Turkey’s President R E R O Ğ A N announced a two‑part tax and asset‑repatriation package aimed at attracting high‑net‑worth individuals who are globally mobile. The measures are still proposals and must still be approved by parliament.
Key elements of the proposal
- 20‑year foreign‑income exemption – Applies to new residents who have not been tax residents of Turkey for at least the previous three years. Under the scheme, overseas dividends, capital gains, rental income and business profits would be excluded from Turkish taxation; only income sourced in Turkey would be taxed.
- Inheritance tax – Set at a flat 1 % for qualifying residents.
- One‑time asset amnesty – Allows the repatriation of offshore cash, gold and securities at a reduced flat rate, with no source‑of‑funds inquiry and no risk of retroactive audit.
Both components are expected to be presented to parliament within weeks but have not yet become law.
How the plan compares with existing regimes
| Jurisdiction | Duration of foreign‑income exemption | Notable features |
|---|---|---|
| Turkey (proposed) | 20 years | No annual fee; inheritance tax 1 % |
| Portugal – NHR | 10 years | Limited to a decade |
| UK – non‑dom | Abolished in 2025 | Previously offered similar protection |
| Italy – flat‑tax | Ongoing | Requires an annual fee |
The longer exemption period makes Turkey’s proposal distinct, especially as other European programs have either shortened, been abolished, or added ongoing costs.
Additional incentives
Turkey’s existing Citizenship‑by‑Investment (CBI) program grants naturalization in roughly four to six months. The Turkish passport provides visa‑free travel to more than 110 destinations and reflects Turkey’s status as an EU candidate country, adding long‑term flexibility for investors.
Considerations for potential investors
- Legislative uncertainty – Because the measures are still proposals, the final terms could be altered, delayed, or withdrawn during parliamentary review.
- Eligibility threshold – Applicants must have been non‑tax‑residents of Turkey for at least three years, targeting genuinely mobile capital rather than returning nationals.
- Historical precedent – The 2018 launch of Turkey’s CBI program saw early participants benefit from lower thresholds; later entrants faced higher costs and stricter requirements. Similar tightening can occur when demand surges.
- Comparative timing – With Portugal’s NHR limited to ten years and the UK’s non‑dom status ending, Turkey’s longer window may be attractive for families seeking a stable, long‑term tax environment.
Practical steps
- Assess residency eligibility – Verify the three‑year non‑resident condition and determine which of your income streams would remain taxable in Turkey.
- Model tax outcomes – Compare the projected Turkish tax liability (only Turkish‑sourced income plus 1 % inheritance tax) against current jurisdictions.
- Monitor legislative progress – Track parliamentary debates and any amendments to the proposed measures before committing resources.
- Integrate with broader mobility strategy – Consider how Turkey’s tax regime and CBI program fit alongside other residency or citizenship options to balance visa‑free access, tax efficiency, processing speed, and long‑term security.
The announcement signals Turkey’s intent to compete for globally mobile capital, but investors should treat the proposals as a strategic direction rather than a finalized policy.
Source article: www.artoncapital.com
