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Important Note: This legal analysis is based on publicly announced details of the incentive package introduced on 24 April 2026, which is currently still going through the legislative process in the Grand National Assembly of Turkey (TBMM). The final text of the legislation and its implementing regulations may change before enactment.
The “Turkey’s Century — Strong Center for Investment” Programme, unveiled at the Presidential Dolmabahçe Working Office, has been presented as a comprehensive reform package aimed at fundamentally transforming Turkey’s investment climate. The most striking measure in the package is a proposed 20-year income tax exemption for individuals relocating to Turkey from abroad.
This article examines the package from three distinct perspectives: overseas Turkish nationals (diaspora), foreign professionals and entrepreneurs, and exporting companies and institutional investors.
1. The 20-Year Tax Shield for Individuals
Who is eligible?
Under the draft regulation, individuals who have not been registered as taxpayers in Turkey for the three calendar years immediately preceding their relocation would qualify for the exemption. In practical terms, the target audience can be summarised as follows:
- Turkish nationals who have been living abroad for an extended period
- Foreign nationals planning to relocate to Turkey
- Those who have obtained or are seeking Turkish citizenship through investment
Which income is exempt, and for how long?
Foreign-sourced income — dividends from foreign companies, rental income from overseas properties, capital gains, and similar — would be exempt from income tax for 20 years. Income generated from Turkish sources would continue to be taxed under existing legislation.
A significant shift in inheritance tax
Turkey’s current inheritance and gift tax operates on a progressive scale. For close relatives (spouse, children, parents), the rate ranges from 1% to 10% depending on the size of the estate; for more distant relatives and unrelated third parties, it rises from 10% to 30%. The draft proposal envisages replacing this structure with a flat rate of 1% for all cases. The real benefit is most pronounced for those with substantial estates or those planning to pass assets to individuals outside the immediate family — for small inheritances among first-degree relatives, the current system already starts at 1%, so the practical impact would be limited.
2. A New Landscape for Exporters and Corporate Investors
The package has direct implications for companies, not just individuals.
Sector-specific reductions in corporate tax
| Category | Current Rate | Proposed Rate |
| General corporate tax | 25% | 25% (unchanged) |
| Manufacturing exporters | 25% | 9% |
| Other exporting companies | 25% | 14% |
For companies engaged in export-oriented manufacturing in particular, this represents a potentially significant competitive advantage.
Full exemption for service exports
Companies exporting services in fields such as software, engineering, and architecture would benefit from a tax exemption raised to 100%, meaning such earnings would effectively be entirely tax-free.
Istanbul Finance Centre (IFC) incentives
High-rate corporate tax exemptions on international financial activities conducted within the IFC, along with income tax advantages on salaries of qualified personnel, are also included in the package.
3. Capital Amnesty: Bringing Overseas Assets Back to Turkey
Another notable component of the package is a capital amnesty (varlık barışı) provision designed to encourage the repatriation of assets held abroad.
Under the proposal, cash, gold, and securities held overseas could be brought to Turkey at reduced rates, with assurances that such assets would not be subject to tax investigation.
Looking at Turkey’s previous capital amnesty programmes (2008, 2013, 2018, 2021–2022), these windows have consistently been time-limited and not extended. Acting while the window is open may therefore carry strategic value.
4. Risks and Unresolved Questions
Alongside the positive picture, several important uncertainties deserve attention:
Compatibility with double taxation treaties: Turkey has signed double taxation agreements with more than 90 countries. How would exempting foreign-sourced income in Turkey interact with the concepts of “residence” and “taxing rights” established under those treaties? The final legislative text will need to address this clearly.
Proving the three-year non-residency requirement: How will the condition of “not having been a taxpayer in Turkey for the preceding three calendar years” be demonstrated in practice? Will foreign tax records be the primary basis, or will Turkish residence status be determinative?
The legislative process is not yet complete: There is always a gap between an announced package and the final law. Certain incentives may be narrowed, conditions may change, or implementation may be delayed.
Integration with the existing tax framework: Turkey taxes its full residents on their worldwide income. The 20-year exemption would be a specific exception to this general rule, and careful structuring will be essential in order to benefit from it.
5. Why Acting Now Matters
Even though the regulation has not yet been enacted, this period can be approached as a strategic preparation window. The following steps in particular are worth taking in advance:
- A detailed analysis of your tax residency status over the past three years
- Restructuring of international income and asset arrangements
- Initiating or updating citizenship or residence permit processes
- Preparatory steps regarding the transfer of overseas assets
Legal Consultation
Drawing on our experience in immigration and international law, we provide advisory services to overseas Turkish nationals and international clients considering Turkey as an investment base — covering every stage of this process.
For analysis of your tax residency status, citizenship by investment applications, residence permits, and the secure structuring of your international tax arrangements, please feel free to get in touch.
Frequently Asked Questions
What is the 20-year tax exemption? Under the package announced in April 2026, qualifying individuals’ foreign-sourced income would be exempt from income tax for a period of 20 years.
What is the key eligibility condition? Not having been registered as a taxpayer in Turkey for the three calendar years immediately before relocating to Turkey.
What does the 1% inheritance tax mean? Instead of the current progressive system — which runs from 1% to 10% for close relatives and from 10% to 30% for more distant relatives — a flat rate of 1% is proposed for all cases. The advantage is most significant for large estates and wider family transfers; for small inheritances between first-degree relatives, the impact is more limited.
What changes for service exporters? The tax exemption applied to earnings from service exports in fields such as software and engineering is proposed to be raised to 100%.
Can those who obtained citizenship through investment benefit from this? Yes, provided the other conditions are met — though individual circumstances should always be assessed by a professional.
Legal Disclaimer: All analysis contained in this article is based on publicly available announcements regarding a legislative package that has not yet been enacted. The final text of the law and its implementing rules may differ. Professional legal advice is recommended for any specific situation.
