Türkiye’s 20-Year Foreign Income Tax Exemption Is Now Officially in Force
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Türkiye has officially enacted one of its most significant tax reforms in recent years. Following parliamentary approval in May, Law No. 7582 was published in the Official Gazette on June 4, 2026, bringing the country’s new 20-year foreign income tax exemption into force.
The legislation has attracted considerable attention across the investment migration industry because it combines long-term tax incentives with one of the world’s most active Citizenship by Investment programs.
While the proposal generated interest when it was first announced, the latest development is more significant. The framework is no longer a proposal or a parliamentary initiative. It is now law.
For investors, entrepreneurs, and globally mobile families, the question is no longer whether the legislation will be implemented, but how it may influence future investment, relocation, and wealth-planning decisions.
From Parliamentary Approval to Official Law
The Turkish Parliament approved the legislation on May 21, 2026. President Recep Tayyip Erdoğan signed the bill on June 3, and it was subsequently published in the Official Gazette the following day.
The publication officially activates the framework and confirms the government’s intention to attract foreign capital, international talent, and globally mobile investors.
One noteworthy aspect of the legislation is that the foreign income exemption applies to individuals who become Turkish tax residents from January 1, 2026. As a result, eligible individuals who established residency earlier this year may also benefit from the new rules.
This move positions Türkiye among a relatively small group of jurisdictions offering long-term tax incentives designed specifically for internationally active individuals.
Key Provisions Confirmed Under Law No. 7582
The new legislation introduces a broad package of tax and investment-related measures aimed at encouraging relocation, investment, and capital inflows.
20-Year Foreign Income Tax Exemption
- At the center of the law is a 20-year exemption on qualifying foreign-source income and capital gains.
- For eligible residents, foreign income covered under the framework does not need to be reported on Turkish tax returns. The exemption may apply to income earned outside Türkiye, providing long-term planning opportunities for individuals with international business interests, investments, or overseas assets.
- This provision alone is expected to attract significant interest from investors who generate income across multiple jurisdictions.
Reduced Inheritance Tax Treatment
- The legislation also introduces a favorable inheritance tax framework for qualifying beneficiaries.
- Eligible individuals may benefit from a reduced inheritance tax rate of 1% during the exemption period. This is significantly lower than standard inheritance tax rates and may be particularly relevant for families focused on long-term wealth preservation and succession planning.
Asset Declaration and Repatriation Window
- Another notable component of the package is the asset declaration mechanism available until July 31, 2027.
- Under the framework, qualifying individuals may declare certain foreign-held assets, including:
- Cash
- Gold
- Foreign currency
- Securities
- Depending on the holding period and qualifying conditions, reduced rates ranging from 0% to 5% may apply.
- The legislation also provides protections relating to declared assets, making this one of the most discussed elements of the broader reform package.
Incentives for International Businesses
- The law extends beyond individual taxation.
- Qualified service centers may benefit from salary tax exemptions for eligible employees. Additional incentives are also available within approved industrial zones and designated business areas.
- The measures appear designed to encourage companies to establish operations, relocate talent, and expand international business activities from Türkiye.
Expanded Istanbul Finance Centre Benefits
- The legislation also strengthens incentives linked to the Istanbul Finance Centre (IFC).
- Previously focused largely on financial institutions, certain IFC benefits have now been expanded to cover a wider range of participants. In addition, some incentives have reportedly been extended through 2047.
- These changes support Türkiye’s long-term objective of strengthening Istanbul’s position as a regional financial and business hub.
Corporate Tax Incentives
- The package includes additional tax advantages for selected sectors.
- Reduced corporate tax rates are expected to apply to qualifying manufacturing and agricultural activities from the 2027 tax year. Certain qualified service centers and transit-trade operations may also benefit from substantial deductions on eligible foreign earnings.
- Together, these measures illustrate that the legislation is not limited to personal taxation but forms part of a broader economic strategy.
A New Complement to Türkiye Citizenship by Investment
One of the most discussed aspects of the new law is its connection to Türkiye’s Citizenship by Investment Program.
Türkiye currently offers citizenship through a qualifying real estate investment of at least USD 400,000, subject to the program’s requirements.
Historically, investors viewed the program primarily as a route to citizenship, real estate ownership, and greater international flexibility.
The introduction of Law No. 7582 adds a new dimension.
For investors who obtain Turkish citizenship and later establish qualifying Turkish tax residency, the legislation may create a closer link between citizenship, relocation, and long-term tax planning.
This combination has attracted attention because relatively few jurisdictions offer both an established citizenship-by-investment pathway and a long-term foreign income tax exemption within the same framework.
Who Can Qualify?
Qualification is based primarily on prior residency and tax status rather than nationality.
According to the legislation, individuals generally must not have had a Turkish domicile or Turkish tax liability during the previous three calendar years before becoming residents.
The law also includes specific provisions for individuals who may have previously paid tax on certain Turkish-source income, such as rental income, securities income, or capital gains.
As with any tax-related legislation, investors should seek professional advice to understand how the rules apply to their personal circumstances.
Why Industry Experts Are Paying Attention
The publication of Law No. 7582 has generated significant discussion among legal, tax, and investment migration professionals.
Many observers believe the legislation could broaden Türkiye’s appeal beyond traditional citizenship-by-investment applicants.
Rather than being viewed solely as a citizenship destination, Türkiye may increasingly attract individuals looking for a combination of relocation opportunities, wealth preservation strategies, international business access, and long-term tax planning.
The reform also arrives at a time when many globally mobile investors are reassessing where they live, invest, and structure their international affairs.
As a result, the legislation is being closely watched across the investment migration sector.
Looking Ahead
The publication of Law No. 7582 marks an important milestone in Türkiye’s investment and tax policy landscape.
By combining a 20-year foreign income tax exemption with broader business and investment incentives, the country has introduced a framework that is likely to remain a topic of discussion among international investors for years to come.
The practical impact of the legislation will become clearer as implementation guidelines emerge and more investors evaluate the opportunities it presents.
What is already clear, however, is that Türkiye has taken a significant step toward strengthening its position as a destination for investment, relocation, and long-term financial planning.
How UNO Capital Can Assist
At UNO Capital, we help investors and families navigate Citizenship and Residency by Investment opportunities with confidence.
Our team provides guidance on:
- Türkiye Citizenship by Investment
- Real estate investment options
- Residency planning
- Application support
- Document preparation
- End-to-end process management
If you would like to learn more about Türkiye’s latest tax reforms or explore the Türkiye Citizenship by Investment Program, our team would be pleased to assist you. Contact us today!
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