Turkey tax incentives for foreign investors under Law No. 7582. Learn the 20-year foreign income exemption, asset repatriation & legal planning.

Understanding the Turkey Tax Incentives is crucial for foreign investors looking to maximize their financial benefits.

Turkey Tax Incentives for Foreign Investors: 7 Powerful Benefits Under Law No. 7582 (2026)

Turkey has introduced one of its most significant investor-focused tax reform packages in recent years. Law No. 7582, published in the Official Gazette on 4 June 2026, creates new opportunities for foreign investors, returning residents, international entrepreneurs, high-net-worth individuals and global business groups considering Turkey as a base for residence, investment, citizenship planning or regional operations.

The Turkey Tax Incentives also include various benefits that can significantly enhance the investment landscape for foreign entities.

The most striking change is the new 20-year income tax exemption for foreign-source income. Under the new regime, individuals who become tax resident in Turkey may, subject to certain conditions, benefit from a long-term exemption for income and gains derived outside Turkey. For globally mobile investors, this can make Turkey significantly more attractive as a relocation and investment jurisdiction.

This could be particularly appealing due to the favorable Turkey Tax Incentives for those relocating to the country.

However, the new law is broader than one personal income tax exemption. It also introduces or expands several investor-relevant measures, including asset repatriation, a reduced inheritance tax rate, incentives for qualified service centers, transit trade advantages, Istanbul Finance Center benefits, reduced corporate tax for production activities and improved rules for technology start-ups.

This guide explains the key Turkey tax incentives introduced or expanded under Law No. 7582 and why foreign investors should review their Turkish residence, citizenship, company and asset structuring plans carefully.

Moreover, the Turkey Tax Incentives provide a framework that supports investors in navigating the legal landscape.

1. The 20-Year Foreign Income Tax Exemption

The headline reform is the new exemption for foreign-source income and gains. Individuals who are considered resident in Turkey may benefit from a 20-year income tax exemption for income and gains obtained outside Turkey, provided that they did not have a residence address and tax liability in Turkey during the last three calendar years before becoming resident.

These Turkey Tax Incentives may present a key opportunity for international businesses.

For foreign investors, this is potentially a major planning opportunity. It may be relevant for individuals who receive:

• dividends from foreign companies;
• interest from foreign bank accounts;
• rental income from foreign real estate;
• capital gains from foreign shares, securities or assets;
• income from foreign business interests;
• royalties or intellectual property income generated abroad;
• pension or retirement income from foreign sources.

The exemption applies only to foreign-source income. Turkish-source income remains taxable under ordinary Turkish tax rules. For example, rental income from a property in Istanbul, dividends from a Turkish company, professional income generated from services performed in Turkey, or salary from a Turkish employer would not fall within the foreign-source exemption.

Understanding these nuances is critical to fully leveraging the Turkey Tax Incentives.

This distinction is extremely important. Many international investors have mixed income structures, with some income generated abroad and some generated in Turkey. A legal and tax review should therefore be completed before relocating, applying for residence, acquiring property, establishing a company or applying for Turkish citizenship by investment.

2. Who Can Benefit from the New 20-Year Regime?

The new tax exemption is designed for individuals who become resident in Turkey after a period of non-residence. The core eligibility test is based on the previous three calendar years.

The Turkey Tax Incentives target individuals seeking to establish residency.

In general terms, the individual must:

1. become resident in Turkey;
2. not have had a residence address in Turkey during the previous three calendar years;
3. not have had Turkish tax liability during the previous three calendar years;
4. apply to the competent tax office within the required application period;
5. obtain the official exemption certificate.

The regime may be particularly relevant for:

• foreign nationals planning to move to Turkey;
• investors considering Turkish citizenship by investment;
• high-net-worth individuals relocating from Europe, the Middle East, Asia or the United States;
• Turkish citizens who have lived abroad for many years and plan to return;
• entrepreneurs whose business income is mainly generated outside Turkey;
• families with foreign investment portfolios and international inheritance planning needs.

The exemption is not automatic. Eligible individuals must apply to the competent tax office and obtain a certificate for foreign-source income and gains. The application deadline depends on the year in which the individual becomes resident in Turkey. In general, the application must be made by the end of the calendar year in which the person becomes resident; if the person becomes resident in the last two months of the year, the deadline extends to the end of the second month of the following year.

Failure to apply on time may result in loss of the exemption. This is why residence planning and tax planning should be coordinated before the investor’s factual relocation to Turkey.

Timing is essential to benefit from the Turkey Tax Incentives effectively.

3. Reduced 1% Inheritance Tax for Eligible Persons

Law No. 7582 also introduces a highly attractive inheritance tax advantage for individuals benefiting from the 20-year foreign income exemption.

During the exemption period, inheritance transfers to such individuals may be subject to a 1% inheritance tax rate. This is a significant departure from the ordinary progressive inheritance tax structure in Turkey.

For international families, this may become one of the most important estate planning features of the new regime. Many foreign investors who relocate to Turkey have substantial assets abroad, including company shares, bank portfolios, family businesses, real estate, investment funds or succession structures. A reduced inheritance tax rate may improve Turkey’s attractiveness for long-term family wealth planning.

However, this advantage should not be interpreted in isolation. Cross-border inheritance planning may involve several legal systems at the same time, including the law of the country where the assets are located, the citizenship law of the heirs, tax treaties, forced heirship rules, marital property rules and probate requirements.

For this reason, foreign investors should obtain legal advice before moving assets, changing tax residence, purchasing Turkish real estate, transferring company shares, restructuring family holdings or applying for Turkish citizenship.

4. Asset Repatriation: Bringing Foreign Assets into Turkey

Utilizing the Turkey Tax Incentives can significantly impact financial planning.

Law No. 7582 introduces a new asset repatriation mechanism, commonly referred to as “asset peace” or “asset repatriation.” This allows individuals and legal entities to declare certain assets located abroad or assets located in Turkey but not recorded in statutory books.

The covered assets include:

• cash;
• foreign currency;
• gold;
• securities;
• shares;
• bonds;
• other capital market instruments.

The declaration deadline is 31 July 2027. Foreign assets must generally be transferred to a bank or brokerage account in Turkey within two months after the declaration.

The tax rate depends on the period for which the declared assets are committed to be kept in certain eligible instruments such as time deposit accounts, government domestic debt securities, lease certificates or venture capital investment funds. The rate may range from 0% to 5%, depending on the commitment period.

The longer the holding commitment, the lower the applicable tax rate. A five-year holding commitment may allow the investor to benefit from a 0% rate, while shorter periods may trigger higher rates.

This mechanism may be highly relevant for foreign investors who want to bring assets into Turkey for:

• • Turkish citizenship by investment;
  • real estate acquisition;
  • bank deposit investment;
  • company establishment;
  • capital increase;

The Turkey Tax Incentives are crucial for families considering long-term wealth strategies.

• family relocation;
• long-term wealth planning.

Nevertheless, the asset repatriation regime does not override anti-money laundering, customs, capital markets, sanctions, banking compliance or criminal law obligations. Banks and brokerage institutions may still require source-of-funds documentation, transaction history, identification documents, company records and additional compliance explanations.

For foreign investors, the practical success of asset repatriation will often depend not only on the tax law wording, but also on banking compliance, documentation quality and the legal consistency of the investment plan.

Foreign investors must consider how the Turkey Tax Incentives align with their investment goals.

5. Qualified Service Centers: A New Opportunity for International Groups

Law No. 7582 introduces a new structure under the Direct Foreign Investment Law: the “qualified service center.”

A qualified service center is a capital company established to provide certain services to related companies or group companies operating actively in at least three different countries. The center must obtain at least 80% of its annual revenue from foreign related companies or group companies.

The relevant activities may include, among others:

• • financial advisory;
  • strategic management consulting;

By doing so, they can leverage the Turkey Tax Incentives effectively.

• risk management;
• cash and liquidity management;
• funding and debt operations;
• investment and capital structure planning;
• budgeting;
• financial reporting and analysis;
• international accounting and compliance;
• audit;
• digital transformation and technology consulting;
• investment and data analysis;
• brand management;
• human resources;
• training;
• coordination and management services.

For foreign business groups, this may create a powerful reason to establish a regional management, finance, technology or back-office hub in Turkey.

The law also provides corporate tax advantages for qualified service centers. In general, 95% of income obtained from foreign-source activities within the scope of the qualified service center may be deductible from the corporate tax base, provided that the income is transferred to Turkey by the deadline for filing the relevant annual corporate tax return. For qualified service centers operating in the Istanbul Finance Center or certain designated industrial zones, this deduction may reach 100%.

This incentive may apply for 20 accounting periods starting from the accounting period in which the qualified service center begins its operations.

These strategic advantages stem from the Turkey Tax Incentives, which are designed for maximum benefit.

For multinational groups, this can be a highly strategic development. Turkey offers a strong geographic position, access to Europe, the Middle East, Central Asia and North Africa, a large professional workforce and competitive operating costs. The new qualified service center regime may strengthen Turkey’s position as a regional headquarters jurisdiction.

6. Wage Tax Incentives for Qualified Service Personnel

The new qualified service center regime also includes employee-level tax incentives. Qualified service personnel employed in qualified service centers may benefit from an income tax exemption on the portion of their wages up to certain statutory limits.

This is important for foreign investors because regional headquarters and service centers are often talent-driven structures. Tax incentives for employees can reduce overall employment cost and help international groups attract senior finance, management, compliance, digital transformation, technology and advisory professionals.

For foreign companies evaluating whether to establish a Turkish service center, this incentive should be reviewed together with:

• corporate tax deductions;
• employment law rules;
• work permit requirements for foreign employees;
• social security costs;
• payroll structuring;
• transfer pricing rules;
• related-party service agreements;
• substance and management requirements.

A qualified service center should not be established only on paper. It must be designed as a real operating structure with proper corporate governance, contracts, employees, accounting, bank accounts, service flow and compliance documentation.

7. Transit Trade, Istanbul Finance Center and Production Incentives

Law No. 7582 also expands or improves several company-level incentives that may be relevant to foreign investors.

Transit Trade and Foreign Trade Structures

The law expands incentives for transit trade and the sale of goods purchased abroad without bringing them into Turkey, or without entering them into Turkish import procedures. This can be relevant for international trading companies using Turkey as a coordination, management, contracting or regional commercial base.

The Turkey Tax Incentives enhance opportunities for international trading firms.

For foreign investors active in commodities, consumer goods, machinery, technology products, agricultural products or international supply chains, these rules may create new structuring opportunities. However, careful analysis is required to determine whether the income is genuinely within the scope of transit trade and whether transfer pricing, customs, VAT and corporate tax rules are properly managed.

Istanbul Finance Center Advantages

The law also extends the 100% corporate tax deduction for financial service export income in the Istanbul Finance Center until 2047. In addition, the exemption period for certain financial activity fees applicable to participating financial institutions has been extended to 20 years.

This may be particularly relevant for banks, portfolio management companies, payment institutions, fintech businesses, investment firms, leasing companies, insurance-related entities and other financial service providers considering Turkey as a regional finance hub.

This extension of tax benefits represents one of the core Turkey Tax Incentives available today.

Reduced Corporate Tax for Production Activities

Another important change is the reduced 12.5% corporate tax rate for certain production income. The reduced rate applies to income derived exclusively from production activities by companies holding an industrial registry certificate and actually engaged in production, as well as income derived exclusively from agricultural production activities.

Foreign investors should leverage these Turkey Tax Incentives for maximum impact.

This rule applies to income obtained in 2027 and subsequent taxation periods. For foreign investors planning manufacturing or agricultural production in Turkey, the new rate may improve project feasibility and after-tax return calculations.

Why Law No. 7582 Matters for Turkish Citizenship by Investment

The new tax incentives are especially important for individuals considering Turkish citizenship by investment.

Many citizenship investors do not only ask whether they can acquire Turkish citizenship. They also ask what happens after citizenship:

• Will Turkey tax my worldwide income?
• Can I keep my foreign company dividends outside Turkey?
• Will my foreign real estate income be taxed in Turkey?
• What happens if I relocate with my family?
• Can I bring investment capital into Turkey efficiently?
• How should I structure a property purchase, bank deposit or company investment?
• What are the inheritance implications for my family?

Law No. 7582 makes these questions even more important. The new 20-year foreign income exemption may create a strong advantage for eligible investors, but the benefit depends on timing, residence status, previous Turkish tax history, application deadlines and documentation.

A foreign investor who becomes resident in Turkey before planning properly may lose or weaken the benefit. By contrast, an investor who coordinates immigration, tax residence, asset transfer, property acquisition and company structuring in advance may be in a much stronger position.

Practical Legal Checklist for Foreign Investors

Before relying on the new Turkey tax incentives, foreign investors should review the following points:

1. Have you been tax resident in Turkey during the last three calendar years?
2. Did you have a registered residence address in Turkey during that period?
3. Have you had any Turkish tax liability due to business, employment or other activity?
4. Is your income foreign-source or Turkish-source?
5. Do you need to apply for the exemption certificate before a deadline?
6. Are your foreign assets documented for banking compliance?
7. Will you transfer assets to Turkey under the asset repatriation regime?
8. Are you planning Turkish citizenship by investment?
9. Will you buy real estate, make a bank deposit, invest in funds or establish a company?
10. Do you need inheritance and family wealth planning?
11. Are you establishing a regional headquarters, service center or trading company?
12. Do you need Turkish tax, corporate, banking, immigration and real estate advice together?

How TENHA LAW FIRM Assists Foreign Investors

TENHA LAW FIRM advises foreign investors, entrepreneurs and high-net-worth individuals on Turkish investment, citizenship, residence, real estate, corporate and cross-border legal planning.

Our legal services may include:

• Turkish citizenship by investment legal planning;
• residence permit and relocation strategy;
• real estate acquisition due diligence;
• bank deposit and investment route coordination;
• company formation and corporate structuring;
• review of asset transfer and source-of-funds documentation;
• coordination with tax professionals for Law No. 7582 planning;
• qualified service center setup support;
• Turkish inheritance and succession planning;
• legal risk analysis for foreign investors moving to Turkey.

The new Turkey tax incentives create opportunities, but they also require careful timing and documentation. Before relocating, investing, transferring assets or applying for Turkish citizenship, foreign investors should obtain a tailored legal review.

Conclusion: Turkey’s New Tax Regime Creates a Strategic Window

Ultimately, understanding the Turkey Tax Incentives is essential for making informed decisions.

Law No. 7582 represents a major shift in Turkey’s approach to attracting foreign capital, international talent, returning residents and high-net-worth individuals. The 20-year foreign income tax exemption, 1% inheritance tax advantage, asset repatriation mechanism, qualified service center regime, Istanbul Finance Center incentives and reduced production tax rate all point in the same direction: Turkey is positioning itself as a more competitive jurisdiction for global investors.

For foreign investors, the opportunity is real. But the benefit depends on correct structuring. Tax residence, immigration status, asset transfers, banking compliance, company setup and citizenship planning should be reviewed together.

For a confidential legal assessment of your investment, relocation or Turkish citizenship plan, contact TENHA LAW FIRM.