Status: Enacted. Law No. 7582, published in Official Gazette No. 33270 on 4 June 2026. This is no longer a proposal. Implementing guidance from GİB may still add detail — verify your own position with a Turkish tax adviser before acting.
Short answer: Türkiye now exempts qualifying new tax residents from Turkish income tax on foreign-source income and gains for 20 years. It was enacted as Law No. 7582, approved by the Grand National Assembly on 21 May 2026 and published in Official Gazette No. 33270 on 4 June 2026. To qualify you must have had no domicile and no Turkish tax liability in the three calendar years before becoming resident. The exemption reaches back to people deemed Turkish tax resident from 1 January 2026. Turkish-source income stays fully taxable.
Key takeaways
- This is enacted law, not a proposal. Law No. 7582, Official Gazette No. 33270, 4 June 2026.
- The exemption removes Turkish income tax on foreign-source income and gains for 20 years — reported to cover dividends, capital gains, offshore salary and foreign rental income.
- Eligibility condition: no domicile and no Turkish tax liability in the three calendar years before you become Turkish tax resident.
- It applies retroactively to people deemed Turkish tax resident from 1 January 2026, so a move already made this year can fall within scope.
- Turkish-source income remains taxable under the ordinary Turkish income tax schedule. The exemption is about where income arises, not where you live.
- The measure sits in the Income Tax Law at GVK Mükerrer 20/D.
- It forms part of a wider investor package alongside exporter corporate-tax reductions, Istanbul Financial Center incentives and regional headquarters incentives.
- Implementing guidance from GİB may still refine eligibility and procedure. Treaty interaction with your current country of residence is not automatic — it needs testing against your own facts.
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 has happened, and what is still open
The legislative path is complete:
- 24 April 2026 — announced by President Erdoğan at the Century of Türkiye Strong Hub for Investment event.
- 21 May 2026 — approved by the Grand National Assembly.
- 4 June 2026 — published as Law No. 7582 in Official Gazette No. 33270 and entered into force, applying to those deemed Turkish tax resident from 1 January 2026.
What is still genuinely open:
- GİB implementing guidance may add detail on how eligibility is evidenced and how the exemption is claimed on a return.
- Double-tax-treaty interaction. An exemption in Türkiye does not stop your previous country taxing you, and some treaties tie relief to being taxed somewhere. This has to be tested against your own facts.
- Proving the three-year condition — the documentation standard for showing no prior Turkish tax liability is not yet settled in practice.
None of these open points changes the core position: the exemption itself is law and in force.
Who may qualify?
Under the enacted law, the qualifying group is:
| Announced factor | Practical meaning |
|---|---|
| Living abroad | People relocating to Türkiye from outside Turkey |
| No Turkish tax residency/taxpayer status in prior three years | A clean prior period is likely central |
| Moving to Türkiye | The measure is framed as a relocation and investment-attraction incentive |
| Turkish citizens and global expats | AA 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 / regime | Headline treatment | Window | Status |
|---|---|---|---|
| Türkiye (Law No. 7582) | Foreign-source income and gains not taxed for qualifying new residents | 20 years | Enacted 4 June 2026 |
| Italy new-resident regime | Flat annual substitute tax on foreign income | 15 years | Enacted |
| Greece non-dom regime | Flat annual tax on foreign income | 15 years | Enacted |
| Portugal old NHR | Preferential treatment for certain income | 10 years | Closed to most new entrants |
This comparison is high-level context only; each regime has its own application process and anti-abuse rules.
Internal links
- First test residency exposure with the Tax Residency Calculator.
- Then use the Foreign Income Tax Checker.
- Read the regular-rule guide: Does Turkey tax foreign income?.
- Keep the practical move sequence in the Moving to Turkey Checklist.
Sources and methodology
We use official Turkish sources first, then professional reporting for context. The enacted text is Law No. 7582, Official Gazette No. 33270, 4 June 2026. This article was first published on 30 April 2026 while the measure was still a proposal, and was rewritten on 20 August 2026 once the law was verified as published.
- Presidency / Directorate of Communications, official announcement, 24 April 2026: https://www.iletisim.gov.tr/english/haberler/detay/we-are-determined-to-make-turkiye-a-global-center-of-attraction
- Presidency / Directorate of Communications, Turkish transcript, 24 April 2026: https://www.iletisim.gov.tr/turkce/haberler/detay/cumhurbaskani-erdogan-turkiye-yuzyili-yatirim-icin-guclu-merkez-programinda-konustu
- Official Gazette No. 33270, 4 June 2026 — enacted text of Law No. 7582: https://www.resmigazete.gov.tr/
- Income Tax Law, the exemption sits at GVK Mükerrer 20/D: https://www.mevzuat.gov.tr/
- GİB, official tax authority to monitor for guidance: https://www.gib.gov.tr/
- Anadolu Agency, Finance Minister briefing, 27 April 2026: https://www.aa.com.tr/en/turkiye/turkiye-announces-massive-investment-reform-package-finance-minister-says/3919280
- Anadolu Agency Turkish coverage, 27 April 2026: https://www.aa.com.tr/tr/ekonomi/bakan-simsek-vergi-mimarisinde-kuresel-olcekte-en-ust-ligde-olmak-istiyoruz/3919212
- Reuters, secondary news coverage noted in project research: https://www.reuters.com/world/middle-east/turkey-unveils-steep-tax-cuts-boost-competitiveness-investment-2026-04-27/
- PwC Worldwide Tax Summaries, professional summary of current personal tax rules: https://taxsummaries.pwc.com/turkey/individual/taxes-on-personal-income
FAQ
Is the 20-year exemption law now?
Yes. It was enacted as Law No. 7582 and published in Official Gazette No. 33270 on 4 June 2026. It applies to people deemed Turkish tax resident from 1 January 2026. GİB implementing guidance may still add procedural detail, so confirm how to claim it with a Turkish tax adviser before filing.
Does this mean zero tax for all foreigners?
No. The exemption is conditional and limited to foreign-source income and gains for people who had no domicile and no Turkish tax liability in the three calendar years before becoming resident. Turkish-source income remains fully taxable.
Does it apply to Turkish citizens abroad?
Yes. The enacted law turns on tax-residence history, not nationality: what matters is having had no domicile and no Turkish tax liability in the three calendar years before becoming resident. Turkish citizens returning from abroad can qualify on the same test as anyone else.
Is the 1% inheritance-transfer tax confirmed?
Treat it as unconfirmed. It was named in the April announcement, but we have not verified enacted text for the inheritance-transfer rate in the way we have for the 20-year exemption. Do not plan around it without advice.
Should I move now that the law is in force?
The exemption is in force, so the legislative risk that justified waiting is gone. What remains is personal: whether you actually meet the three-year condition, how your home country will treat you after you leave, and how the relevant treaty applies. Those are advice questions, not waiting questions — but they are worth answering before you move, not after.
Disclaimer
This is general information only, not tax, legal, immigration, investment or financial advice. Implementing guidance and treaty practice can still change how this law applies to you. Get Turkish and home-country tax advice before making relocation or asset decisions.