, 10% of the amount determined by applying the investment contribution rate to investment expenditure, will be used by corporation taxpayers, provided that the deduction from other accrued tax liabilities excluding special consumption tax and VAT is requested by the end of the second month of the following month in which the corporation tax return should be submitted.

Exemption for small business tradesmen

Income of tradesmen whose income is determined on a small business taxation basis will be exempt from income tax.

They will not submit annual tax returns for the exempted income and if they submit a tax return for their other income, they will not include the said exempted income into their tax returns.

This provision will be applicable on income generated starting from 1 January 2021.

Withholding tax on agricultural support payments

Support payments which are made by public institutions for supporting the agriculture industry and farmers will be exempted from income taxation and there will be no withholding tax on these payments. According to provision added through a resolution in General Assembly, taxes levied on agricultural support payments made before 26 October 2021 shall be refunded based on requirements mentioned in Law with respect to applications of farmers.

Expenses to be included in the cost price

Items to be compulsorily or optionally included into the cost price are regulated in detail by the Law.

The Law also indicates that taxpayers can choose to include the special consumption tax, non-deductible VAT, banking and insurance transactions tax and resource utilization support fund related to the acquisition or increase in value of economic assets (excluding commodities) to the cost price; or book them as general expenses.

60-day deadline for the taxpayers without certification report

The Law provides a 60-day additional time for taxpayers whose certification reports are not submitted within the required time. If the certification report is submitted within the 60-day extra timeframe, it will be deemed that the certification report is submitted on time. Otherwise, taxpayers cannot benefit from the rights subject to certification.

New economic assets can be depreciated as of the date they are ready for use

Except for passenger cars subject to pro-rata depreciation, taxpayers are given the opportunity to depreciate on a daily basis from the date they are ready for use, for depreciable economic assets that will be newly recorded in operating assets.

Depreciation practice for newly acquired machines and equipment under certain conditions

The Law provides depreciation rates and periods for certain newly acquired machines and equipment to be as half of the useful life of such equipment until 31 December 2023. (e.g., to be used for research and development, innovation and design activities mentioned in Temporary Article 30 of Tax Procedural Law). It will be applicable between its date of entry into force and 31 December 2023.

Extensions on depreciation periods

It is possible for the taxpayers to extend the depreciation periods, provided that the useful life period determined by the Ministry of Treasury and Finance does not exceed 2 times and 50 years and the same ratio is applied for each year.

Threshold for doubtful receivables

Receivables that do not exceed TRY3,000 (for the year 2021) that have not been paid by the debtor despite the protest or written request more than once, may be considered as doubtful receivables without resorting to lawsuits and enforcement.

Papers to be exempted from Stamp Tax

Within the scope of Article 31/B of the Capital Markets Law, a stamp duty exemption is introduced for the receipts and papers issued in relation to the collateral subject to this issuance, including the collateral manager.

Papers issued between the relevant administration and the donors regarding the donations to be made to general and special budget administrations, special provincial administrations, investment monitoring and coordination departments, municipalities and villages are included in the stamp tax exemption.

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

Gamze Durgun

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert .

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Guide to spending money in Turkey

Turkey travel money guide.

Tips on spending money in the Land of Four Seasons  

From the thermal pools of Pamukkale and the 'fairy chimneys' of Cappadocia to the western Turquoise Coast, Turkey is a very special country to explore.

The country is one of the world’s most popular tourist destinations for British holidaymakers, and it’s only a three to four-hour flight from the UK. With its bustling cities, breathtaking scenery, rich heritage, shopping and cuisine, there’s much to experience.

Here, we break down the local costs and how best to spend your Turkish lira when visiting the country.

What money is used in Turkey?

The currency is Turkish Lira (Türk Lirası). This is the official tender used in the whole country. You will see how much things cost quoted with TL or TRY and the symbol ₺.

You may also see prices in Euros or Dollars in some places.

How much cash should you take to Turkey from the UK?

Working out how much spending money you’ll need for Turkey can be tricky when there’s so much to see and do. As a rough guide, budget for around £40-£50 a day per person to include food, transport and sightseeing.

Travelling with cash is highly recommended, especially if you plan to visit local markets outside of the main cities. You may need coins and small notes for tipping , public transport tickets, and small purchases as soon as you arrive.

It’s also sensible to have a credit or debit card as a backup , just in case.

How much do things cost in Turkey?

With living costs less than half that of the UK, your holiday spending money will stretch much further here. So make the most of eating out, sightseeing and shopping in the famous bazaars!

Here are some typical costs to help you work out how much money you need to take to Turkey:

Average costs in Istanbul

Museum visits: free - 450TL (Dolmabahçe Palace)

Guided tours (full day): 1,000-5,000TL

Mid-level hotel (per night): 1,000-3,000 TL

5* Luxury hotel (per night): 5,000-10,000TL

Average costs in Antalya

Museum visits: free- 30TL

Guided tours (full day): 800TL -2700TL

Mid-level hotel (per night): 1,000-3,00TL

5* Luxury hotel (per night): 5,000-15,000TL

Villa rental (per night): 10,000TL+

The information above is correct as of 23 August 2023. Data sourced from numbeo.com . Note that prices are subject to seasonal and inflationary fluctuations.

Tourist tax in Turkey

From 1 January 2023, Turkey introduced a 2% tourist tax. This will already be included in the price of your accommodation if you booked your holiday this year. But if you booked before the new tax came in, check with your tour operator whether you will have to make any additional payment on check-in.

Tax costs are correct as of 14 July 2023. Data sourced from taxenews.ey.com

There’s so much to explore when it comes to Turkish cuisine. When visiting, it's best to find local restaurants and market stalls if you’re in the mood for something authentic and delicious. You’re also more likely to find more affordable options.

Here’s how much things would typically cost in Turkey:  

Cost of beer & beverages

Beer (bottle): 50TL - 150TL

Wine (bottle): 150TL - 1,000TL

Coke/Pepsi (bottle): around 13TL

Mineral water (bottle): 20 - 30TL

Turkish coffee: 30 - 44TL (generally served with water and Turkish delight)

Cost of eating out

Prices are based on eating at a mid-range restaurant, per person:

Breakfast: 120-200TL for a large buffet with tea

Lunch: 60-80TL for a wrap or salad, 30-40TL for a drink

Dinner:   120-200TL for a meat-based dish, 40-50 TL for appetisers (meze)

The information above is correct as of 23 August 2023. Note that prices are subject to seasonal and inflationary fluctuations.

“We walked past an ice cream vendor after travelling across the Bosphorus Strait in Istanbul. They like to put on a show by offering you a cone and pulling it away (like the videos on social media). My little sister was desperate for one, but it cost us an extortionate amount! They were friendly, but it’s better to watch them from afar if you don’t want to pay for overpriced ice cream.”

Joao Rami Partner & Graphic Designer at John Lewis Money

How much does it cost to travel around Turkey?

Stretching from the Aegean Sea to the Caucasus Mountains, there are plenty of ways to get around and explore.

For experienced drivers, hiring a car is a fairly inexpensive option, with prices from around 500TL – 1000TL a day for a compact car (excluding insurance and road tolls). 

There’s a good network of cheap, quick domestic flights for longer journeys. 

For public transport, city metro rides start at a reasonable 10TL. If you plan to explore by public transport, get a discount travel card.

Intercity buses are very affordable and frequent:

Istanbul to Ankara:  300 - 400TL

Antalya to Adana: 300 - 420TL

Airport transfer to city centre

A Private transfer service (usually a fixed price per group/person) is no more expensive than a taxi. It’s also bookable and hassle-free. Some hotels may offer this as a service to guests, so make sure to check their website or contact them directly to arrange an airport pick up.  

Taxi: 350TL, 50 mins

Airport bus: 67TL, 1hr 40 mins

Taxi:  250-300TL, 25 mins

Airport bus:  75TL, 1 hour

How much should you tip in Turkey?

When deciding how much money to take to Turkey, don’t forget to factor in tips . Tipping is common in many of the usual situations as a sign of appreciation.

Tipping in restaurants

It’s always advisable to leave a tip in a restaurant as a sign of respect. Tip a small percentage of the total in cash directly to the person who served you. You can’t usually include the tip on a credit card.

Tips for taxi drivers

Tipping isn’t essential, but if you are happy with the service, it’s normal to round up the fare. For instance, a fare of TL96 would round up to TL100.

If you’ve hired a driver for the whole day or for a private airport transfer, it’s customary to tip 5-10% of the agreed total.

Tips for hotel staff

It’s customary to tip the housekeeper at the end of your stay. There may be an envelope with the guest information in your room or a tip box at reception or in the breakfast room.

Shopping and souvenirs

When working out how much spending money you’ll need in Turkey, make sure there’s enough to take full advantage of its open-air markets, covered bazaars, and boutiques.

Prices are around 60% cheaper than in the UK, and haggling is usually all part of the experience!

Other currencies

We’ll make it quick and easy for you to buy Euros, so you can focus on packing for your European adventure.

We can help tick off that one thing on your USA to-do list when you order US Dollars online from us.

Off to Dubai or Abu Dhabi? Here’s how you can buy UAE dirham for your upcoming trip to the UAE.

This article is for promotional or information purposes only. You must not rely on it as advice. Please contact a financial adviser if you need advice before you buy a financial product or service.

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Tourism tax rates in Türkiye

Last updated 9 January 2020 | No change from December update when accommodation tax legislation was published in the Official Gazette.

While best efforts have been made to verify the accuracy of the information, the information displayed should be used as guidance only.

Konaklama vergisi

The National Assembly approved in November 2019 to implement an accommodation tax ( konaklama vergisi)  from 1 April 2020 ( Law number 7194, Articles 9 and 42 ). The rate is determined by national government and applicable to nearly all types of accommodation. The President may increase this rate up to three times, reduce to 1% and determine different rates within these limits.

*All services such as food, activity (e.g. golf or spa) are included in the cost of stay if the person is staying in the hotel that provides these services.

If the person uses hotel services but does not stay overnight in the same hotel, this is not taxable.

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