Tax

Turkey's Proposed 20-Year Foreign Income Tax Exemption: What Expats Should Know

Türkiye has announced a proposed 20-year exemption from Turkish tax on foreign-source income for qualifying new residents. It is still a developing proposal, not a filing position.

By Türkiye Relocation Tax DeskLast fact-checked 5-minute read
  • Foreign income
  • Tax
  • New residents

Last updated: 30 April 2026

Status: Developing topic. This article reflects sources available as of 30 April 2026. Final legislation, official guidance or implementation details may change the outcome.

Short answer: President Recep Tayyip Erdoğan announced a proposed 20-year exemption from Turkish tax on foreign-source income and gains for people living abroad who have not been Turkish tax residents/taxpayers in the previous three years and who come to Türkiye. As of 30 April 2026, it should be treated as proposed, not enacted law, unless and until final legislation is published in the Official Gazette and implemented by the tax authorities.

Key takeaways

  • The announcement was made on 24 April 2026 at the Century of Türkiye Strong Hub for Investment event.
  • The official Presidency/Directorate of Communications statement says Türkiye would not tax foreign-source income and gains for 20 years for qualifying people living abroad.
  • The announced condition is that the person was not a Turkish tax resident/taxpayer in the previous three years.
  • Turkish-source income would remain taxable.
  • The announcement also referred to a 1% inheritance-transfer tax for qualifying people.
  • Anadolu Agency later reported Finance Minister Mehmet Şimşek's explanation that the measure targets Turkish citizens abroad and global expats.
  • We did not find final enacted legislation in the Official Gazette or GİB guidance as of 30 April 2026.

What was announced?

The Presidency/Directorate of Communications published Erdoğan's 24 April 2026 remarks. The relevant tax point was a planned rule for people living abroad who have not been tax residents/taxpayers in Türkiye in the last three years. If they come to Türkiye, the announcement says Türkiye would not tax their foreign-source income and gains for 20 years, while only Turkish domestic income would be taxed.

This is part of a broader investment package that also includes exporter corporate-tax reductions, Istanbul Financial Center incentives, regional headquarters incentives and a planned one-stop investor office.

What still has to happen?

Before anyone relies on the regime, the key steps are:

  1. A bill must be submitted and passed.
  2. The final text must be published in the Official Gazette.
  3. GİB and other authorities may need to issue implementation guidance.
  4. Advisors will need to test the rules against tax treaties and personal facts.

Until then, the safe wording is announced, proposed, planned and subject to final legislation.

Who may qualify?

Based on the official statement and Anadolu Agency's coverage of the finance minister's later briefing, the likely target group is:

Announced factorPractical meaning
Living abroadPeople relocating to Türkiye from outside Turkey
No Turkish tax residency/taxpayer status in prior three yearsA clean prior period is likely central
Moving to TürkiyeThe measure is framed as a relocation and investment-attraction incentive
Turkish citizens and global expatsAA reports the policy targets both groups, but final law must confirm scope

The phrase "not tax resident/taxpayer" needs final legal wording. A person with prior Turkish filings, long stays, property, a company or employment in Türkiye should get advice before assuming eligibility.

What income may be covered?

The announcement refers to foreign-source income and gains. Possible categories include foreign dividends, foreign bank interest, foreign rental income, foreign pensions, foreign capital gains and some foreign business or employment income.

Do not assume every remote-work payment is foreign-source. Work physically performed in Türkiye, Turkish clients, Turkish companies, local payroll, social-security exposure and permanent-establishment risk all need separate review.

What would still be taxed?

The official statement says Turkish domestic income would be taxed. That can include:

  • Salary from a Turkish employer.
  • Freelance or business income sourced in Türkiye.
  • Rent from Turkish property.
  • Dividends from Turkish companies.
  • Capital gains from Turkish assets.

Comparison table

Country / regimeHeadline treatmentWindowStatus
Türkiye proposed regimeForeign-source income and gains not taxed for qualifying new residents20 yearsAnnounced/proposed
Italy new-resident regimeFlat annual substitute tax on foreign income15 yearsEnacted
Greece non-dom regimeFlat annual tax on foreign income15 yearsEnacted
Portugal old NHRPreferential treatment for certain income10 yearsClosed to most new entrants

This comparison is high-level context only; each regime has its own application process and anti-abuse rules.

Sources and methodology

We used official Turkish sources first, then agency/professional reporting for context. We searched the Official Gazette and GİB for enacted text and did not locate final implementing legislation as of 30 April 2026.

FAQ

Is the 20-year exemption law now?

We have not verified enacted law in the Official Gazette or GİB guidance as of 30 April 2026. Treat it as proposed.

Does this mean zero tax for all foreigners?

No. The announcement is conditional and limited to foreign-source income and gains for qualifying people. Turkish-source income remains taxable.

Does it apply to Turkish citizens abroad?

Anadolu Agency reported that the finance minister framed the measure as targeting Turkish citizens abroad and global expats. Final legislation must confirm the exact scope.

Is the 1% inheritance-transfer tax confirmed?

It appears in the official announcement as part of the proposed package. It still needs final enacted legal text before planning around it.

Should I move before the law is passed?

Do not make an irreversible move solely for the proposed exemption. Your eligibility may depend on timing and final wording.

Disclaimer

This is general information only, not tax, legal, immigration, investment or financial advice. Developing proposals can change materially. Get Turkish and home-country tax advice before making relocation or asset decisions.

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About the author

Türkiye Relocation Tax Desk · Tax research

The tax desk covers Turkish tax residency, foreign-income taxation, double-tax-treaty interpretation and the Türkiye 20-year foreign income exemption. We reference primary sources from gib.gov.tr and mevzuat.gov.tr; treaty texts from the OECD repository. We never offer tax advice; our content helps foreigners scope conversations with their own tax advisors.

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