Türkiye published Law No. 7582 in the Official Gazette on June 4, 2026, bringing the package President Recep Tayyip Erdoğan proposed in late April into force. Parliament cleared it on May 21, and Erdoğan signed it on June 3.
The centerpiece is a 20-year exemption on foreign-source income for individuals who become Turkish tax residents from January 1, 2026. The measure applies from the publication date, so anyone who became resident since the start of the year already falls within it.
What the Law Grants
- A 20-year exemption shelters income and capital gains from outside Türkiye, which never appear on a Turkish return. Beneficiaries deduct no related expenses and claim no credit for the foreign tax they pay on that income.
- A 1% rate applies to inheritance transfers for exemption beneficiaries, against a progressive schedule that reaches 10%. It covers successions on death within the exemption period; lifetime gifts sit outside it.
- An asset-repatriation window runs through July 31, 2027. Declared cash, gold, foreign currency, and securities draw a 0% to 5% charge with no audit on the declared assets, dropping to 0% for a five-year hold in qualifying instruments and reaching 4% for a one-year commitment.
- Qualified-service-center staff gain a salary tax exemption on wages up to three times the gross minimum wage, or five times in approved industrial zones and the Istanbul Finance Center (IFC).
- IFC relief now reaches all participants, not only financial institutions, and its sunset moves from 2031 to 2047.
- A 12.5% corporate tax rate covers manufacturers and agricultural producers from the 2027 tax year. Qualified service centers and transit-trade operations gain a 95% to 100% deduction on qualifying foreign earnings.
A Complement to the Passport
The exemption complements Türkiye’s citizenship by investment (CBI) program. Naturalize through the US$400,000 real estate route, relocate to become a tax resident, and the 20-year shelter on foreign income follows.
Qualification turns on one test: No Turkish domicile or tax liability in the three calendar years before becoming resident. The law then adds a carve-out: Anyone who paid Turkish tax on local rental income, securities income, or capital gains before relocating still qualifies.
How the Market Is Reading It
“Türkiye is now one of the very few places where the passport and the tax break sit in the same hand,” said Arda Şardağ of Sardag Law Firm.
“An investor can naturalize in a matter of months through the citizenship route and then shelter foreign-sourced income for 20 years,” he said. That window beats “almost any non-dom regime in Europe, where the equivalent typically runs 10 to 15 years.”
The amnesty is the other half of the same move. An incoming individual, he said, can move “previously undeclared cash, gold, or securities into the Turkish system at a 0% to 5% rate with no audit on the declared assets.”
He calls it “a clean-slate mechanism that pairs naturally with the new exemption.” Clients are already moving.
“We’re already getting calls from clients who used to keep citizenship and tax residency deliberately apart,” Şardağ said. “Law No. 7582 is the first time the two decisions actually point in the same direction.”
Güvenç Ketenci of Ketenci & Ketenci sees demand already shifting. Interest has “increased substantially among globally mobile investors who are seeking both a second citizenship and a credible long-term wealth preservation strategy,” he said.
The reform could move Türkiye “from a purely citizenship-by-investment jurisdiction into a broader investment migration, relocation, and international wealth planning hub,” in his view. Alongside the existing program, the tax framework forms “one of the most compelling value propositions currently available,” he said.
He also points to “Türkiye’s position as a major regional economic and geopolitical power connecting Europe, the Middle East, Central Asia, and Africa.” That, he said, strengthens the country’s pull “not only as a citizenship destination, but also as a long-term hub for international investors, entrepreneurs, and globally mobile families.”
Aran Hawker of CIP Turkey calls it “as aggressive a move as it gets.” He reads it first as repatriation.
“It’s a targeted move primarily, as I see it, to bring back home Turkish assets, business, and talent,” he said. Turks rank “consistently in the top three investors globally” in sectors like investment migration and Dubai property.
“Imagine the volume, talent, and money this can bring back home,” Hawker said. The salary break for internationally experienced staff is the provision he flags first.
He frames it as a loss for others. The reduced income tax for employees who worked abroad for five or 10 years is “a potential brain drain that will hit some other countries hard, like Germany.”
His own firm is acting on it. CIP Turkey will “personally relocate more than one company to Türkiye,” he said, since its investment migration arm earns “100% income generated from abroad,” with the technology side set to “benefit substantially” too.
For foreign investors, he sees “the green light they needed,” and expects the small share of CBI holders who actually relocated to climb sharply. He calls the package, for new investors, “the most attractive incentives in a well-thought-out plan to push the country to the next level.”
Serhan Aysever, Managing Partner at Beyond Global Partners, says that “this is one of the most interesting and positive developments we’ve seen in the investment migration space in recent years. While many established destinations continue to tighten tax regimes and reduce predictability for internationally mobile wealth, Türkiye is doing the opposite, and doing it at exactly the right time.”
He argues that “in practical terms, it offers long-term relief on foreign income and more attractive inheritance tax treatment, creating a framework that is genuinely competitive for HNWIs, entrepreneurs, and globally mobile families. But the real story is positioning: in a period of geopolitical uncertainty and regulatory tightening elsewhere, Türkiye is actively stepping forward as an alternative for residence and wealth planning.”
He says timing matters. He notes that this “puts Türkiye in a strong position to attract attention from families and advisers who are increasingly looking for stability, security, optionality, and jurisdictional diversification. If implemented with clarity and consistency, this could mark a meaningful shift in where international private clients choose to base themselves and structure their wealth.”
The relief keys off overseas experience and prior non-residence, not nationality. It reaches returning Turkish professionals and incoming foreigners alike.
The foreign-income exemption took effect on publication for anyone resident since January 1, 2026. The reduced production-tax rate will take effect in 2027, and the Ministry of Treasury and Finance will set the implementing procedure.
