How to receive foreign income and not pay taxes in Turkey for 20 years?

In 2026, Turkey introduced one of the most attractive tax regimes for new residents. Thanks to Law No. 7582, individuals who move to the country and acquire tax resident status can, under certain conditions, be exempted from paying Turkish tax on most income earned outside Turkey for up to 20 tax years.

This opens up new opportunities for international investors, entrepreneurs and capital owners for effective tax planning and long-term asset management.

According to the new Article 20/D of the Turkish Tax Code, new tax residents can receive a special tax regime on foreign income. If the legal requirements are met, such income is not included in the tax base in Turkey for twenty tax years. In effect, this means that a person can reside in Turkey but not pay Turkish tax on certain categories of foreign income.

What income can be exempted from taxation?

The new regime may apply to:

• dividends from foreign companies;
• interest on bank deposits and financial instruments;
• royalties;
• income from rental of real estate outside Turkey;
• profit from the sale of foreign assets;
• other income whose source is outside Turkey.

That is why the new regime has aroused considerable interest among owners of international businesses and investment portfolios.

Individuals who meet the requirements of Turkish legislation and become new tax residents of the country can take advantage of the special regime. In this case, it is necessary to take into account the criteria for acquiring tax residency and other conditions stipulated by law. That is why it is important to conduct a comprehensive tax analysis before moving.

What income remains taxable?

• The benefit does not mean complete exemption from taxation.
• Income whose source is directly in Turkey is still taxed according to the general rules.
• This applies, in particular:
• wages;
• income from business activities in Turkey;
• rental of Turkish real estate;
• dividends from Turkish companies;
• other income of Turkish origin.

That is why the correct structuring of income sources is of key importance. In recent years, many countries have increased the tax burden on high-income individuals. Against this background, Turkey offers a long-term and predictable system of incentives for new residents. For owners of international companies, investors, traders, consultants and entrepreneurs, this can mean a significant reduction in the overall tax burden, provided that the requirements of the law are met.

Each international business structure has its own characteristics. Before moving to Turkey, it is necessary to evaluate the tax legislation of the country of citizenship, the rules of other jurisdictions, international treaties on the avoidance of double taxation and the possible consequences of changing tax residency. Only a comprehensive analysis allows you to correctly take advantage of new opportunities and avoid risks.

Antwort Law team helps clients assess the possibility of applying the new tax regime, supports the change of tax residency, structuring international assets and creating effective corporate models.

If you are planning to move to Turkey or receive income from different countries around the world, contact Antwort Law team. We will analyze your situation and offer the best solution in accordance with your goals and the requirements of international tax law.

Lidia Ivanova

International lawyer
Antwort Law