Moving to Turkey in 2026: What tax benefits do new residents receive?

In 2026, Turkey became one of the few countries that significantly revised its tax policy in favor of new residents. With the entry into force of Law No. 7582, the country introduced a set of tax incentives aimed at attracting international investors, entrepreneurs, business owners and high-income earners.

In fact, Turkey offers new residents not individual tax benefits, but a whole system of benefits that can significantly reduce the tax burden and make the country attractive for long-term residence and international asset structuring.

Who can benefit from the new benefits?

The new regime is primarily aimed at individuals who move to Turkey and become its tax residents. One of the main conditions is that the person must not have been a tax resident of Turkey for three calendar years preceding the move. By meeting the criteria established by law, the new resident can access a special tax regime.

20 years of tax-free foreign income

The most significant benefit is the new Article 20/D of the Turkish Tax Code. Under the new legislation, new tax residents can be exempted from paying Turkish personal income tax on income earned outside Turkey for up to 20 tax years.

The benefit can apply to various categories of foreign income, including:

• dividends from foreign companies;
• income from renting real estate abroad;
• interest;
• royalties;
• profit from the sale of foreign assets;
• other income originating outside Turkey.

For international investors, this means the opportunity to reside in Turkey without paying tax on most of their foreign investment income.

However, it is important to note that the new regime does not exempt income earned directly in Turkey from taxation. Salaries, business activities, rental of Turkish real estate, dividends from Turkish companies and other income of Turkish origin are taxed according to the general rules of tax legislation.

That is why it is advisable to analyze the structure of your income and plan your tax residency correctly before moving.

For many entrepreneurs, the new regime opens up the opportunity to structure international business more effectively. If the main income is generated outside of Turkey, the new tax residency status can significantly optimize the overall tax burden in accordance with the requirements of the law.

This is especially relevant for owners of international companies, IT entrepreneurs, consultants, investors and individuals who receive passive income from different countries.

Another important advantage of the new legislation is the special regime for inheritance and gift taxation.

For individuals who benefit from the new tax benefits, the inheritance and gift tax rate can be as low as 1%. This greatly simplifies the transfer of family capital to the next generation and makes Turkey an attractive jurisdiction for building long-term family office structures.

New residents can also take advantage of the voluntary asset declaration program. Until July 2027, the law allows the transfer of funds, securities, gold and other assets to Turkey with the application of a special preferential regime. After proper declaration of assets, the state guarantees the absence of tax claims on such assets within the scope of the program. Combination with the citizenship by investment program. Tax incentives effectively complement the existing program for obtaining Turkish citizenship by investment. A foreign investor can purchase real estate for an amount of 400,000 USD and get the opportunity to obtain Turkish citizenship for himself and his family members. Combined with the new tax incentives, this makes Turkey one of the most competitive jurisdictions for international investors.

Today, Turkey offers a comprehensive approach for those planning an international relocation.

New residents can obtain a long-term exemption from foreign income taxation, take advantage of the asset legalization program, apply a preferential inheritance regime, invest in real estate and, if there are grounds, obtain citizenship. It is the combination of these opportunities that makes the country particularly interesting for international entrepreneurs, investors and families planning to manage their capital for the long term.

The Antwort Law team accompanies clients during their move to Turkey, analyzes the possibility of applying the new tax regime, advises on obtaining tax residency, structuring international business, investments and obtaining citizenship.

If you are considering Turkey as a country for relocation, doing business or international tax planning, contact the Antwort Law team. We will help you assess your situation, identify available tax benefits and build the optimal legal and tax structure according to your goals.

Lidia Ivanova

International lawyer
Antwort Law