Bosnia and Herzegovina vs Turkey
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ง๐ฆ Bosnia and Herzegovina โ Entity & Cantonal Taxes
Bosnia and Herzegovina has one of the most fragmented tax systems in the world due to its Dayton Agreement structure. The two entities โ Federation of BiH (FBiH) and Republika Srpska (RS) โ have separate income tax, and FBiH further divides into 10 cantons that set their own rates. RS has a flat 10% income tax. FBiH has a 10% flat tax at the entity level but cantons add surtaxes of 0%โ30% of the income tax. Brcko District has its own tax administration. VAT and customs are administered federally.
๐น๐ท Turkey โ Municipal & Special Provincial Taxes
Turkey's 81 provinces and 1,389 municipalities levy Real Estate Tax (Emlak Vergisi) at 0.1%โ0.6% of assessed value (doubled in metro areas). Municipalities levy Environmental Cleansing Tax (รงevre temizlik vergisi) and Advertisement Tax. The Communication Tax and BSMV (banking and insurance transactions tax) are national. Municipalities receive shares of central tax revenues. High inflation has significantly eroded real tax burden but required frequent bracket adjustments.
Bosnia and Herzegovina vs Turkey: Key Tax Differences (2026)
๐ฐ Income Tax: ๐น๐ท Turkey has a higher top income tax rate (10โ13% vs 15โ40%). ๐ง๐ฆ Bosnia and Herzegovina is more favourable for high earners.
๐ VAT/Sales Tax: Turkey has a higher consumption tax (17% vs 1โ20%).
๐ข Corporate Tax: ๐ง๐ฆ Bosnia and Herzegovina offers a lower corporate rate (10% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ฆ Bosnia and Herzegovina taxes investment gains at a lower rate (10% vs 40%), benefiting investors.