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- Foreign-source income is exempt from Turkish income tax for 20 years.
- Applies to individuals settled in Türkiye from 1 January 2026 with no Turkish residence or tax liability in the prior 3 calendar years.
- No annual return for exempt income; inheritance tax is 1% during the exemption period.
- Bringing your own savings and assets to Türkiye is not taxed – no declaration or payment is needed for the exemption.
On 4 June 2026 Türkiye introduced one of the most generous relocation regimes in Europe and the Middle East. Under the new Article 20/D of the Income Tax Law, individuals who become Turkish tax residents can keep their income earned outside Türkiye free of Turkish income tax for twenty years – provided they had no Turkish residence and no Turkish tax liability in the previous three calendar years.
⬇ Download the briefing (PDF)Who qualifies
- Individuals only. The exemption applies to natural persons; companies cannot use it.
- Any nationality. The test is residence, not citizenship. Foreign nationals and returning Turkish citizens can both qualify.
- New residents from 1 January 2026. It applies to people who are treated as settled in Türkiye on or after 1 January 2026.
- Three-year break. In the three calendar years before settling, the person must have had neither a Turkish domicile nor a Turkish tax liability.
- Exception for passive Turkish income. Having been taxed in Türkiye only on rental income, investment income or capital gains does not disqualify the person.
When are you a Turkish tax resident? Under Article 4 of the Income Tax Law, a person is treated as settled in Türkiye if their legal domicile is in Türkiye, or if they stay in Türkiye for more than six months in a calendar year (temporary departures do not interrupt the stay). Turkish citizenship on its own does not make anyone a tax resident.
What is exempt – and what is not
| Income | Treatment |
|---|---|
| Rental income from property abroad | Exempt for 20 years |
| Dividends from foreign companies | Exempt for 20 years |
| Other income earned outside Türkiye | Exempt, under the general rules of the Income Tax Law |
| Income earned in Türkiye (salary, rent, business income) | Taxed under normal Turkish rules |
| Turkish real estate and venture capital fund units held > 2 years | 0% withholding under current rules (Presidential Decree 11107) |
The exempt income does not have to be reported on a Turkish return, and it is not added to the return if one is filed for other income.
How the exemption works in practice
- Settle in Türkiye. Establish domicile or stay more than six months in a calendar year.
- Apply to the tax office. Obtain the Exemption Certificate for Income Earned Abroad (Annex 1 of the implementing communiqué) by the end of the year of settlement – or by the end of February of the following year if you settled in November or December.
- Enjoy 20 years. The 20-year period starts on the date you are treated as settled in Türkiye.
- Keep records. Keep evidence of your foreign income and of your non-residence in the three prior years.
Conditions to keep in mind
- Expenses relating to exempt foreign income cannot be deducted from taxable Turkish income.
- Taxes paid abroad on exempt income cannot be credited against Turkish income tax.
- If it later turns out that the conditions were not met, the unassessed tax is collected with late-payment interest and a tax-loss penalty.
- The Ministry of Treasury and Finance sets the detailed procedures; implementing communiqués were published on 4 July 2026.
Inheritance tax: 1% during the exemption period
For people benefiting from the 20-year exemption, assets passing by inheritance during the exemption period are taxed at a flat 1% rate (Article 16 of the Inheritance and Gift Tax Law, as amended). Under the general regime, inheritance tax rates are progressive and considerably higher – a strong argument for families planning succession.
Where FT Portföy fits
- A regulated home for your Turkish investments. FT Portföy is an Istanbul-based portfolio management company licensed and supervised by the Capital Markets Board of Türkiye (CMB), managing real estate (GYF) and venture capital (GSYF) funds.
- Bring your capital freely. Transferring your own savings and assets to Türkiye is not a taxable event, and the exemption requires no declaration or payment. We can help you structure your investment in our CMB-regulated funds.
- Citizenship and residence together. Investors who obtain Turkish citizenship through a USD 500,000 fund investment and then move to Türkiye can combine the new passport with 20 years of exemption on their foreign income.
- Trusted partners. We work with experienced tax advisers and lawyers to plan your move, the exemption certificate and your fund investment.
Example: An entrepreneur based in Dubai, with rental income from London and dividends from a company in Singapore, moves to Istanbul in September 2026. After three years with no Turkish residence or tax liability, she qualifies. She obtains the exemption certificate by 31 December 2026. Her London rent and Singapore dividends remain outside Turkish income tax until September 2046, and her family's inheritance tax rate on assets passing during that period is 1%. Her investment in a Turkish real estate fund, held for more than two years, is subject to 0% withholding under current rules.
Frequently asked questions
What is Türkiye's 20-year tax exemption on foreign income?
Under Article 20/D of the Turkish Income Tax Law, added by Law No. 7582 (Official Gazette 4 June 2026), individuals who become Turkish tax residents can keep income earned outside Türkiye free of Turkish income tax for 20 years, provided they had no Turkish residence and no Turkish tax liability in the previous three calendar years.
Who can benefit from the exemption?
Individuals of any nationality – including returning Turkish citizens – who are treated as settled in Türkiye on or after 1 January 2026 and who had neither a Turkish domicile nor a Turkish tax liability in the three prior calendar years. Previous Turkish tax liability only on rental income, investment income or capital gains does not disqualify. Companies cannot use the exemption.
Does Turkish citizenship by investment give me the tax exemption?
No. The exemption is based on tax residence, not citizenship. You must settle in Türkiye – establish domicile or stay more than six months in a calendar year. Investors who obtain citizenship through a USD 500,000 fund investment and then move to Türkiye can combine both.
How do I apply?
Apply to your tax office for the Exemption Certificate for Income Earned Abroad by the end of the year in which you settle in Türkiye (or by the end of February of the following year if you settled in November or December). No annual return is filed for the exempt foreign income.
Is Turkish-source income also exempt?
No. Income earned in Türkiye – salary, rent, business income – is taxed under the normal rules. Under current rules, units of Turkish real estate and venture capital funds held for more than two years are subject to 0% withholding.
What other benefits does Law No. 7582 bring for new residents?
People using the exemption pay only 1% inheritance tax on assets passing by inheritance during the exemption period. New residents can also transfer their own savings and assets to Türkiye without any tax – no declaration or payment is required.
Serkan Topaktaş
Chairman of FT Portföy, a CMB-licensed portfolio management company in Istanbul specialising in real estate and venture capital funds.
Related guides
Turkish citizenship by investment – FAQ →Tax benefits of venture capital funds in Türkiye →Tax optimisation with investment funds →Fund vs. buying property for citizenship →This briefing is a general summary of Law No. 7582 (Official Gazette No. 33270, 4 June 2026) and its implementing communiqués as of October 2026. It is not tax, legal or investment advice. The application of the exemption depends on individual circumstances and on the procedures set by the Ministry of Treasury and Finance; please consult a qualified tax adviser before acting. Fund investments carry risk; past performance does not indicate future results. FT Gayrimenkul ve Girişim Sermayesi Portföy Yönetimi A.Ş. – CMB Activity Authorisation Certificate GGSPYŞ/PY.10/420.