A Draft law named “Amendments to Tax Laws, Certain Other Laws, and Decree Law No. 631” was submitted to the Grand National Assembly on October 17, 2025. It includes various proposed changes on various laws.
Some of these changes are expected to have an impact on personal income tax as well as social security costs. The key highlights are summarized below:
The changes proposed in the law are as follows:
| Subject for Proposed Change | Current Practice | Proposed Change |
| Exemption of rental income up to 47,000 TRY from income tax | Exemption is applicable for every taxpayer. | Exemption limited to taxpayers receiving pension, disability, or invalidity payments from social security institution as of 2026 |
| Eligibility for mortgage interest deduction from rental income | Deductible for all properties | Deductibility limited to non-residential properties as of 2025 |
The changes proposed in the law are as follows:
| Subject for Proposed Change | Current Rate/Status | Proposed Rate/Status (as of 01.01.2026) |
| Employer social security contribution rate | 20.75% | 21.75% |
| Social security ceiling (Equivalent to TRY 195,041.40 as of today.) | 7.5 × minimum wage | 9 × minimum wage |
| Social security premium rate for indebtment scheme application in various occasions[1] | 32% | 45% |
| Voluntary insurance premium rate | 20% | 21% |
| Employer social security incentive rate for compliant employers | 4-point reduction | 2-point reduction |
If the draft law is accepted without any amendments, the changes to social security law will notably increase employers’ overall employment costs. From a global work perspective, many Turkish employers tend to maintain their outbound employees’ social security levels in the social security ceiling. An increase in the cap will automatically raise these costs by approximately 20%, which should be reflected in their cost projections.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively through the following emails from the Vialto Partners Chile employment immigration team:
Cumhur Dülger
Partner
Erkan Bulut
Senior Consultant
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