A Guide to Filing US Expat Taxes from Turkey

Turkey is a fascinating blend of East and West, known for its rich history, stunning landscapes, and incredible cuisine. But if you’re a US citizen living here, one thing doesn’t change—you still have to file your US taxes. The silver lining? You can do it while sipping Turkish tea and indulging in some delicious baklava!

As you adapt to life in Turkey—exploring its historic sites, learning the language, and settling into a new daily rhythm—you may find yourself wondering: how do I file my US taxes from abroad?

To simplify the process, we’ve put together this guide outlining everything you need to know about when, where, and how to file your US expat taxes while living in Turkey.

Who Should File US Expat Taxes

IRS Deadlines

US Tax Forms Every Expat Should Know

US Tax Benefits Available to Expats living in Turkey

Haven’t Filed Before? Catch Up With The Streamlined Procedure

Taxes For Turkish Residents

Turkish Visas

Filing US Taxes for Your Family Abroad

Expat Taxes for the Self Employed

Basics of Investing for Americans in Turkey

Property in Turkey

Retiring in Turkey

File Your Expat Taxes in Turkey the Easy Way

Who Should File US Expat Taxes in Turkey?

Whether you’re a US Citizen or a US Green Card Holder, you’ll likely need to file annual US Expat Taxes from Turkey.

Now that you know you may need to file, it’s time to discuss the criteria for people who need to file a tax return. The IRS states that anyone who is either A) a US Citizen or B) a Green Card Holder and meets (or surpasses) the minimum income threshold must file a tax return.

If you file as Married Filing Separately and earned over $5 of income in the past year, you also have to file. Another not-so-obvious rule is that if you make more than $400 in net self-employment income, you will need to file regardless of the standard filing thresholds.

In 2025, you must file your 2024 US taxes if:

• You earn more than $14,600,
• You make any self-employment income over $400, or
• You’re married, filing separately, and earn any worldwide income over $5.

IRS Deadlines for US Expats in Turkey

While taxpayers in the US must file by April 15, expats receive an automatic extension until June.

Standard Filing Deadline	April 15th
Payment Deadline for 2025 Taxes Due	April 15th
Automatic Extension for Expats	June 15th
Deadline for Expats Filing an Extension (by June 15th)	October 15th
FBAR Deadline for Expats	October 15th

If any deadline falls on a holiday or weekend, it will be pushed forward to the next business day. For 2025, the automatic June extension will be pushed to June 16th as it falls on a weekend. Be sure to put it in your calendar and set a reminder for yourself a month or so in advance, or sign up for our newsletter to get automatic reminders in your inbox.

US Tax Forms Every Expat Should Know

US expats in Turkey must file several key tax forms with the IRS to stay compliant.

• US Individual Income Tax Return (Form 1040)
• FATCA: Foreign Account Tax Compliance Act (Form 8938)
• FBAR: Foreign Bank Account Report (FinCEN Form 114)

Plus additional forms if you own a business or have investments.

Luckily, you don’t need to know which forms apply to you or how to fill them in. Simply answer the questions in our expat tax software and we’ll do all the work to keep you on the right side of the IRS while maximizing your available tax deductions.

Read more: 6 Tax Forms US Expats Need to Know

US Tax Benefits Available to Expats living in Turkey

US expats in Turkey can reduce or eliminate their US tax liability using two main tools:

• FEIE: Foreign Earned Income Exclusion (Form 2555)
• FTC: Foreign Tax Credit (Form 1116)

The FEIE allows you to exclude up to $126,500 of foreign-earned income from US taxation, but it doesn’t apply to passive income like dividends or rental income. To qualify, you must meet either the Physical Presence Test (living outside the US for 330 days in a 12-month period) or the Bona Fide Residence Test (establishing residency in Turkey).

The FTC gives you a dollar-for-dollar credit for foreign income taxes paid to offset your US tax liability. If you earn above the FEIE limit or don’t qualify for it, the FTC helps offset your US tax with the income tax you paid in Turkey. Unlike the FEIE, the FTC keeps your foreign income “taxable” in the US, which allows you to contribute to US retirement accounts and, as long as you have taxable income after applying the FTC, claim the Child Tax Credit.

Not sure whether to use the FEIE or FTC? Choosing the right tax strategy is crucial for US expats. At MyExpatTaxes, we specialize in taxes for Americans abroad, and our software is designed to help you maximize deductions and refunds effortlessly.

Haven’t Filed Before? Let’s Catch You Up!

Most US citizens and Green Card holders will have filed US taxes in the past, but many are not aware that their duty to file travels with them when they move to a new country. Yes, even while living abroad–whether in Turkey or anywhere else–US citizens are still required to file a US tax return every year.

You might also have missed filing US taxes if you are an “Accidental American“, someone who holds US citizenship but has never lived in the US, such as a person born and raised in Turkey by a US expat parent. If this is new to you, don’t worry! We’re here to help you understand your tax filing obligations.

Catch up with the Streamlined Procedure

The IRS introduced the Streamlined Procedure to help Accidental Americans and expats unaware of their US tax filing duties catch up by filing a limited number of past returns and FBARs without penalties.

The Streamlined Procedure reduces the burden on the IRS of chasing down accidental “tax evaders”, while encouraging those who have recently realized they need to file to report their foreign assets and income. Using this program before the IRS contacts you is crucial because once they do, you become ineligible and could face hefty fines.

You’ll be pleased to learn that MyExpatTaxes offers affordable pricing for the Streamlined Procedure. You can file all the necessary tax returns and FBARs, and a Tax Professional will assist and sign off on your submission.

Taxes for Turkish Residents

Income tax rates are progressive in Turkey, increasing as your income rises. Here are the 2025 income tax rates for individuals:

Income Tax Rates and Thresholds (2025)

• Up to TRY 158,000: 15%
• TRY 158,001 to TRY 330,000: 20%
• TRY 330,001 to TRY 1,200,000: 27%
• TRY 1,200,001 to TRY 293,000: 35%
• Over TRY 293,000: 40%

These progressive rates apply to income such as wages, salaries, and self-employment earnings. Certain deductions and exemptions may reduce your taxable income and there are no local taxes on personal income in Turkey.

Social Security Contributions

In addition to income tax, Turkey has mandatory social security contributions (SGK), typically around 14% of gross salary for employees and 32% of declared income for the self-employed.

Turkish Tax Deadline

In Turkey, the tax year aligns with the calendar year, running from January 1 to December 31. If you only have salaried income, your income tax will be deducted at source via the PAYE system. Self-employed workers and those with income in addition to any salary (such as rental income) have to file their annual income tax return by March 31 of the following year. This deadline is fixed, and there are no available extensions.

Turkish Visas

You can travel to Turkey with your US passport without a visa for up to 90 days in any 180-day period. If you’re traveling for work or to study, you’ll need to arrange your visa in advance from the Turkish Embassy and register for your residence permit after arrival.

Filing US Taxes for Your Family Abroad

Choosing the correct filing status can also save you money. You can figure out how to file by answering a few simple questions.

Firstly, are you married? If so, you can file jointly or separately from your spouse. If you were living in the US, Married Filing Jointly would often provide the best tax benefits. But what if you’re married and living in Turkey? Then it depends–is your spouse a US Citizen?

If your spouse is a US Citizen or Green Card holder the best option is usually Married Filing Jointly. The IRS considers your combined income and assets, regardless of where you live—including Turkey.

If your spouse is a non-US Citizen or Green Card holder, they are not required to file a US tax return. In this case, Married Filing Separately is generally recommended. This keeps your spouse’s financial information separate from the IRS.

Do you pay more than half the costs of maintaining your household during the tax year while supporting a US child? If so, filing as Head of Household may provide better tax benefits.

Child Tax Credits

As a parent living in Turkey, regardless of whether you’re filing as Married or Single, you might be eligible to claim the Child Tax Credit and receive up to a deduction of $2,000 per qualifying child. There is also an Additional Child Tax Credit of up to $1,700 per child in refundable tax credits (meaning it can be paid to you even if you owe no US taxes) although it is not available if you use the FEIE.

If you take advantage of the maximum credits, an unforgettable Turkish Riviera getaway could be closer than you think!

For Self-Employment Individuals

So, you already know that if you earn more than $400 in the year in self-employment, you need to file a US tax return. As Turkey doesn’t have a totalization agreement with the US, you’ll also be subject to the US self-employment tax of 15.3% of your net profit, which is similar to the Social Security and Medicare taxes that are withheld from wage earners and will ultimately help you continue to contribute to your US Social Security benefits account.

If you’re unsure of how to minimize self-employment taxes to the US, MyExpatTaxes can help ensure you don’t pay more to the IRS than necessary!

Basics of Investing for Americans Living in Turkey

Living overseas means investing your money in several ways, just like in the US. While there are some specific regulations regarding expats and investments in Turkey, investing can be relatively simple once you understand the right approach.

Common Ways Expats Invest in Turkey

• RAs/Roth IRAs: If you’re saving for retirement, you can invest up to $7,000 in a US-based Retirement Account (IRA) as an expat assuming you are eligible to contribute.
• Property: American citizens living in Turkey can purchase property for personal use or investment purposes. Turkey’s real estate market offers attractive opportunities, and buying property can also help with residency permits.
• Keep it simple with US Stocks & Bonds: Keeping your stock and bond portfolio US-based is often the easiest and most tax-efficient investment strategy. Expats typically face higher taxes and fees when investing in foreign financial products, such as Turkish mutual funds.

If you decide to invest in Turkish mutual funds, MyExpatTaxes can assist you with reporting these investments to the IRS using Form 8621 (PFICs) at a reasonable price (just like all our prices).

We always recommend consulting a local tax advisor to understand how US-based investments might affect your tax obligations while living in Turkey.

Property in Turkey

Buying & Selling Property

Buying: Whether you’re drawn to Istanbul’s vibrant city life or prefer a quieter, family-friendly area like Bodrum, property prices in Turkey can be more affordable than in the US, though they may vary greatly by location. The associated taxes can also differ from what you may be used to in the US.

Purchasing a home or apartment in Turkey will not trigger a US taxable event. However, if you make a large deposit into your Turkish bank account for your mortgage, you must report it on the FBAR and possibly Form 8938.

Read more: 8 Things to Consider When Buying Property Abroad.

Selling: When selling your property in Turkey, it’s essential to accurately document the cost basis and selling fees to guarantee you only pay taxes on the sale profits. Like US properties, you may be able to exclude up to $250,000 ($500,000 if filing jointly) or more of the gain from the sale of your Turkish property if it was your main home for at least two out of the prior five years.

Should I Rent or Buy in Turkey?

The cost of property has been rapidly rising in recent years, with high demand for both buying and renting. So which is better? It all depends on your situation; here are a few points to consider:

Benefits of Buying

• If done correctly, purchasing property can provide a strong return on investment.
• The price per meter squared is low relative to the US, making property purchases more affordable.
• Owning your home gives you the flexibility to make renovations and personalize your space.

The Downside of Buying

• Mortgage interest rates are significantly higher than in the US.
• As the seller, you may need to pay various fees such as “tapu” (title deed) fees and other costs, which can be confusing without the help of a real estate agent.
• Most properties are freehold, but some properties in Turkey are on leasehold land, which may be subject to renewal when the lease expires.

Benefits of Renting

• Renting is a flexible choice if you’re just settling in Turkey and want to test out different areas before committing to a permanent property.
• Renting is relatively affordable in many parts of Turkey, and you can easily move to a new location due to the country’s well-established rental market.
• Renting could save you money in the long run compared to purchasing property, particularly in major cities.

The Downside of Renting

• Apartments in central locations like Istanbul or Ankara may be smaller than what you might be used to in the US.
• Rent prices tend to increase when your lease comes to an end.
• You’ll be required to return the property in its original condition, which may involve additional costs or maintenance work.

For Landlords in Turkey

Remember to report your rental income and related expenses on your US tax return if you’re renting out property in Turkey.

The Foreign Housing Exclusion

When paying for housing in Turkey, you may qualify for The Foreign Housing Exclusion, which can deduct expenses such as rent or mortgage interest payments, utility bills, property insurance, and other costs related to your home from your US tax bill.

Thinking of Retiring in Turkey?

We don’t blame you! Retiring in Turkey offers a low cost of living, a warm Mediterranean climate, and a rich cultural experience with stunning coastlines and historic sites.

You can claim your benefits while living in Turkey if you’ve earned enough credits from the US Social Security system. As there’s no totalization agreement between Turkey and the US, there’s no arrangement to coordinate Social Security benefits between the two countries, making it challenging to contribute to the Turkish social security system. Exploring private pension options in Turkey is recommended, as these plans often offer favorable tax treatments and can supplement your retirement income. Just be aware that private pension plans can trigger a US Form 3520 reporting requirement, which we can help you better understand in our MyExpatTaxes Planning services.

You might be wondering if you can contribute to an IRA (Individual Retirement Account) while living abroad. The answer is yes but only you have taxable compensation on your US tax return and are not over the income thresholds to contribute. Using the Foreign Tax Credit (FTC) keeps your foreign compensation such as salary and self-employment income taxable in the US. However, income excluded via the Foreign Earned Income Exclusion (FEIE) does NOT count as earned income for IRA contribution purposes. It’s also worth noting that many foreign banks and investment firms won’t allow US citizens to open accounts due to FATCA regulations so keeping your IRA with a US-based provider is usually the best option.

Read more: IRAs for Expats

Get Expert Help Filing Your Expat Taxes in Turkey

If you feel a bit overwhelmed after reading our Expat Tax Guide for Turkey, don’t worry—that’s completely normal! At MyExpatTaxes, we specialize in making US tax filing easy for expats like you. You can browse our Help Center for quick answers, connect with a Tax Professional for personalized assistance, or reach out to us via live chat when you’re ready to start your tax return. We’re here to help every step of the way!

For those still deciding where to go, we’ve got guides on Ireland, Germany, Greece, and More!

File Your US Expat Taxes with MyExpatTaxes

MyExpatTaxes is created by expats for expats! We know how challenging it can be to manage taxes while living abroad. That’s why we built MyExpatTaxes—to make tax filing easier for expats like you.

Transparent Pricing: No hidden fees or surprises! We clearly explain our pricing upfront, so you always know what to expect.

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