Turkey Introduces 20-Year Tax Holiday for New Residents
The exemption applies to foreign dividends, employment income, investment returns, rental income, and other income generated outside Turkey. Income sourced in Turkey will remain subject to ordinary Turkish taxation.
The legislation also introduces a preferential inheritance and gift tax regime for eligible participants and establishes a new capital amnesty program. Until July 2027, individuals will be able to declare and repatriate foreign assets to Turkey under favorable conditions, with protection from tax audits and penalties, provided the statutory requirements are met.
What does this mean in practice? The new regime underscores Turkey’s efforts to attract internationally mobile investors, entrepreneurs, and high-net-worth individuals. At the same time, obtaining tax residency in Turkey should not be viewed as a standalone solution to cross-border tax planning. A comprehensive review of asset ownership structures, business arrangements, controlled foreign company (CFC) rules, currency regulations, succession planning, and banking compliance considerations remains essential. Tax benefits available in one jurisdiction may still give rise to reporting obligations or tax exposure elsewhere.
