How the taxation of digital assets in Turkey will change starting in 2025

2026-01-09 13:15:30

Turkey has strengthened its regulatory approach to cryptocurrencies and will introduce a differentiated tax system starting in 2025. This step reflects the effort to fully integrate digital assets into the national financial infrastructure. For all market participants – from institutional investors to private users – it is essential to understand the new regulations to ensure tax compliance and minimize legal risks.

Growth of the Cryptocurrency Market in Turkey as a Driver of Taxation

The dynamics of the Turkish crypto market have developed rapidly. According to the Turkish Statistical Institute, the country experienced a 50% increase in users between 2023 and 2025, making Turkey one of the fastest-growing markets in the region. This exponential growth led to a corresponding increase in taxable transaction volumes, prompting Turkish authorities to establish a robust tax control system.

Three Pillars of Taxation: Capital Gains, Income, and Value-Added Tax

Capital Gains Tax on Short-Term Cryptocurrency Positions

When investors sell cryptocurrencies in Turkey, taxes are levied on realized gains – but with a tax-free allowance. The tax-free threshold for capital gains from cryptocurrencies in 2025 is exactly 18,000 TRY. Gains exceeding this amount are taxed progressively. Depending on the individual’s total income, tax rates can reach up to 35%. This regulation applies especially to positions held for less than a year – long-term investments are subject to more favorable conditions.

Income from Mining and Staking

Mining and staking are not classified by the Turkish tax authorities as capital investments but as active income sources. The taxable amount is assessed based on the market value of the coins received at the time of receipt. These earnings are subject to regular income tax rates, which range between 15% and 35% – depending on the individual’s income bracket and overall tax liability.

VAT Exemption Promotes Adoption

A significant relief for users is the VAT exemption on the purchase and sale of cryptocurrencies themselves. This regulation, effective from 2025, reduces the overall burden on retail investors and aims to promote the spread of digital currencies. However, services related to crypto transactions – such as broker fees or exchange commissions – remain subject to regular VAT.

Compliance Requirements and Practical Implementation

Turkish authorities expect all cryptocurrency users to keep complete and traceable records of their transactions. This includes data, amounts in Turkish Lira (TRY), and the market value of each asset at the time of the transaction. This documentation is essential for correctly reporting gains and income in the annual tax return.

At the same time, the Turkish tax authority has significantly improved its control mechanisms. The increased monitoring capacity allows authorities to scrutinize crypto transactions more targetedly and detect discrepancies. This underscores the necessity of strictly adhering to reporting obligations.

Strategic Recommendations for Market Participants

To meet the requirements in Turkey, investors should take the following measures:

Documentation: Collect and archive detailed proof of all transactions
Valuation: Document the market value at the time of acquisition and sale
Categorization: Distinguish between short-term speculation (under 1 year) and long-term investments
Professional Advice: Consult a tax advisor familiar with cryptocurrencies for more complex situations

Conclusion: Integration Instead of Ban

Turkey’s government strategy regarding cryptocurrencies is characterized by integration and regulation – not prohibition. The tax system accounts for various usage scenarios: speculation is taxed more heavily, while VAT exemptions promote long-term investments and technological adoption. The combination of clear rules, increased control capacities, and progressive tax rates creates a structured market. Those who comply with the regulations benefit from legal certainty; those who neglect them risk substantial fines and criminal consequences. Turkey thus positions itself as a regulated market for digital assets in the region.

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