Turkey Has Abolished Taxes for Foreigners for 20 Years: Who Is Eligible for the Exemption?

In 2026, Turkey introduced a new tax regime that allows foreigners and other new tax residents to be exempt from Turkish income tax on income earned abroad for 20 years. The exemption applies to those who meet the established requirements and can be particularly beneficial for investors, entrepreneurs, and owners of foreign assets. We’ll explain who is eligible for the program, what types of income are exempt from taxation, and how to apply for the exemption.

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.

Turkey Has Granted New Residents a 20-Year Tax Exemption

In 2026, Turkey introduced one of the longest-lasting tax regimes for new residents. Under Law No. 7582 of May 21, 2026, individuals who move to the country and meet the established requirements are exempt from paying Turkish income tax on income earned abroad for 20 years.

The new regime is designed to increase Turkey’s appeal to foreign investors, entrepreneurs, and holders of international assets. It allows individuals to reside in the country while retaining their foreign sources of income, without incurring additional Turkish income tax on those earnings that meet the exemption criteria.

Key features of Turkey’s new tax program:

- Duration of the exemption: 20 years. During this period, income from foreign sources that qualifies for the exemption is not subject to income tax in Turkey.

- Effective as of 2026. The program applies to individuals who have acquired Turkish tax resident status on or after January 1, 2026.

- No general citizenship restriction. Individuals who meet the legal requirements may take advantage of the regime, regardless of whether they hold Turkish citizenship.

- Exemption from reporting relevant income. Foreign income covered by the exemption does not need to be included in the annual tax return in Turkey.

- Other tax obligations remain in effect. The exemption does not eliminate taxation on income from Turkish sources or potential tax obligations in other countries.

It is important to note that the 20-year tax exemption in Turkey is not automatically granted to all foreigners who have moved to the country. To qualify for this regime, individuals must meet the established criteria and obtain confirmation from the tax authority.

In our previous article, we discussed the Turkish real estate market in 2026: where to buy property and what investors should look out for.

Who is eligible for tax benefits in Turkey?

Individuals who have acquired tax resident status in Turkey as of January 1, 2026, and meet the requirements of Article 20/D of the Income Tax Law are eligible for the 20-year tax exemption in Turkey. The program is available not only to foreigners but also to Turkish citizens returning after a long period of residence abroad.

Key conditions for participation in the program:

- New tax residency. The individual must acquire Turkish tax residency status for the first time or again no earlier than January 1, 2026.

- The three-year rule. During the three calendar years preceding the acquisition of residency, the applicant must not have had a place of residence or tax registration in Turkey. For new residents in 2026, the period from 2023 to 2025 is reviewed.

- Source of Income Abroad. The exemption applies to income that, under Turkish tax law, is considered to have been earned outside the country.

- Proof of Eligibility for Exemption. You must apply to the tax authority and obtain a special document called the İstisna Belgesi.

At the same time, the law provides for an important exception. If, during the previous three years, a person had tax obligations in Turkey solely due to local dividends, rental income from real estate, or capital gains, this does not necessarily disqualify them from the exemption. The key is to meet the program’s other criteria.

For example, a foreigner who owned an apartment in Istanbul and received rental income from it could potentially qualify for the exemption after moving to Turkey in 2026. However, this is provided that they did not previously have a place of residence there and meet the other requirements.

Important: The law does not set a specific minimum investment amount, require the purchase of real estate, or mandate the establishment of a company to participate in the program. However, receiving the tax exemption does not replace the immigration documents required to reside in Turkey.

Learn more about e-Devlet for accessing government services in Turkey by following the link.

What types of income are tax-exempt in Turkey?

Tax exemptions in Turkey apply to income sourced from outside the country. Article 20/D of the Income Tax Law covers various categories of foreign income, including investment income, rental payments, and income from business activities. The main condition is that the income must meet the criteria for a foreign source under Turkish law.

The following may be exempt from Turkish income tax for a period of 20 years:

- Dividends from foreign companies. Payments on shares and equity interests in companies registered outside Turkey.

- Income from renting foreign real estate. Funds from renting out apartments, houses, or commercial premises in other countries.

- Interest and investment income. Income from deposits in foreign banks, bonds, investment funds, and other financial instruments.

- Gains from the sale of foreign assets. Income from the sale of foreign real estate, shares, and other assets, provided they meet the exemption criteria.

- Income from employment and business activities abroad. Salaries or business profits from activities actually carried out outside Turkey.

- Foreign pension payments. Certain types of pension income from foreign sources may also qualify for the exemption.

For example, an investor moves to Istanbul but continues to receive dividends from a German company and rent from an apartment in Spain. Provided the program’s requirements are met, these income streams may be exempt from income tax in Turkey.

Does the exemption apply to remote work?

For digital nomads and freelancers, the situation is more complex. A foreign employer or client does not guarantee tax exemption. If a person physically performs work within Turkey, the corresponding income may be considered to have been derived from a Turkish source.

For example, a programmer living in Antalya who works remotely for an American company should not automatically assume they qualify for the 20-year exemption. To determine tax obligations, one must consider the location where the work is performed, the nature of the contract, and the provisions of international tax treaties.

At the same time, income that meets the conditions for exemption does not need to be included in the annual tax return in Turkey, even if the individual reports other income. It is important to note that exemption from Turkish tax does not eliminate potential tax obligations in the country of origin of the income.

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What taxes will still need to be paid even under the new program?

The 20-year tax holiday in Turkey does not mean complete exemption from all taxes. The new regime applies only to income tax on specific categories of foreign income. Other tax obligations remain in effect even after receiving the exemption.

In particular, new tax residents of Turkey continue to pay:

- Income tax on Turkish income. Salaries from employment in Turkey, profits from local businesses, rental income from real estate, and other taxable income from Turkish sources are not covered by the exemption.

- Property tax. Owners of residential and commercial real estate in Turkey pay the applicable local taxes in accordance with general rules.

- VAT (KDV). Value-added tax continues to apply to goods and services in accordance with Turkish law.

- Vehicle tax (MTV). Owners of registered vehicles remain liable for the applicable annual tax.

- Other mandatory payments. Depending on the circumstances, obligations may arise to pay stamp duty, property acquisition taxes, and other prescribed payments.

Do you need to pay taxes in other countries?

Yes. Tax exemptions in Turkey do not automatically extend to tax obligations abroad. For example, an owner of an apartment in Germany may not be required to pay Turkish income tax on rental income but remains liable for the corresponding tax in Germany.

It is important to keep two additional rules in mind:

- Taxes paid abroad on income covered by the 20-year exemption cannot be credited to reduce Turkish income tax on other income.

- Expenses related to exempt income cannot be used to reduce taxable income in Turkey.

International double taxation treaties deserve special attention. They determine which country has the right to tax a specific type of income and may affect an individual’s tax obligations after relocation.

Previously, we discussed the specifics of obtaining a residence permit in Turkey in 2026.

How to Become a Tax Resident of Turkey?

To take advantage of the 20-year tax benefits in Turkey, you must obtain tax resident status in the country. Under the general rules of Turkish law, this status is determined by your place of permanent residence or the duration of your stay within the country.

A person may be considered a tax resident of Turkey if they meet at least one of the following two conditions:

- Has a permanent residence in Turkey. If a person has established their permanent home and center of life in the country, they can obtain resident status without having to wait the required six months.

- Has been in Turkey for more than six months during a calendar year. Temporary trips abroad generally do not interrupt this period.

However, there are exceptions. For example, foreigners who stay in Turkey for more than six months solely to perform specific temporary tasks, pursue education, or receive medical treatment may, under certain circumstances, not be recognized as tax residents.

Is a residence permit required to qualify for tax benefits?

It is important to distinguish between immigration and tax status. A residence permit (ikamet) allows a foreign national to legally stay in Turkey for a specified period, but does not in itself guarantee tax residency.

Conversely, being recognized as a tax resident does not automatically grant the right to long-term residence or employment.

Foreign nationals can apply for a residence permit on various grounds, including for educational purposes, family circumstances, or other reasons provided for by law. The requirements and procedure depend on the specific category of permit. You can check the available options on the official portal of the Turkish Migration Service.

It’s worth noting: obtaining Turkish tax residency does not always result in the automatic loss of such status in your previous country of residence. If two countries simultaneously recognize a person as their resident, you must check the provisions of the relevant double taxation treaty.

In our previous article, we discussed how foreigners can start a business in Turkey.

How do you apply for a 20-year tax exemption in Turkey?

To obtain a 20-year tax exemption in Turkey, simply moving to the country is not enough. The applicant must apply to the tax authority and obtain a special certificate—the İstisna Belgesi. The procedure is governed by Official Interpretation No. 333 dated July 4, 2026.

The process for obtaining a tax exemption involves several steps:

1. Obtain tax resident status. At the time of application, the applicant must meet the criteria for tax residency in Turkey.

2. Verify compliance with the program’s conditions. In particular, the applicant must confirm that they have had no place of residence or tax registration in the country during the three preceding calendar years, subject to statutory exceptions.

3. Submit an application to the tax authority. The application must be submitted to the competent Turkish tax authority (Vergi Dairesi) authorized to assess the applicant’s tax liability.

4. Undergo a review. The tax authority verifies the date of acquiring residency, the applicant’s prior tax history, and compliance with the established criteria.

5. Obtain the İstisna Belgesi. Upon successful review, the applicant is issued a document confirming the right to an exemption regarding the relevant foreign income.

When should the application be submitted in 2026?

The deadline for filing depends on the date of acquiring tax residency:

- By December 31, 2026 – for individuals who became tax residents of Turkey from January through October 2026, inclusive.

- By February 28, 2027 – for individuals who acquired tax residency in November or December 2026.

A similar procedure applies in subsequent years: generally, the application must be submitted by the end of the year in which residency was acquired. For the last two months of the year, an extended deadline is provided until the end of February of the following year.

What happens if the tax authority discovers a violation?

Receiving the document does not preclude further audits. If it is later determined that the applicant did not meet the program’s conditions, the tax authority may revoke the confirmation and assess additional taxes.

In such a case, you will have to pay not only the unpaid income tax but also the fines and late payment interest prescribed by law. For example, if an audit reveals hidden business activities in Turkey during the period that was supposed to confirm the absence of tax liabilities, the right to the tax relief may be revoked.

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.

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

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