Türkiye has brought into force a new 20-year foreign-income tax exemption for qualifying new tax residents, creating a major tax incentive for investors, returning professionals, entrepreneurs, and globally mobile families who relocate to the country.
Law No. 7582 was published in the Official Gazette on June 4, 2026. Parliament cleared the law on May 21, and President Recep Tayyip Erdoğan signed it on June 3.
The exemption applies to individuals who become Turkish tax residents from January 1, 2026. Because the measure applies from the publication date, anyone who became resident since the start of 2026 already falls within its scope.
What The New Law Provides
The main measure is a 20-year exemption on foreign-source income for qualifying new residents.
Under the exemption:
- foreign income and capital gains are sheltered from Turkish taxation
- the exempt income does not appear on a Turkish tax return
- beneficiaries cannot deduct related expenses
- beneficiaries cannot claim credit for foreign tax paid on that income
The law also introduces a 1% inheritance tax rate for exemption beneficiaries. This applies to inheritances on death during the exemption period. It does not apply to lifetime gifts.
The 1% rate compares with Türkiye’s progressive inheritance tax schedule, which reaches 10%.
Asset Repatriation Window
The law includes an asset-repatriation window running until July 31, 2027.
Declared assets may include:
- cash
- gold
- foreign currency
- securities
The charge ranges from 0% to 5%, with no audit on the declared assets.
The charge can fall to 0% if the assets are held for five years in qualifying instruments. A one-year commitment results in a 4% charge.
The repatriation measure is designed to allow incoming individuals to move previously undeclared assets into the Turkish system under defined tax terms.
Salary And Corporate Tax Measures
The law also includes targeted relief for employees and companies.
Qualified-service-center staff receive a salary tax exemption on wages up to:
- three times the gross minimum wage
- five times the gross minimum wage in approved industrial zones and the Istanbul Finance Center
Relief connected to the Istanbul Finance Center now applies to all participants, not only financial institutions. Its sunset date has been moved from 2031 to 2047.
From the 2027 tax year, manufacturers and agricultural producers will be subject to a 12.5% corporate tax rate.
Qualified service centers and transit-trade operations receive a 95% to 100% deduction on qualifying foreign earnings.
Link With Türkiye Citizenship By Investment
The tax exemption complements Türkiye’s citizenship by investment program.
A foreign investor may naturalize through the US$400,000 real estate route, relocate to Türkiye, become a Turkish tax resident, and benefit from the 20-year foreign-income exemption.
The qualification test is based on prior residence and tax status.
To qualify, the individual must have had:
- no Turkish domicile in the three calendar years before becoming resident
- no Turkish tax liability in the three calendar years before becoming resident
The law includes an exception. Individuals who previously paid Turkish tax on local rental income, securities income, or capital gains before relocating may still qualify.
The relief is based on overseas experience and prior non-residence, not nationality. It can apply both to returning Turkish professionals and incoming foreign residents.
Market Reaction
The reform is being read as a major shift in Türkiye’s investment migration and relocation offer.
One interpretation is that Türkiye now combines a second passport route with a long-term foreign-income tax shelter. The 20-year period is longer than many European non-dom regimes, which are described as typically lasting 10 to 15 years.
The asset-repatriation measure is also seen as an important part of the package because it allows declared cash, gold, or securities to enter the Turkish system at a 0% to 5% rate, with no audit on the declared assets.
Market participants quoted in the article say demand has already increased among globally mobile investors seeking both second citizenship and long-term wealth planning options.
The reform could shift Türkiye from being viewed mainly as a citizenship-by-investment jurisdiction toward a broader relocation, investment migration, and international wealth planning hub.
Türkiye’s geographic and economic position is also highlighted as part of the appeal, with the country connecting Europe, the Middle East, Central Asia, and Africa.
Returning Turkish Talent And Foreign Investors
The law is also framed as a repatriation measure aimed at bringing Turkish assets, business, and talent back into the country.
The salary tax break for internationally experienced staff is identified as a notable provision. The reduced income tax for employees who worked abroad for five or 10 years may encourage professionals to relocate to Türkiye from other countries.
The package may also encourage more citizenship-by-investment holders to actually relocate to Türkiye, rather than only obtaining the passport.
For foreign investors, the reform creates a clearer link between citizenship, relocation, and tax planning.
Effective Dates
The foreign-income exemption took effect on publication and applies to anyone who became Turkish tax resident from January 1, 2026.
The reduced corporate tax rate for manufacturers and agricultural producers takes effect from the 2027 tax year.
The Ministry of Treasury and Finance will set the implementing procedure.
Source article: www.imidaily.com
