Turkey Continues to Improve Its Attractiveness for International Investors and Expats with the tax Accommodation
Turkey remains one of the most dynamic destinations for international investment, expatriation, tourism, and business expansion. In line with its broader economic strategy to attract foreign capital and stimulate economic activity, the Turkish government has introduced a significant temporary reduction in the Turkey accommodation tax.
Published in the Official Gazette dated May 1, 2026, and numbered 33240, Presidential Decree No. 11263 reduces the Turkey accommodation tax rate from 2% to 1% for the period running from May 1, 2026, to December 31, 2026.
This measure is expected to support Turkey’s tourism sector while enhancing the country’s competitiveness as a destination for travelers, digital nomads, expatriates, and international investors.
What Is the Turkey Accommodation Tax?
The Turkey accommodation tax was introduced under Article 34 of Expenditure Taxes Law No. 6802.
The tax applies to overnight accommodation services provided by various hospitality establishments across Turkey, including:
- Hotels;
- Motels;
- Holiday villages;
- Pensions;
- Apart hotels;
- Guesthouses;
- Campsites;
- Mountain lodges;
- Plateau houses.
The Turkey accommodation tax also covers many additional services when sold together with accommodation, including:
- Food and beverage services;
- Entertainment activities;
- Recreational services;
- Swimming pools;
- Sports facilities;
- Thermal facilities;
- Other hospitality-related services.
Turkey Accommodation Tax Rate Reduced to 1%
One of the most important developments for the tourism industry in 2026 is the temporary reduction of the Turkey accommodation tax rate.
Under Presidential Decree No. 11263, the rate has been reduced from 2% to 1% between May 1, 2026, and December 31, 2026.
This reduction lowers the tax burden associated with accommodation services and may contribute to:
- Increased tourism demand;
- Higher hotel occupancy rates;
- Greater competitiveness for Turkish hospitality businesses;
- Improved attractiveness for international visitors;
- Additional opportunities for tourism investors.
How Is the Turkey Accommodation Tax Calculated?
The taxable base of the Turkey accommodation tax consists of the total amount charged or accrued for taxable services, excluding VAT.
The tax base includes all forms of consideration received in exchange for accommodation services, whether paid through:
- Cash payments;
- Goods;
- Benefits;
- Services;
- Any other value that can be expressed in monetary terms.
For hospitality operators, understanding the calculation of the Turkey accommodation tax remains essential for maintaining compliance and accurate financial reporting.
Why This Matters for Foreign Investors and Hospitality Businesses
The reduction of the Turkey accommodation tax arrives at a time when Turkey is actively seeking to attract greater foreign investment and international business activity.
For hotel owners, tourism operators, real estate investors, and hospitality groups, the temporary reduction may improve profitability and strengthen market competitiveness.
Combined with Turkey’s strategic location between Europe, Asia, and the Middle East, the lower Turkey accommodation tax rate reinforces the country’s position as one of the most attractive tourism markets in the region.
Turkey 2026: A Business-Friendly Environment
The reduction of the Turkey accommodation tax forms part of a broader trend aimed at improving Turkey’s attractiveness for:
- International investors;
- Tourism operators;
- Expatriates;
- Entrepreneurs;
- Foreign companies establishing operations in Turkey.
As Turkey continues implementing reforms designed to attract international capital and economic activity, measures such as the reduction of the Turkey accommodation tax rate send a positive signal to global markets.
The temporary reduction of the Turkey accommodation tax from 2% to 1% until December 31, 2026, represents an important development for Turkey’s tourism and hospitality sectors.
For investors, hotel operators, expatriates, and international businesses, this measure further strengthens Turkey’s appeal as a destination for investment, relocation, and commercial expansion.
Companies and investors planning projects in Turkey should closely monitor ongoing regulatory developments to fully benefit from the opportunities emerging in the Turkish market.
