Banking, pensions and tax in Turkey
Turkey does not tax pensions paid by social security institutions abroad, and new residents are exempt on all foreign income for 20 years; how US, UK and Canadian pensions reach you, and the tax scale.
How your pension reaches a Turkey bank, what Turkey taxes, and what you still report at home. Checked against official sources on Oct 8, 2026.
- Tax on a foreign pension
- 0% Foreign pensions are not taxed. Income Tax Law; PwC Tax Summaries. Checked Oct 8, 2026.
- Top rate, local income
- 40% Over ₺5,300,000. Income Tax Law; PwC Tax Summaries. Checked Oct 8, 2026.
- US Social Security
- Direct deposit SSA POMS. Checked Oct 8, 2026.
- UK State Pension
- Yearly increases GOV.UK. Checked Oct 8, 2026.
- Canada OAS
- Agreement in force Canada.ca. Checked Oct 8, 2026.
- US FBAR
- Over $10,000 Combined foreign accounts at any time in the year. FinCEN. Checked Oct 7, 2026.
Getting your pension paid in Turkey
United States
Social Security
Yes. Social Security can be paid straight into a bank account in Turkey: the Social Security Administration routes international direct deposits through the Federal Reserve Bank of Kansas City to a processor bank in Turkey, using your IBAN, and has a sign-up form for Turkey (SSA-1199-OP27). Payments go only to US dollar accounts.
SSA POMS. Checked Oct 8, 2026.
United Kingdom
State Pension
It can be paid into a bank in Turkey or a UK account. GOV.UK lists Turkey among the countries where the State Pension goes up every year.
GOV.UK. Checked Oct 8, 2026.
Canada
Old Age Security
Paid while you live outside Canada if you lived in Canada for at least 20 years after age 18. Canada and Türkiye have a social security agreement, in force since January 1, 2005: periods of contribution to the Turkish pension program after age 18 count as residence in Canada when you qualify for OAS.
Canada.ca. Checked Oct 8, 2026.
Other countries: check whether your pension can be paid abroad, whether it keeps rising with inflation there, and whether your country has a social security agreement with Turkey.
How Turkey taxes you
Turkey taxes its residents on worldwide income. You are resident if your legal home is in Turkey or you stay more than six months in a calendar year. Retirement, disability and survivor pensions paid by social security institutions abroad are exempt from Turkish income tax. Under a rule added by Law 7582 in May 2026, a person who becomes resident after three calendar years with no home and no tax liability in Turkey is also exempt on all foreign-source income for 20 years and does not declare it; foreign tax on that income cannot be credited in Turkey. Other income is taxed on a scale from 15% to 40%. The income tax scale:
| Taxable income | Rate |
|---|---|
| Up to ₺190,000 | 15% |
| ₺190,000 to ₺400,000 | 20% |
| ₺400,000 to ₺1,000,000 | 27% |
| ₺1,000,000 to ₺5,300,000 | 35% |
| Over ₺5,300,000 | 40% |
Income Tax Law; PwC Tax Summaries. Checked Oct 8, 2026.
What US citizens still report
US citizens file a US return on worldwide income wherever they live; the US has an income tax treaty with Turkey, which can decide which country taxes some income. Two reports cover money held abroad:
| FBAR (FinCEN Form 114) | Over $10,000 combined, any time |
| Form 8938, single, living abroad | Over $200,000 at year end or $300,000 any time |
| Form 8938, married filing jointly | Over $400,000 at year end or $600,000 any time |
FinCEN; IRS. Checked Oct 7, 2026.
Pension and tax questions
Can I get US Social Security paid in Turkey?
Yes. Social Security can be paid straight into a bank account in Turkey: the Social Security Administration routes international direct deposits through the Federal Reserve Bank of Kansas City to a processor bank in Turkey, using your IBAN, and has a sign-up form for Turkey (SSA-1199-OP27). Payments go only to US dollar accounts.
Will my UK State Pension go up each year in Turkey?
It can be paid into a bank in Turkey or a UK account. GOV.UK lists Turkey among the countries where the State Pension goes up every year.
Is my pension taxed in Turkey?
No. Turkish income tax law exempts retirement, disability and survivor pensions paid by social security institutions abroad. A new resident who had no home and no tax liability in Turkey in the previous three calendar years is also exempt on all other foreign income, private pensions included, for 20 years. US citizens still file a US return.
Do I still file a US tax return?
Yes, US citizens file on worldwide income wherever they live, and report foreign accounts on an FBAR once they pass $10,000 combined at any point in the year.
Can US Social Security be deposited to a bank in Turkey?
Yes. The Social Security Administration pays by international direct deposit into US dollar accounts at banks in Turkey, with a sign-up form for Turkey. It pays only into USD accounts.
Does Turkey tax foreign pensions?
No for pensions paid by social security institutions abroad, which are exempt. A new resident with no home or tax liability in Turkey in the previous three calendar years is also exempt on all other foreign income for 20 years.
Is the UK State Pension frozen in Turkey?
No. GOV.UK lists Turkey among the countries where the State Pension goes up every year.
