Germany has one of the world's highest employer+employee social security burdens — approximately 40% combined (health, pension, unemployment, care). Germany's income tax tops at 45% plus a 5.5% solidarity surcharge. Turkey's income tax tops at 40% but has a significantly lower social security burden (~34.5% employer + 15% employee, though caps apply). For Turkish workers in Germany, Germany's higher wages largely offset the higher tax burden. Remittances from Germany to Turkey (EUR to TRY) have been affected dramatically by Turkish lira depreciation — which is a financial planning consideration for Turkish diaspora.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🇹🇷 Turkey

15–40%

Progressive GİB Tax, TRY 110,000 threshold

Turkey taxes residents on worldwide income at progressive rates 15–40% (administered by GİB — Gelir İdaresi Başkanlığı). Top rate 40% applies above TRY 4.3 million (~€130K at current rates). Employee social security: ~15% (pension 9% + health 5% + unemployment 1%). Employer contribution: ~20.5%. Social security contributions have a wage ceiling. Capital gains: 0–40% depending on asset type and holding period.

🇩🇪 Germany

14–45% + solidarity

Progressive Finanzamt Tax, Basic Allowance €11,604

Germany taxes residents on worldwide income at progressive rates 14–45% (Einkommensteuer). Solidarity surcharge (Solidaritätszuschlag 5.5%) now only applies above ~€73K single income. Employee social contributions: health 7.3% + pension 9.3% + unemployment 1.3% + care insurance 1.7% = ~19.6% employee; employer matches approximately. Church tax 8–9% of income tax applies unless formally opted out. Capital gains on investments: 25% flat (Abgeltungsteuer).

Typical Annual Savings

At €70,000 gross income:

Germany ~8–12% higher combined burden at equivalent income

A software engineer earning €70,000 gross in Germany takes home approximately €42,000 net after income tax (~€8,000) and employee social contributions (~€14,000) — around 60% net. In Turkey, the same nominal income has ~71% take-home due to lower social charges — but Turkish professional salaries are significantly lower than German equivalents, making German wages compelling despite higher tax burden.

Tax Savings by Income Level

IncomeTR TaxDE TaxSavings10-Year
€30,000 ~27% combined (income + social)~35% combined (income + social)Germany 8% higherGerman public pension builds meaningful retirement credit
€60,000 ~34% combined~43% combinedGermany 9% higherGerman healthcare included in contributions
€100,000 ~40% combined~49% combinedGermany 9% higherSolidarity surcharge phase-out reduces Germany gap slightly
€200,000 ~43% combined~55% combinedGermany 12% higherGerman top bracket most costly
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EUR/TRY Transfers

Wise

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Cross-Border Employment

Deel

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Turkish workers or employers managing cross-border employment between Turkey and Germany — Deel handles compliance, payroll, and contractor management across both jurisdictions.

⚠ For employers and companies only — not for individual freelancers or employees.

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Turkey Pros and Cons

✅ Pros

  • Lower combined income + social security burden than Germany for most income levels
  • No solidarity surcharge equivalent
  • Significant social security caps limit contributions for higher earners
  • Lower cost of living means EUR savings stretch further in Turkey
  • Turkey's lira depreciation has made EUR/USD remittances very valuable for recipients

❌ Cons

  • Significantly lower nominal wages than Germany — 5–10x gap for most professional roles
  • Turkish lira inflation and volatility creates income planning uncertainty
  • Less comprehensive social benefits (healthcare, unemployment, pension) than Germany
  • Access to German pension contributions is recoverable under the German-Turkish social security agreement
  • Turkish tax authority (GİB) has complex compliance requirements for international income

Germany Pros and Cons

✅ Pros

  • Very high nominal wages — German professional salaries among the highest in Europe
  • Comprehensive social benefits: statutory health insurance covers family members
  • German public pension (Deutsche Rentenversicherung) is substantial and portable under EU agreements
  • Employment protection and labor rights are very strong
  • Germany-Turkey social security agreement allows pension contribution portability

❌ Cons

  • Combined income tax + social contributions can reach 50-55% for higher earners
  • Solidarity surcharge (Solidaritätszuschlag) now only applies to highest earners (threshold raised 2021) but still applies above ~€73K single
  • German Finanzamt (tax authority) compliance is complex; German tax returns are mandatory for most residents
  • Kirchensteuer (church tax 8-9% of income tax) applies unless formally opted out — many Turkish residents are exempt but must confirm
  • Health insurance contributions are mandatory and tied to wage: employee pays 7.3% of gross salary

Frequently Asked Questions

Q: Do Turkish workers in Germany pay taxes in both Turkey and Germany?

Germany and Turkey have a Double Taxation Agreement (DTA). Turkish nationals who are German tax residents (domicile or habitual abode in Germany) are taxed in Germany on worldwide income. Turkey generally taxes its citizens on Turkey-source income. The DTA prevents double taxation: German-resident Turks typically do not owe Turkish income tax on German wages. However, if they have Turkey-source income (rental property, business income, investments in Turkey), Turkey taxes that income and the DTA provides relief mechanisms.

Q: Can Turkish workers in Germany claim back pension contributions if they return to Turkey?

Germany and Turkey have a bilateral social security agreement. Turkish workers who return to Turkey permanently (and are not German citizens or EU citizens) may be eligible to receive a refund of German pension contributions after a waiting period (typically after 24 months of departure from Germany, if they will not reach German pension age and are not entitled to a German pension). The refund is only the employee-side contributions, not the employer side. The German pension agency (Deutsche Rentenversicherung) handles these claims.

Q: How does Turkey's lira depreciation affect Turkish workers sending remittances from Germany?

The Turkish lira has lost substantial value against the EUR since 2018. For Turkish workers in Germany sending EUR to Turkey: the same EUR amount buys significantly more TRY than it did 5–10 years ago. This makes German wages very valuable for Turkish families receiving remittances. However, for Turkish workers saving in Turkey (holding TRY-denominated assets), the depreciation erodes purchasing power. The optimal strategy for Turkish workers in Germany: save in EUR in Germany, minimize TRY exposure unless buying Turkish real estate for near-term use.

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