The Greece–Turkey Double Taxation Treaty for Golden Visa Investors

The double taxation treaty between Greece and Turkey, in force since 2004, is a particularly important topic for Golden Visa investors, because it prevents rental income or other types of income earned from property in Greece from being fully taxed a second time in Turkey. In this article we explain the treaty's core logic, how it works for rental income and other income types, and its practical consequences for Golden Visa investors, with up-to-date 2026 information.

Key Facts

The Treaty's Core Logic: The Credit Method

Double taxation treaties generally use one of two methods: the exemption method or the credit method. The main approach in the Greece–Turkey treaty is that tax paid in one country is credited against the tax liability in the other. This means the same income is not taxed at full rate in both countries; only the difference (if any) is paid as a top-up. Treaty provisions prevail over domestic law rules, which keeps the treaty's protection valid regardless of changes in local tax legislation.

How Does It Work for Rental Income?

The most practical scenario for Golden Visa investors is rental income from property in Greece. For real-estate income, the general rule is that income is taxed in the country where the property is located; so rental income in Greece is taxed first in Greece, according to the progressive 15-25-45% bracket system detailed in our rental income tax article.

When this income is declared in Turkey, the tax paid in Greece is generally credited against your tax liability in Turkey, so you do not pay full tax twice on the same income. However, whether the credit is full or partial can vary depending on current Turkish tax legislation and how the relevant treaty article is applied, so confirming the exact mechanism with a tax advisor is strongly recommended.

Dividend, Interest and Royalty Income

Under the treaty, on dividend, interest and royalty payments made from Greece to Turkey or from Turkey to Greece, the reduced rates set in the treaty may apply instead of standard domestic withholding rates (in Greece, often up to 25%). The exact value of these reduced rates varies by income type, ownership structure (for example the share ratio in a company) and whether beneficial ownership conditions are met. For such income, therefore, how the relevant treaty articles apply to the specific situation should be professionally assessed.

Why Is It Important in the Golden Visa Context?

This treaty is directly connected to the scenario covered in our tax residency and living in another country articles. Consider an investor who holds a Golden Visa but continues to actually live in Turkey: as long as they meet the 183-day threshold in Turkey's favour, they remain a Turkish tax resident, and the Greek Golden Visa does not change this. But the rental income from their property in Greece is taxed first in Greece under the property-location rule. This is exactly where the double taxation treaty comes in: the tax paid in Greece is credited on the Turkish declaration, preventing the same income from being fully taxed twice.

The Information Exchange Mechanism

The treaty also regulates information sharing between the two countries' tax authorities; this is a standard provision aimed at preventing tax evasion. This mechanism makes it easier to detect cases where an investor fails to declare their Greek income in Turkey or vice versa, thanks to the flow of information between the two countries. Declaring income in both countries accurately and completely is therefore not only a legal obligation but also a practical necessity.

Points to Watch

• The mechanism for crediting the Greek tax on rental income in Turkey can vary by current Turkish tax legislation; the exact rates and application should be confirmed with a tax advisor.
• The treaty concerns the nature of the income, not the Golden Visa itself; holding a Golden Visa does not change how the treaty is applied.
• Which country you are a tax resident of (the 183-day rule or the centre-of-vital-interests test) is the key factor determining in which direction the treaty is applied.
• For more complex income types such as dividends, interest and royalties, benefiting from the treaty's reduced rates usually requires submitting certain documents (such as a residency certificate) to the relevant tax authority.
• The current version of the treaty text and any protocol changes should be confirmed from official sources before application.

Frequently Asked Questions

1. Is my rental income from Greece taxed in full again in Turkey?
No, it is usually not fully taxed again. Under the double taxation treaty between Greece and Turkey, in force since 2004, the tax paid in Greece is credited against your tax liability in Turkey. Rental income is first taxed in Greece, the country where the property is located; when this income is declared in Turkey, the tax paid in Greece is generally credited so the same income is not fully taxed twice. However, since whether the credit is full or partial depends on current Turkish tax legislation, confirmation with a tax advisor is recommended.

2. Does holding a Golden Visa change how this treaty is applied?
No, the Golden Visa itself does not change how the treaty is applied. The double taxation treaty is applied according to the nature of the income and your tax residency; the Golden Visa only provides a residence permit and does not automatically make you a Greek tax resident (as detailed in our tax residency article). So an investor who holds a Golden Visa but continues to live in Turkey remains a Turkish tax resident and benefits from the treaty's standard credit mechanism for their income in Greece.

3. What advantage does the treaty provide on dividend and interest income?
Under the treaty, on dividend, interest and royalty payments from Greece to Turkey, the reduced rates set in the treaty may apply instead of standard domestic withholding rates. This can provide significant savings compared to standard withholding rates of up to 25%. However, to benefit from the reduced rates, certain conditions (such as holding a specific share ratio or proof of beneficial ownership) usually must be met and the required documents (such as a residency certificate) submitted to the relevant tax authority.

4. How do I determine which country I am a tax resident of?
Tax residency is generally determined by which country you stay in for more than 183 days in a calendar year, or where your "centre of vital interests" (permanent home, family) is. Even if you hold a Greek Golden Visa, if you actually live in Turkey you remain a Turkish tax resident. This reflects, as detailed in our "living in another country" article, the fundamental distinction between the Golden Visa providing a residence permit and tax residency. Which country you are a tax resident of is the key factor determining in which direction and how the double taxation treaty is applied.

5. Which documents should I prepare to benefit from this treaty?
Generally, to benefit from the treaty's advantages (credit, reduced withholding rates), you may need to submit a tax residency certificate and documents showing you are the beneficial owner of the income to the relevant tax authority. In cases like rental income, for the tax paid in Greece to be credited on your Turkish declaration, it is important to keep the tax payment documents obtained from Greece and attach them to your Turkish tax return. Since exactly what format and within what period these documents must be submitted can vary by current legislation, planning the process in advance with a tax advisor is recommended.

Note: The tax information in this article is based on general legislation and can vary by your personal situation and by current Turkish and Greek tax legislation; it does not constitute tax advice. Contact us to assess together how you can benefit from the double taxation treaty and your tax residency strategy — we are with you from the start to the end of the Golden Visa process.