CHAPTER 02 · BEFORE YOU MOVE
Map your income before you move.
Classify earnings, investments, pensions and transfers without confusing payment location with income source.
An income-by-income schedule reviewed by a qualified adviser.
Being paid in euros or dollars by a foreign customer does not automatically create foreign-source income.
Create an income inventory
- List each payer, owner, underlying asset or activity, country and currency. Separate salary, freelance work, company profits, dividends, interest, rent, pensions and disposal proceeds.
- Record where work is physically performed and where services are used. For a business, identify offices, management, personnel, contract negotiation and delivery.
- Separate the date income is earned or arises from the payment and transfer dates. Record whether a receipt is a new earning, repayment, gift, capital contribution or movement of existing savings.
- Ask for the Turkish classification, the source-country position and any treaty analysis for each line. Keep unresolved items out of any projected exemption calculation.
Common situations
| Receipt or activity | Starting analysis | Practical evidence |
|---|---|---|
| Rent from a property abroad | Potential foreign-source income; exemption eligibility and source-country tax still matter | Title, lease, rent ledger and foreign tax statements |
| Dividend from a genuinely foreign company | Potential foreign-source personal dividend; company residence and management also need review | Ownership, dividend resolution, accounts and withholding certificate |
| Salary for work performed from Türkiye | Requires Turkish-source employment and payroll review; an overseas employer alone is insufficient | Contract, work-location log, payroll and employer structure |
| Freelance services delivered from Türkiye | Review Turkish business/professional income and separate export-service rules | Scope of work, client location, delivery/use evidence and invoices |
| Turkish rent, interest or dividends | Review domestic rules; Article 20/D does not shelter Turkish-source income | Bank tax vouchers, lease and distribution records |
| Pension payments | Check pension type, other exemptions and treaty provisions before classification | Award letter, scheme rules and payer status |
| Own savings transferred between accounts | Identify original capital and any embedded income; transfer is not itself a new service or sale | Historic account statements and source-of-funds evidence |
Keep company tax separate from your own
A personal exemption does not exempt an incorporated company’s profits. A company formed abroad can still create Turkish tax questions if management or operations move here. Assess corporate residence, permanent establishment, payroll, indirect taxes and shareholder transactions before retaining an overseas structure.
A salary, a dividend and a shareholder loan are different transactions. Do not relabel the same earnings to obtain a desired result. Ask your accountant to review the legal substance and maintain a trail from the underlying activity to the payment.
Two examples to discuss with an adviser
Illustration: a qualifying new resident owns a flat in France and rents it to tenants there. Communiqué 333 illustrates relief for foreign rent; French obligations are a separate question. A Turkish bank receiving the money does not turn the property into a Turkish asset.
Illustration: a designer lives and performs work in İzmir for a German client. An overseas invoice address does not answer where the income arises. Before using Article 20/D, assess local self-employment, VAT export conditions, social security and work rights. These examples explain the questions, not your individual tax outcome.
Your document checklist
This is a preparation list. The receiving authority or bank may require additional or different documents.
- Contracts and work-location diary
- Rental and property documents
- Company ownership and management records
- Dividend, interest and withholding statements
- Pension award documents
- Historical statements for savings transfers
Ask your adviser
- What is the statutory source rule for each receipt?
- Does my overseas company acquire a Turkish tax presence?
- Which relief applies separately from Article 20/D?