Türkiye adopted a law on tax benefits for foreigners on May 21st, 2026.
Vladlena Baranova, Head of Legal & AML Compliance Department, explains who the new law will affect and which income no longer needs to be declared in Türkiye.
Tax benefits for individuals
Under the new rules, foreign income of new Turkish tax residents is exempt from tax for 20 years. Law No. 7582 was published in the Official Gazette on June 4th, 2026 and has already entered into force[1]Law on tax benefits, Resmî Gazete..
Who can receive the benefits
The tax holiday applies to foreigners who:
- Were not Turkish tax residents in the last 3 years.
- Moved to the country and obtained tax resident status.
If a foreigner previously received income in Türkiye, this does not prevent them from using the new benefits.
Which income is exempt from tax
The exemption applies only to income received outside Türkiye. This may include:
- foreign dividends;
- business income;
- investment income;
- income from assets abroad.
Such income does not need to be included in the annual tax return. If a Turkish resident files a tax return for other reasons, foreign income is also not included in it.
Vladlena Baranova,
Head of Legal & AML Compliance Department, CAMS, IMCM
Income from sources in Türkiye is taxed. The rate depends on the amount of income and ranges from 15 to 40%.
Expenses related to exempt foreign income are not taken into account: they cannot be deducted from taxable income in Türkiye. Taxes paid abroad also cannot be credited against the tax amount.
Inheritance and gift tax reduced to 1%
Türkiye introduced a reduced inheritance and gift tax rate of 1% instead of the standard progressive scale of 1 to 30%.
The benefit applies while the resident uses the 20-year tax holiday. This may be important for wealthy families who choose the country not only for residence, but also for long-term inheritance planning.
Tax benefits for businesses
Reduced corporate tax rates apply to:
- manufacturing companies — 12.5%;
- manufacturing companies that export their own goods — 9%;
- other exporting companies — 11%.
The standard corporate tax rate in Türkiye is 25%.
Exemption from corporate tax on income from transit trade applies to companies registered in the Istanbul Finance Centre[2]Law on the special Istanbul financial centre, Resmî Gazete..
For companies outside the financial centre, the exemption is 95%. Income from the export of financial services by IFC companies is fully exempt from corporate tax until 2047.
Foreign asset amnesty
Individuals and companies will be able to declare money, gold, foreign currency, and securities located outside Türkiye.
Declarations are accepted until July 31st, 2027 through Turkish banks and brokerage companies. After filing a declaration, the assets must be transferred to Türkiye within two months.
The tax rate depends on how long the assets remain in Turkish financial instruments:
- 0% if the assets remain in Türkiye for 5 years;
- 1% if for 4 years;
- 2% if for 3 years;
- 3% if for 2 years;
- 4% if for 1 year.
If the assets are withdrawn earlier, the base rate of 5% applies.
How to become a Turkish tax resident?
A foreigner can obtain a Turkish passport by purchasing real estate worth at least $400,000. The property must be kept in ownership for at least 3 years.
Together with the investor, citizenship is granted to their spouse and children under 18. Before submitting documents, investors undergo a preliminary Due Diligence check, purchase real estate, and obtain a residence permit in Türkiye.
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