In recent years, global economic uncertainty and regional geopolitical tensions have prompted both individuals and businesses to reassess where they live, invest, and operate. From supply chain disruptions to shifting financial hubs, many are actively exploring stable and strategically positioned jurisdictions.
Against this backdrop, Türkiye has announced a comprehensive new tax and investment framework expected to be submitted to Parliament shortly. The proposed reforms signal a clear intention to position the country as a competitive destination for international investors, expatriates, and globally mobile businesses.
A Changing Global Landscape
While different regions continue to navigate economic and political challenges, countries that can offer a combination of market access, tax efficiency, and regulatory clarity are gaining attention.
Türkiye, situated at the crossroads of Europe, Asia, and the Middle East, has increasingly positioned itself as one such jurisdiction. The latest announcement builds on this trajectory, introducing measures designed to attract capital, talent, and international corporate presence.
Key Highlights of the Proposed Tax and Incentive Regime
The newly announced framework introduces several notable incentives:
1. Significant Corporate Tax Reductions for Exporters
One of the most striking measures is the reduction in corporate tax rates:
- Manufacturing exporters: reduced to 9%
- Other exporters: reduced to 14%
This represents one of the lowest effective corporate tax rates for export-driven businesses in the region.
2. Expanded Incentives at the Istanbul Finance Centre (IFM)
The government has also announced an expansion of tax advantages within the Istanbul Finance Centre (IFM), aiming to enhance its global competitiveness.
Key developments include:
- 0% corporate tax on certain transit trade and international trading activities conducted via IFM
- Up to 95% tax exemptions for similar activities outside IFM
- Long-term incentives (up to 20 years) for companies relocating regional headquarters to Türkiye
For a detailed overview of IFM and its strategic role, see our previous article:
https://www.ccs.law/post/discover-the-opportunities-at-the-istanbul-finance-centre-i-fm-with-ccs-law
(Our article on the Istanbul Finance Centre (İFM))
3. 20-Year Tax Advantage for New Residents
A particularly notable measure for expatriates and high-net-worth individuals:
- Individuals who have not been tax residents in Türkiye for the past three years may benefit from:
- No tax on foreign-sourced income for 20 years
- Taxation limited to income generated within Türkiye
Additionally, inheritance tax for this group is expected to be significantly reduced to 1%, which is notably below many global standards.
4. Incentives for Global Companies Relocating Regional Hubs
The framework includes targeted incentives aimed at multinational companies:
- Up to 100% tax deductions on foreign income managed from Türkiye
- Encouragement for relocating regional management centres
- Salary-related exemptions for qualified employees
These measures indicate a clear ambition to position Türkiye as a regional headquarters hub.
5. Full Tax Relief on Certain International Service Exports
Sectors such as:
- Software
- Engineering
- Architecture
- Technology services
may benefit from full tax exemptions on income generated from services provided abroad.
6. Simplified Investment Process via “One-Stop Office”
A new “One-Stop Office” system is expected to streamline:
- Company formation
- Work and residence permits
- Tax and social security registrations
- Investment permits and approvals
This approach aims to reduce administrative friction and accelerate market entry for foreign investors.
7. Asset Repatriation Measures
The proposed regime also introduces mechanisms encouraging the transfer of foreign-held assets into Türkiye at relatively low tax rates, with certain protections against tax scrutiny.
Strategic Positioning: More Than Tax Incentives
While tax efficiency is a key component, the broader message of the reform is strategic positioning.
Türkiye appears to be:
- Strengthening its role as a regional financial and operational hub
- Enhancing integration with global trade and capital flows
- Leveraging infrastructure projects such as the Istanbul Finance Centre
- Competing with established regional centres by offering a differentiated model
At the same time, these developments are being closely monitored by investors assessing long-term stability, legal certainty, and practical implementation.
What Comes Next?
The announced framework is expected to be formalised through legislation in the coming period, with further details to be clarified during the parliamentary process.
As with any major tax reform, the practical application, secondary regulations, and implementation guidelines will be critical in determining its real impact on businesses and individuals.
CCS Law closely observes these developments and will continue to share further updates as more details become available.
Update, 4 June 2026: Law No. 7582 has now come into force, introducing significant new tax and investment incentives in Türkiye. Our latest analysis is available here: Türkiye Tax Incentives 2026: New Law for Investors, Expats and Global Businesses