Turkey Updates Double Taxation Treaty with Germany: Key Changes for Expats
A revised double taxation agreement between Turkey and Germany came into force in early 2025, introducing important changes to how pension income, rental income, and capital gains are taxed for residents of both countries.
A revised double taxation avoidance agreement (DTAA) between Turkey and the Federal Republic of Germany entered into force on 1 February 2025, superseding the previous agreement which had been in effect since 2011.
The revised treaty introduces several substantive changes that directly affect German nationals residing in Turkey, as well as Turkish nationals with income sourced from Germany.
Under the updated agreement, pension income received from German state pension schemes (Deutsche Rentenversicherung) by individuals resident in Turkey will now be taxable only in Germany, rather than subject to potential taxation in both states. This is a significant change from the prior arrangement, which allowed Turkey to tax such income under certain conditions.
For rental income derived from German real estate by Turkish residents, the treaty now clarifies that Germany retains exclusive taxing rights, and Turkish residents must declare such income in Germany via standard non-resident property income returns.
Capital gains from the sale of German property by Turkish residents remain taxable in Germany under the revised treaty, consistent with the OECD model convention. However, the 10-year holding period exemption previously applicable under German domestic law has been removed for non-residents as of 2024.
Expats with cross-border income streams are strongly advised to consult a German-Turkish cross-border tax specialist to assess their individual positions under the new treaty. Our double taxation treaties guide has been updated to reflect these changes.