Last updated: 13.09.2026
This document is published in Turkish. In case of any discrepancy, the Turkish text prevails.
Taxes and funds on your policy
Besides the insurer's net premium, policies show statutory taxes and funds separately. The total you pay is the net premium plus these items.
Main items
- Banking and Insurance Transactions Tax (BSMV): 5% under Expenditure Taxes Law no. 6802. Life, health, compulsory earthquake (DASK) and agricultural insurance, among others, are exempt.
- Fire Insurance Tax: 10% on fire cover for property within municipal boundaries, under Municipal Revenues Law no. 2464.
- Guarantee Account contribution: 2% of net premium for compulsory insurance and 0.5% for Green Card insurance (Insurance Law no. 5684, Article 14).
- Traffic Services Development Fund: 5% of compulsory motor liability premiums, under Road Traffic Law no. 2918.
- VAT and stamp duty: insurance transactions are exempt.
Income tax deduction for personal insurance
- The policy must be with an insurer or pension company resident and headquartered in Türkiye, covering you, your spouse or minor children.
- Premiums for death, accident, illness, health, disability, maternity, birth and education cover are fully deductible; for savings-type life policies, 50% of premiums.
- Employees: total deduction may not exceed 15% of the monthly wage and, annually, the annual minimum wage.
- Taxpayers filing a return: deduction is limited to 15% of declared income and the annual minimum wage; any unused part cannot be carried forward.
- Private pension contributions are not deductible under this rule.
Note
Rates may change with legislation; please refer to the current legislation for up-to-date rates. This page is general information and not tax advice.