Tax Exemption Regime

Turkey’s 20-Year Tax Exemption: A New Era

President Recep Tayyip Erdoğan has announced a major tax reform positioning Turkey as a competitive global hub for investors and high-net-worth individuals.

Key headline:
20-year tax exemption on foreign income + 1% inheritance tax

Core Framework

Individuals who have not been Turkish tax residents for the past 3 years:

• Pay 0% tax on foreign-sourced income for 20 years
• Are taxed only on income generated within Turkey

1% Inheritance Tax

• Flat 1% inheritance tax under the regime
• Significant reduction vs. standard rates (up to 10%)
• Strong advantage for long-term wealth planning

Who Qualifies?

• Turkish citizens living abroad
• Foreign nationals relocating to Turkey
• Entrepreneurs and investors with primarily global income

What Income Is Exempt?

• Foreign salaries
• Dividends and interest
• Capital gains
• Overseas rental income
• Pensions and IP income