# Turkey Approves 20-Year Foreign Income Tax Exemption for New Residents

Source: https://www.savoryandpartners.com/news/turkey-foreign-income-tax-exemption · Published: 2026-06-01 · Updated: 2026-06-01

Turkey has approved a 20-year tax exemption on qualifying foreign-source income for new residents, alongside new asset and corporate tax incentives.

Author: [object Object]

Turkey’s Grand National Assembly has passed a new fiscal package that includes a 20-year exemption from Turkish income tax on qualifying foreign-source income for eligible new residents.

The law, proposed by President Recep Tayyip Erdogan, now awaits presidential promulgation and publication in the Official Gazette.

## Who Can Qualify?

The exemption applies to individuals who had no Turkish domicile and no Turkish tax liability during the three calendar years before relocating to Turkey.

Qualifying foreign-source income will not need to be declared in annual Turkish tax returns. Income earned inside Turkey will still be taxed under standard progressive rates of 15% to 40%.

The package also reduces inheritance and gift tax for qualifying individuals to a flat 1%, replacing Turkey’s standard graduated rates of 1% to 30%.

## Asset Amnesty and Corporate Incentives

The law also introduces a new asset declaration programme for individuals and companies holding assets abroad, including cash, gold, foreign currency, and securities.

Declarations must be filed by July 31, 2027, and foreign assets must be transferred to Turkey within two months.

Turkey has also approved corporate tax reductions for manufacturers and exporters, while expanding tax incentives linked to the Istanbul Finance Centre.

## What This Means for Investors

The new framework strengthens Turkey’s position as a jurisdiction competing for internationally mobile capital, high-net-worth individuals, and businesses seeking tax-efficient regional access.

For investors considering relocation, wealth structuring, or residency planning, Turkey’s new tax regime may become an important development to monitor.