Tax Holidays in Turkey 2026: 20-Year Tax Exemption and Real Estate Investments in Istanbul

Turkey has introduced one of the world’s longest-running special tax regimes for foreign investors, offering a 20-year tax exemption on foreign income. At the same time, the Istanbul real estate market remains the primary focus for participants in Turkey’s citizenship-by-investment program. Learn more about the terms of the new tax regime, investment options, and the features of serviced apartments in Istanbul

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Turkey has introduced one of the most generous special tax regimes in the world—a 20-year tax exemption on foreign income for new tax residents of the country. This move coincided with a significant influx of capital into Istanbul, whose real estate market remains one of the most dynamic in the region. Imidaily recently wrote about the combination of tax incentives and investment opportunities in the Turkish market.

What are the terms of the new tax regime, how does Turkey’s citizenship-by-investment program work, why is interest in serviced apartments in Istanbul growing among foreign buyers, and what risks should you consider before investing—we’ll cover all of this in the article below.

Are you planning to take advantage of the Turkish tax regime or participate in the citizenship-by-investment program?

The immigration lawyers at Visit World will help you verify your eligibility, select the optimal investment vehicle, and guide you through the documentation process.

The Essence of the 20-Year Tax Exemption in Turkey

The new tax regime provides that a person who obtains tax resident status in Turkey is exempt from taxation on foreign income and capital gains for 20 years. The duration of this exemption makes it one of the longest-lasting special tax regimes available in the world today.

The exemption applies retroactively starting January 1, 2026. Individuals who obtained tax resident status at the beginning of 2026 automatically fall under the new regime and are not required to submit additional documents to confirm their eligibility for the exemption.

About the Turkish real estate market in 2026 — read more at the link.

Who is eligible for tax benefits in Turkey?

The system is based on simple criteria. A person is eligible for the exemption if they become a tax resident of Turkey and, during the preceding three years, did not have a Turkish residence or any tax obligations to the Turkish government.

The program does not set a minimum investment threshold, does not require passing a language exam, and has no restrictions based on the applicant’s citizenship. The main requirement is obtaining tax residency, which can be achieved through three primary routes:

• the Turkish Citizenship by Investment Program;
• a residence permit;
• a work permit.

About investing in Istanbul real estate for CBI — we explain it here.

The Turkish Citizenship-by-Investment Program: Investment Options

The Turkish Citizenship by Investment Program remains the most popular in the world in terms of the number of principal applicants who have been naturalized. Since 2018, over 13,000 investors have completed the program. The program provides direct access to citizenship without requiring physical presence in the country or knowledge of the Turkish language.

Applicants can choose from several investment options:

• purchasing real estate worth at least $400,000;
• investing $500,000 in fixed capital;
• a bank deposit of $500,000;
• purchasing government bonds for the same amount;
• an investment in investment fund shares or a private pension plan.

Real estate remains the most popular option among foreign investors. The minimum amount of $400,000 must be held for three years, after which the property can be sold. The asset retains its liquidity, appreciates in value, and has the potential to generate rental income.

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Istanbul as a Priority Investment Destination

Istanbul leads the Turkish real estate market in terms of transaction volume and interest from foreign buyers. The city combines its status as an international financial center with high tourist traffic—an average of 16 million tourists per year. These figures directly impact the profitability of rental properties.

The profitability of purchased real estate depends significantly on how it is managed. A standard apartment provides the owner with capital appreciation and income from long-term rentals. Professionally managed serviced apartments generate income based on the hotel model—with nightly rates, stable occupancy, and revenue that does not depend on the owner’s presence in the country.

How to Obtain a Turkish Green Passport in 2026—we explain in this article.

Serviced Apartments as an Investment Format

Over the past decade, the serviced apartment model has transitioned from a niche segment to the mainstream in the markets of Europe, the Persian Gulf, and East Asia. The format attracts investors with a combination of three elements: professional management, regular income, and the opportunity for personal use of the property.

Tighter regulations on short-term rentals in many countries have further shifted demand toward branded operators that operate within the legal framework. A European example of such an operator is Ando Living, founded in 2019. Its management division serves over 2,000 apartments in Portugal and has processed more than 175,000 bookings, hosting over 500,000 guests.

The company’s project in Istanbul—Ando Living Tomtom House—is located in Beyoğlu, in the historic Tomtom district. The location is within walking distance of Galataport, Karaköy, Galata, and Istiklal Avenue—an area with a steady year-round flow of visitors.

Read also: Turkey Beyond the Resorts: 10 of the Country’s Hidden Gems.

What should you consider before participating in the program?

The tax regime has specific eligibility criteria that should be verified before submitting an application. The 20-year tax exemption applies only if the applicant is a tax resident of Turkey and can confirm a three-year history of having no outstanding tax liabilities to the Turkish government. Individuals with recent tax history in the country must separately confirm their compliance with the requirements.

At the time the regime was introduced, the Turkish Ministry of Finance had not yet published an implementation notice detailing the criteria by visa type. Certain operational aspects of applying the exemption remain unregulated and require further clarification from the regulator.

U.S. citizens should take into account the specifics of U.S. tax law. The U.S. Internal Revenue Service (IRS) taxes residents’ income on a worldwide basis regardless of place of residence; therefore, the Turkish tax relief regime for this category of applicants functions only as one component of a comprehensive tax planning strategy.

By the way, all rules for entering Turkey are compiled at the link.

Consultation with an immigration lawyer on the Visit World portal

Obtaining tax residency in Turkey, participating in the citizenship-by-investment program, and selecting the optimal investment vehicle require personalized legal guidance. On the Visit World portal, you can consult with an immigration lawyer who will help you understand the terms of the tax regime, assess your eligibility, and develop a step-by-step action plan tailored to your specific situation.

Schedule a consultation with an immigration lawyer on the Visit World portal and receive expert support at every stage of the process!

Reminder! In our previous article, we published a ranking of the safest countries for investors in 2026.

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