Turkey Proposes 10% Tax on Crypto Income in Draft Legislation
Under the proposed law, Turkey’s president would be allowed to change the income tax rate on digital assets from zero to up to 20%.
Turkey’s ruling Justice and Development Party (AKP) has introduced a draft bill that would impose a 10% tax on cryptocurrency income and capital gains. The proposal, reported by the state-run Anadolu Agency, seeks to amend the country’s expenditure tax laws to explicitly include digital assets.
If enacted, the legislation would require cryptocurrency trading platforms subject to existing capital gains tax regulations to withhold 10% tax on user profits and income, with remittance on a quarterly basis. A key provision grants the President of Turkey the authority to adjust this tax rate anywhere between 0% and 20%, providing a mechanism for potential future fiscal policy shifts.
Additionally, the bill introduces a 0.03% transaction tax on services provided by platforms facilitating crypto trades. The Turkish Ministry of Treasury and Finance would be tasked with developing the specific regulations and enforcement mechanisms for the new rules. The law is designed to take effect two months after its official publication, should it pass through the Grand National Assembly.
Context: A Major Crypto Hub Grapples with Economic Pressures
This tax proposal emerges as Turkey stands as a dominant force in regional cryptocurrency activity. According to blockchain analytics firm Chainalysis, from July 2024 to June 2025, Turkey processed approximately $200 billion in crypto transaction volumes, leading the Middle East and North Africa (MENA) region.
This high adoption occurs against a backdrop of severe economic stress. Data from Trading Economics shows inflation in Turkey peaked at a staggering 85% in October 2022. While it has since declined, it remained elevated at around 30% in January 2025.
Chainalysis has noted that Turkey’s crypto story is complex. “It presents one of MENA’s most compelling cryptocurrency stories — its large volumes may be explained by increasingly speculative behavior rather than sustainable adoption,” the firm stated in its October report. “The country’s challenging economic circumstances seem to have driven substantial adoption of crypto for economic necessity, as an alternative financial infrastructure, and as a form of investment to escape financial hardship.”
Part of a Global Trend Toward Crypto Taxation
Turkey is not alone in reevaluating its tax treatment of digital assets. In February, the Dutch House of Representatives advanced a separate proposal to overhaul the Netherlands’ savings and investment tax regime. That plan, which still requires Senate approval, would introduce a flat 36% tax on deemed returns from most liquid investments, including cryptocurrencies. Recent reports suggest the Dutch finance minister is considering amendments to that bill, which could take effect in 2028.
These moves reflect a growing global trend where governments, facing budgetary needs and seeking regulatory clarity, are moving to integrate cryptocurrencies into existing tax frameworks—often after years of ambiguous or favorable treatment.
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