If you're moving to Turkmenistan, here's how taxes work
Turkmenistan's tax system has some unique features that can work in your favour — or against you. Here's what to expect.
Tax System Overview
| Tax Component | Rate / Details |
|---|---|
| Tax System Type | Progressive |
| Top Personal Income Tax Rate | 10% |
| Effective Rate on €90,000 | 14% |
| Net Monthly on €90,000 Gross | €5,733 |
| VAT (Standard Rate) | 15.0% |
| Special Expat Regime | No special tax regime for expats |
Income Tax in Turkmenistan
Turkmenistan operates a progressive income tax system, meaning higher earners pay a higher percentage on their income above certain thresholds. The top marginal rate is 10%.
What Does This Mean in Practice?
On a gross annual salary of €90,000, you would pay an effective tax rate of approximately 14%, resulting in a net monthly income of approximately €5,733. This accounts for income tax and mandatory social contributions.
For context, the average monthly salary in Turkmenistan is approximately €350.
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VAT (Value Added Tax)
The standard VAT rate in Turkmenistan is 15.0%. VAT is included in consumer prices and applies to most goods and services. Reduced rates typically apply to:
- Basic food items and groceries
- Medical supplies and pharmaceuticals
- Books and educational materials
- Public transport (in some cases)
Special Tax Regimes for Expats
No special tax regime for expats
While Turkmenistan may not have a widely publicised expat tax regime, there may be bilateral tax treaties with your home country that prevent double taxation. Check if a Double Taxation Agreement (DTA) exists.
Tax Filing Requirements
As a tax resident of Turkmenistan, you are generally required to:
- Register with tax authorities upon establishing residence
- Obtain a tax identification number
- File an annual tax return (deadlines vary)
- Declare worldwide income if you are a tax resident
- Report foreign bank accounts if applicable
Double Taxation
Turkmenistan has double taxation agreements (DTAs) with numerous countries. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same income. Before moving, check whether a DTA exists between Turkmenistan and your home country.
Tax Tips for Expats
- Hire a local tax adviser familiar with expat situations during your first year
- Keep records of all income, deductions, and tax payments from day one
- Understand residency rules: most countries consider you a tax resident after 183 days
- Check for exit tax: some countries impose tax on unrealised gains when you leave
- Social security contributions are often separate from income tax and can add 10-20% to your total burden
Frequently Asked Questions
When does tax residency start in Turkmenistan?
In most cases, you become a tax resident in Turkmenistan after spending 183 days or more in a calendar year. Some countries also consider your centre of vital interests (family, property, economic ties). Tax residency triggers worldwide income taxation in many jurisdictions.
What is the income tax rate in Turkmenistan?
Turkmenistan uses a progressive tax system. The top personal income tax rate is 10%. On a gross income of €90,000, the effective tax rate is approximately 14%, leaving a net monthly income of approximately €5,733.
How does property tax work in Turkmenistan?
Property tax in Turkmenistan is typically levied annually based on the assessed value of real estate. Rates vary by municipality. As a property owner, you may also face wealth tax or land tax depending on Turkmenistan's specific rules.
Is freelance income taxed differently in Turkmenistan?
Freelancers in Turkmenistan are typically treated as self-employed and must pay both income tax and self-employed social security contributions. The progressive tax system applies. The effective rate on €90k is 14%. Quarterly estimated tax payments are usually required.
What happens to my pension contributions in Turkmenistan?
If you leave Turkmenistan, your pension rights depend on bilateral social security agreements. EU/EEA countries have portable pension rights. Outside the EU, check if an agreement exists with your home country. Private pension withdrawals may be taxable.
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