Turkey vs. Germany: Tax & Business Location Compared
Corporate tax, exit taxation and EU access, a factual comparison for entrepreneurs considering a relocation.
Germany and Turkey side by side
The key tax and structural criteria, compared directly.
| Criterion | Germany | Turkey |
|---|---|---|
| Corporate tax (standard rate) | approx. 30% (corporate tax + solidarity surcharge + trade tax, municipality-dependent) | 25%, reduced for certified manufacturers (12.5%) and in special zones |
| VAT | 19% | 20% |
| Double taxation agreement | in force since 2011 | in force since 2011 |
| New incentives for newcomers | – | up to 20 years exemption on foreign-source income (Law No. 7582, 2026) |
| Exit tax when relocating | Applies for ≥1% corporate shareholdings when relocating (§ 6 AStG). Turkey counts as a third country, so only the standard installment deferral applies instead of the EU/EEA privilege, always clarify details with a tax advisor. | the relocation itself does not trigger a Turkish exit tax |
| Trade in goods / EU access | EU single market | EU-Turkey Customs Union, covers industrial goods, not services or agricultural products |
Frequently asked questions about Turkey vs. Germany
Does relocating a company to Turkey automatically trigger the German exit tax?
Only under certain conditions, in particular a corporate shareholding of at least 1% combined with personal relocation. The exact rules (§ 6 AStG) depend heavily on your individual case and should always be reviewed with a cross-border tax advisor before you move.
Is Turkey more favorable than Germany for corporate tax?
At the standard rate, yes, 25% versus roughly 30% in Germany. With additional incentives for manufacturers, special zones and regional headquarters the gap can be considerably larger, see our tax overview.
Is the double taxation agreement between Germany and Turkey still in force?
Yes, it has been in force in its current version since 2011 and regulates, among other things, which state may tax which income.
What does the EU Customs Union mean in practice for my business?
The Customs Union significantly simplifies trade in industrial goods between the EU and Turkey. Services, software or consulting are not covered, different rules apply there, which your partner will clarify with you.
Keep reading
What does this mean for your structure specifically?
The free assessment gives you a first read, the final tax review is handled by a licensed partner with cross-border experience.