The Republic of Türkiye is set to introduce a significant tax incentive for individuals relocating to Türkiye. Under the draft bill submitted to the Turkish Grand National Assembly, eligible individuals who become resident in Türkiye will be able to benefit from a 20-year income tax exemption on their foreign-sourced income. This benefit is provided on the condition that they have not resided in Türkiye and have not been subject to Turkish tax liability during the three years preceding their relocation.
This regulation is designed to attract foreign investors, expatriates, internationally mobile professionals, high-net-worth individuals, entrepreneurs, and Turkish citizens residing abroad. The exemption will be particularly relevant for individuals receiving income from foreign investments, overseas companies, dividends, interest, capital gains, foreign rental income, or other income generated outside Türkiye.
Scope of the Exemption
The exemption covers income and gains derived from sources outside Türkiye. Therefore, Turkish-sourced income, including rental income from property located in Türkiye, employment income, commercial income, professional service income, and income arising from Turkish assets, will continue to be evaluated under Turkish tax rules.
Accordingly, the regulation should not be interpreted as a general exemption from all Turkish tax obligations. It creates a special tax regime for eligible individuals who relocate to Türkiye after a qualifying period of non-residence and who continue to receive income from foreign sources.
Importance of the Regulation
Under the general principles of Turkish income taxation, individuals who are fully tax liable in Türkiye are taxed on their worldwide income. The new regime introduces an important exception to this principle by excluding foreign-sourced income from Turkish income taxation for a period of 20 years, subject to the statutory conditions.
This exemption strengthens Türkiye’s position as an attractive jurisdiction for international relocation, investment planning, and cross-border asset structuring.
Current Legislative Status
The regulation is currently included in a draft bill and has not yet entered into force. The final scope, eligibility conditions, documentation requirements, reporting obligations, and interaction with double taxation treaties will be determined after the legislative process is completed and the final text is published.
For this reason, individuals planning to relocate to Türkiye should obtain professional legal and tax advice before taking tax-sensitive steps.
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Before relocating to Türkiye or restructuring foreign assets, each individual’s position must be assessed separately. Prior residence history, tax liability in Türkiye during the previous three years, the source and nature of income, foreign company structures, applicable double taxation treaties, and reporting obligations may materially affect the legal outcome.
Professional legal and tax advice is essential to determine eligibility, identify potential risks, and structure the relocation process in a compliant and tax-efficient manner.
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