Turkey: 20 Years Tax-Free on Foreign Income – a Sober Analysis
On 24 April 2026, Turkish President Recep Tayyip Erdoğan announced a tax package that has made waves among specialists: anyone not tax resident in Turkey in the past three years would pay no Turkish tax on foreign income for 20 years after moving there. We analyse what is planned, what remains open and who the Turkey tax exemption could interest.
- ✛Planned: 20 years without Turkish tax on foreign income for people without tax residence in the past 36 months.
- ✛Also announced: 1% inheritance and gift tax, favourable asset repatriation, 9% corporate tax for exporters.
- ✛This is a political announcement – check the current legislative status before any decision.
- ✛Risks: lira depreciation, high inflation, political reliability and legal certainty.
- ✛Exit taxation in the home country (e.g. § 6 AStG in Germany) must be clarified before moving.
What Erdoğan actually announced
The package was presented in Istanbul as part of the «Turkey Century Strong Center for Investment Program». The key points:
| Measure | Planned rule |
|---|---|
| Foreign income | 20 years without Turkish tax on dividends, capital gains, royalties and foreign profits for newcomers without tax residence in the past 36 months |
| Inheritance and gift tax | Flat 1% instead of up to 30% |
| Asset repatriation | Cash, gold and securities from abroad at 2–3% or tax-free |
| Corporate tax for exporters | 9% instead of 25% for manufacturing exporters; service exports via the Istanbul Finance Centre tax-free |
Finance Minister Mehmet Şimşek said Turkey wants to compete with financial centres such as Singapore and Hong Kong. Only income generated directly in Turkey would be taxed.
What is not yet settled
At the time of the announcement, the package was a political declaration of intent, not adopted law. It was to be submitted to parliament, with no date given. Open points included:
- ✛whether a minimum investment or other entry criteria apply,
- ✛whether family members are automatically included,
- ✛how proof of foreign income will be regulated,
- ✛whether the programme also covers holders of Turkish citizenship by investment without prior tax residence.
Until the law and implementing regulation are published: no binding commitments and no relocation decisions. Have the current status checked before every step.
The Turkey tax exemption in international comparison
| Country | Model | Duration / cost |
|---|---|---|
| Portugal | NHR programme (heavily restricted) | 10 years |
| Italy | Flat tax | 15 years, EUR 300,000 per year |
| Greece | Non-dom status | EUR 100,000 per year |
| Malta | Territorial residency models | With minimum tax |
| Turkey (planned) | Tax exemption on foreign income | 20 years, no flat fee announced |
If enacted as announced, Turkey would be one of the most aggressive models in and around Europe in terms of duration and entry threshold. Erdoğan positioned the country as an «island of stability», explicitly also for people from the Gulf states seeking a new base after the Iran war.
The risks – and why they matter
- ✛Currency risk: the lira has depreciated structurally for years, and inflation was recently around 31%. If you earn in euros or dollars, factor in the loss of purchasing power on local spending.
- ✛Political reliability: Turkey has repeatedly changed economic course abruptly. A 20-year privilege assumes future governments will uphold it.
- ✛Legal certainty: the arrest of Istanbul mayor Ekrem İmamoğlu in early 2025 raised international doubts about judicial independence.
- ✛Election context: according to Turkish media, Erdoğan was simultaneously preparing his party for possible early elections. Tax incentives in this setting are more often watered down or only partly implemented.
- ✛Exit taxation: anyone leaving Germany, Austria or Switzerland must check the consequences in the home country – in Germany, for example, § 6 AStG. Restructuring before departure is often essential.
How residence, company seat and taxation interact is explained in our article on permanent representatives and CFC taxation.
Who the location could interest
- ✛Entrepreneurs with international income: dividends from a foreign holding, royalties or foreign profits – provided the income clearly originates abroad.
- ✛Investors from the Gulf: the package explicitly targets former residents of Dubai, Abu Dhabi or Qatar seeking a more stable base.
- ✛Families planning succession: 1% inheritance and gift tax is a tangible advantage when transferring wealth.
- ✛People with a link to Turkey: if you are already considering Istanbul, Bodrum or the Riviera as a home, include the package as an additional factor – not the sole reason.
Citizenship by investment as an additional lever
Turkey has offered a citizenship-by-investment programme for years: from USD 400,000 in Turkish real estate, citizenship is possible, and a residence permit (İkamet) from USD 200,000.
If the tax package also applies to CBI candidates without prior tax residence, an interesting combination would arise: a Turkish passport plus 20 years of tax exemption on foreign income. Whether this is accessible must be clarified by the final legislation.
What makes sense now
- 1Monitor developments: wait for the legislation and implementing regulation.
- 2Check the basic requirement: have you had Turkish tax residence in the past three years?
- 3Analyse your income structure: which income qualifies as foreign, and which does not?
- 4Clarify your home country: review exit taxation and restructuring with specialist advice before taking any steps.
Conclusion: interesting, but review carefully
With this announcement, Turkey takes a big step towards international competitiveness. If enacted as announced, the package would rank among the most attractive residency tax programmes worldwide. At the same time, structural economic problems, high political volatility and a currency under pressure remain.
Consider Turkey as one of several options, not the only answer. SWICOR analyses your residence and company structure and keeps an eye on developments in Turkey and other locations for you.
Plan your relocation and structure on solid ground.
Residency →Frequently asked questions
Who would benefit from the Turkey tax exemption?
People who have not been tax resident in Turkey in the past 36 months and move their residence there. Foreign income would then be tax-free for 20 years.
Is the tax exemption already in force?
It was politically announced in April 2026. Check the current legislative status and implementing regulation before making decisions.
Which income remains taxable in Turkey?
Income generated directly in Turkey remains taxable. Only clearly foreign income would be exempt.
What about exit taxation?
It depends on the law of your home country. In Germany, for example, § 6 AStG applies to certain shareholdings. Clarify this before moving.
Is Turkey better than Italy or Greece?
In terms of duration and cost, Turkey would be more attractive. This must be weighed against currency, political and legal risks on an individual basis.
Turkey, Europe or elsewhere?
We compare residency options for your profile and review the tax consequences in your home country – before you take any steps.
This article is a general analysis and does not replace individual tax or legal advice. Regulations change; the information reflects the status at the date of publication.