Published: 4 June 2026

Executive Summary

Türkiye tax incentives 2026 have now entered a new phase with the publication of Law No. 7582 in the Official Gazette on 4 June 2026. The law introduces a wide range of measures aimed at attracting foreign capital, international businesses, regional headquarters, qualified professionals, returning expatriates, technology entrepreneurs and overseas-held assets.

This is one of the most important tax and investment-related legislative developments in Türkiye in recent years. It comes at a time when global investors, multinational groups, family offices, entrepreneurs and internationally mobile professionals are reassessing where they should live, invest, establish regional operations and manage cross-border wealth.

The law appears to form part of a broader policy direction: Türkiye is moving quickly to position itself as a more competitive international business, finance, trade and talent hub. The reforms build on earlier announcements regarding the Istanbul Finance Centre, tax incentives for internationally connected businesses, and Türkiye’s wider ambition to become a regional centre for capital, trade, technology and services.

The most important changes include:

• A new 20-year income tax exemption for certain individuals becoming tax resident in Türkiye, covering foreign-sourced income and gains.
• A 1% inheritance tax rate for those benefiting from the new foreign income exemption.
• New tax incentives for qualified service centres providing services to international group companies.
• A new 95% corporate tax deduction for certain transit trade income, rising to 100% for Istanbul Finance Centre participants and certain eligible industrial zones.
• A 95% corporate tax deduction for qualified service centres, rising to 100% in certain cases.
• A reduced 12.5% corporate tax rate for qualifying production and agricultural production income.
• A new asset repatriation regime allowing certain overseas assets to be brought into Türkiye by 31 July 2027.
• Extension of key Istanbul Finance Centre incentives from 2031 to 2047.
• New measures supporting technology start-ups, digital companies and convertible debt investment structures.

This article follows our previous updates on Türkiye’s emerging tax and investment regime:

New Bill Submitted to Turkish Parliament Introducing Further Tax and Investment Incentive Measures

Türkiye Introduces New Tax Incentive Measures Following Recent Investment Reform Announcements

Turkey’s New Tax & Investment Regime: A Strategic Shift for Expats and Global Businesses in 2026

Why This Law Matters

The new law should not be viewed as a narrow tax amendment. It is better understood as part of a strategic economic positioning exercise.

Recent global developments, including geopolitical uncertainty, regional conflicts, supply chain realignments, pressure on traditional financial centres, and increased mobility of high-net-worth individuals and professionals, have created a new competitive environment between jurisdictions.

Countries are increasingly competing not only for foreign direct investment, but also for:

• corporate headquarters,
• regional management centres,
• financial operations,
• technology entrepreneurs,
• skilled professionals,
• family offices,
• service exporters,
• mobile capital,
• and globally connected individuals.

Türkiye appears to be responding to this global environment by using tax law, investment incentives and institutional infrastructure to make itself a more attractive base for international activity.

This is particularly important when considered alongside the Istanbul Finance Centre, Türkiye’s geographical position between Europe, Asia and the Middle East, its customs union relationship with the EU, its manufacturing capacity, its young workforce and its increasing focus on technology and services.

1. 20-Year Foreign Income Tax Exemption for New Residents

The headline reform for individuals is the introduction of a new income tax exemption for foreign-sourced income and gains.

A new Article 20/D has been added to the Turkish Income Tax Law. Under this provision, individuals who become resident in Türkiye may benefit from a 20-year exemption from Turkish income tax on income and gains obtained outside Türkiye, provided that certain conditions are met.

Basic Conditions

To benefit from the exemption, the individual must:

• be considered resident in Türkiye,
• not have had a residence in Türkiye during the three calendar years before becoming resident,
• not have had tax liability in Türkiye during the three calendar years before becoming resident,
• obtain income or gains from outside Türkiye.

Where these conditions are satisfied, the individual’s foreign-sourced income and gains will be exempt from Turkish income tax for 20 years.

What Income Is Covered?

The law refers broadly to income and gains obtained outside Türkiye. This may potentially include, depending on secondary regulations and interpretation:

• foreign employment income,
• foreign business income,
• foreign investment income,
• foreign dividends,
• foreign interest,
• foreign capital gains,
• foreign rental income,
• foreign professional income.

However, the practical scope will depend heavily on the communiqués and implementation guidance to be issued by the Ministry of Treasury and Finance.

No Annual Tax Return for Exempt Foreign Income

The law provides that income and gains falling within the exemption will not be included in an annual Turkish tax return. If the individual files a tax return for other income, the exempt foreign income will not be added to that return.

No Deduction of Foreign Expenses

Expenses and costs relating to exempt foreign income cannot be deducted against taxable Turkish income.

No Credit for Foreign Taxes

Taxes paid abroad in relation to exempt foreign income cannot be credited against Turkish income tax.

Important Limitation

If the conditions for the exemption are later found not to have been satisfied, the unpaid tax will be treated as tax loss.

This makes eligibility analysis particularly important, especially for individuals who have partial historic connections with Türkiye, passive income in Türkiye, past tax registrations, professional registrations, or temporary stays.

2. Certain Turkish Passive Income Will Not Prevent Eligibility

The law contains an important carve-out.

A person who previously had Turkish tax liability only due to certain Turkish passive income will not be prevented from benefiting from the exemption.

The carve-out covers tax liability arising from:

• Turkish real estate income,
• Turkish movable capital income,
• Turkish capital gains.

This is important because many Turkish citizens and foreign individuals living abroad may own property, bank accounts, shares or other assets in Türkiye.

However, the law does not expressly provide the same protection for active commercial, professional or self-employment tax registrations. This is likely to be one of the most important practical points requiring clarification.

3. 1% Inheritance Tax for Beneficiaries of the New Exemption

The law also amends the Inheritance and Gift Tax Law.

Where a person benefits from the new 20-year foreign income exemption, inheritance tax on assets acquired by inheritance during the exemption period will be applied at 1%.

This is potentially significant for wealth planning and family relocation decisions. Türkiye’s standard inheritance tax rates are progressive, and the introduction of a fixed 1% rate for this group may be an important factor for internationally mobile families.

4. Qualified Service Centres: Türkiye’s Regional Headquarters Strategy

A major corporate reform is the introduction of “qualified service centres” under the Foreign Direct Investment Law.

These centres are designed for companies providing services to related companies or group companies operating in at least three different countries.

Basic Definition

A qualified service centre is a capital company established to provide services to related companies or a group of companies operating actively in at least three different countries, where at least 80% of its annual revenue is obtained from overseas related companies or group companies.

Covered Services

The law lists a broad range of eligible services, including:

• financial consultancy,
• strategic management consultancy,
• risk management,
• cash and liquidity management,
• funding and borrowing transactions,
• investment and capital structure planning,
• budgeting,
• financial reporting and analysis,
• international accounting and compliance,
• audit,
• digital transformation and technology consultancy,
• investment and data analysis,
• legal consultancy,
• brand management,
• human resources,
• training,
• sales and after-sales support,
• technical support,
• research and development,
• external procurement,
• product testing,
• laboratory services,
• coordination and management services relating to these activities.

This structure is clearly aimed at making Türkiye a more attractive base for multinational groups seeking a regional service, support or management hub.

Legal Consultancy Restriction

The law includes a specific rule on legal consultancy. Legal consultancy relating to domestic activities or Turkish law must be obtained from lawyers or attorney partnerships authorised under the Turkish Attorneyship Law.

This is relevant for international groups seeking to establish legal, compliance or advisory functions in Türkiye.

5. Income Tax Exemption for Qualified Service Personnel

The law also introduces a wage tax exemption for qualified service personnel employed in qualified service centres.

The exemption applies to wages up to three times the gross minimum wage.

For qualified service centres operating in certain eligible industrial zones and for qualified service centres operating in the Istanbul Finance Centre, the exemption applies up to five times the gross minimum wage.

The President is authorised to reduce or increase these thresholds within the limits set by the law.

This measure is designed to reduce employment costs for international service centres and make Türkiye more competitive in attracting skilled employees.

6. Transit Trade: 95% and 100% Corporate Tax Deductions

The law significantly expands corporate tax deductions for transit trade.

Transit trade generally refers to the purchase of goods from abroad and their sale abroad without bringing the goods into Türkiye, or acting as an intermediary in foreign-to-foreign goods transactions.

General Rule

For qualifying transit trade income, 95% of the income can be deducted from the corporate tax base.

100% Deduction for IFM and Certain Industrial Zones

The deduction increases to 100% for:

• companies operating in the Istanbul Finance Centre with a participant certificate,
• companies operating in certain industrial zones approved by the President based on foreign investment intensity.

Conditions

To benefit from the deduction:

• the income must be transferred to Türkiye by the deadline for filing the annual corporate tax return for the relevant accounting period,
• the seller and buyer of the goods in intermediary transactions must not be located in Türkiye.

This is a major development for international trading companies, commodity traders, group procurement structures and businesses engaged in cross-border supply chains.

7. Qualified Service Centre Income: 95% and 100% Corporate Tax Deductions

Qualified service centres will also benefit from significant corporate tax deductions.

General Rule

95% of income obtained from overseas activities within the scope of qualified service centre operations may be deducted from the corporate tax base.

100% Deduction in Certain Cases

The deduction may increase to 100% where the qualified service centre operates:

• in the Istanbul Finance Centre with a participant certificate,
• in certain eligible industrial zones approved by the President.

20-Year Duration

This deduction applies for 20 accounting periods starting from the accounting period in which the qualified service centre begins operations.

Repatriation Requirement

The income must be transferred to Türkiye by the deadline for filing the annual corporate tax return for the relevant accounting period.

This is one of the most important components of the new law. It creates a potentially attractive model for multinational groups to centralise management, finance, technology, data, HR, legal coordination and other high-value services in Türkiye.

8. Reduced Corporate Tax Rate for Production and Agricultural Production

The law also amends the Corporate Tax Law in relation to production income.

The corporate tax rate will be applied as 12.5% to income derived exclusively from:

• production activities carried out by companies holding an industrial registry certificate and actually engaged in production,
• agricultural production activities.

Where this reduced rate applies, the same income cannot also benefit from the separate corporate tax reduction under the relevant export-related provision.

Effective Date

This rule applies to income obtained in 2027 and subsequent tax periods. For companies subject to a special accounting period, it applies from the special accounting period starting in the 2027 calendar year.

9. Asset Repatriation Regime Until 31 July 2027

The law introduces a new asset repatriation regime.

Real persons and legal entities may notify banks or intermediary institutions of certain overseas assets by 31 July 2027.

Covered assets include:

• money,
• gold,
• foreign currency,
• securities,
• other capital market instruments.

Transfer Requirement

Assets notified under the regime must be transferred to accounts in Türkiye within two months from the notification date.

Where assets are physically brought into Türkiye, this must be documented through customs declarations.

Domestic Unrecorded Assets

Income and corporate taxpayers may also notify certain assets located in Türkiye but not recorded in their statutory books.

These assets must be deposited with banks or intermediary institutions as of the notification date.

Tax Rates

The standard tax rate is 5%.

However, lower rates apply where the assets are committed to be held in certain investment instruments, including time deposit accounts, government debt instruments, lease certificates or venture capital investment funds:

• 0% if held for at least five years,
• 1% if held for at least four years,
• 2% if held for at least three years,
• 3% if held for at least two years,
• 4% if held for at least one year.

For notifications made between 1 January 2027 and 31 July 2027, these rates will be increased by 0.5 percentage points.

If the notification period is extended beyond 31 July 2027, a further 0.5 percentage point increase will apply.

Protection Against Tax Investigation

Where the conditions are met, no tax inspection or tax assessment will be made in respect of the amounts corresponding to the notified assets.

However, the law makes clear that measures required under other legislation are not affected.

This means that the regime should not be understood as overriding anti-money laundering, banking, customs or other regulatory obligations.

10. Istanbul Finance Centre Incentives Extended to 2047

The law amends the Istanbul Finance Centre Law and extends certain incentives.

The corporate tax deduction period for financial service export income of qualifying financial institutions in the Istanbul Finance Centre is extended from 2031 to 2047.

In addition, exemptions relating to financial activity fees are extended from five years to twenty years.

This is a major signal that Türkiye intends to support the Istanbul Finance Centre as a long-term project rather than a short-term incentive zone.

For further background on Türkiye’s investment positioning and the Istanbul Finance Centre, see our earlier articles:

Turkey’s New Tax & Investment Regime: A Strategic Shift for Expats and Global Businesses in 2026

Türkiye Introduces New Tax Incentive Measures Following Recent Investment Reform Announcements

11. Technology Start-Ups, Digital Companies and Convertible Debt

The law also introduces measures aimed at Türkiye’s technology and start-up ecosystem.

Employee Share Incentives

The tax exemption limit for certain employee share incentives in technology start-ups has been increased from one annual gross salary amount to two times the annual gross salary amount.

The law also shortens the relevant holding periods for shares, making the regime potentially more practical for employees and founders.

Convertible Debt Instruments

For private companies holding a technostartup badge granted by the Ministry of Industry and Technology, conditional capital increases based on convertible debt agreements will be exempt from certain Turkish Commercial Code rules on conditional capital increases.

The Ministry of Industry and Technology, after obtaining the opinion of the Ministry of Trade, will determine the procedures and principles.

This is an important development because convertible debt is a commonly used financing instrument in global venture capital markets. The reform may make Turkish start-ups more familiar and accessible to international investors.

Digital Companies

Companies established and operated by incubation entrepreneurs under the Technology Development Zones Law, and meeting the digital company definition to be determined by the Ministry of Industry and Technology, will be exempt from certain chamber registration fees and dues for up to three years from incorporation.

This is intended to reduce early-stage costs for digital and technology-focused ventures.

12. Public Receivables: Longer Deferral Periods and Higher Unsecured Threshold

The law also amends the Law on Collection Procedure of Public Receivables.

The maximum instalment period for certain deferrals is increased from 36 months to 72 months.

The unsecured deferral threshold is increased from TRY 50,000 to TRY 1,000,000.

This may provide additional flexibility for taxpayers facing temporary liquidity difficulties.

Effective Dates

The effective date provisions are particularly important.

Article 4: 20-Year Foreign Income Exemption

Article 4 applies from the date of publication, but applies to individuals who are deemed to have become resident in Türkiye from 1 January 2026.

This means that the exemption is not limited only to those becoming resident after the publication date. It may also apply to those who became resident in Türkiye from 1 January 2026, provided that the statutory conditions are met.

Articles 7 and 9: Transit Trade, Qualified Service Centre and Minimum Corporate Tax Interaction

Articles 7 and 9 enter into force on the publication date, starting from returns required to be filed from 1 July 2026, and apply to corporate income for tax periods beginning from 1 January 2026.

For companies with special accounting periods, the rules apply to accounting periods beginning from 1 January 2026.

Article 8: 12.5% Corporate Tax Rate for Production Income

Article 8 applies to income obtained in 2027 and subsequent tax periods.

For companies subject to special accounting periods, it applies to income obtained in special accounting periods beginning in the 2027 calendar year and subsequent periods.

Other Provisions

Other provisions enter into force on the publication date.

The Wider Significance: Türkiye’s Economic Model Is Evolving

This law is significant because it reflects a broader shift in Türkiye’s economic strategy.

Türkiye has historically relied on a combination of manufacturing, construction, domestic consumption, tourism, exports and regional trade. The new framework suggests a more targeted effort to attract high-value international activity, including:

• regional headquarters,
• service export platforms,
• international finance,
• transit trade,
• technology entrepreneurship,
• global talent,
• international wealth,
• family capital,
• foreign-held assets.

This does not replace Türkiye’s existing economic model, but it adds a new layer to it. Türkiye appears to be moving towards a model where it competes not only as a production and export base, but also as a platform for global operations, capital management, professional services, technology and cross-border trade.

The timing is also important. In a period where many businesses and individuals are reassessing geopolitical exposure, tax residency, asset location and regional operational structures, Türkiye is moving swiftly to present itself as a serious alternative.

Points Requiring Clarification

Although the law is now enacted, many practical issues remain to be clarified.

Key questions include:

• How will the three-year non-residence and non-tax-liability condition be interpreted?
• What evidence will be required to prove that a person was not resident in Türkiye during the previous three calendar years?
• How will passive or historic Turkish tax registrations be treated?
• Will professional registrations, dormant tax records or short-lived tax registrations affect eligibility?
• How will foreign income be classified for the purpose of the 20-year exemption?
• What documentation will be required for foreign income and gains?
• How will the qualified service centre regime be approved and monitored?
• Which industrial zones will qualify for the enhanced 100% deductions?
• How will the Ministry apply the transfer-to-Türkiye requirement for transit trade and qualified service centre income?
• What forms, notifications and declarations will be used for the asset repatriation regime?

These questions will likely be addressed through secondary legislation, communiqués and administrative guidance.

Conclusion

Law No. 7582 is a major development in Türkiye’s tax and investment landscape.

It introduces long-term incentives for internationally mobile individuals, foreign-sourced income, regional service centres, transit trade, production income, start-ups, Istanbul Finance Centre participants and overseas-held assets.

Taken together, these measures indicate that Türkiye is actively seeking to reposition itself in the global competition for capital, talent, regional headquarters, financial activity and technology entrepreneurship.

The practical impact of the law will depend on how the Ministry of Treasury and Finance and other relevant authorities implement the rules in practice.

Further details are expected to be clarified in the communiqués and secondary regulations to be published by the Ministry in the coming weeks.

CCS Law closely observes these developments and will continue to share further updates as more details become available.

Frequently Asked Questions

What are the new Türkiye tax incentives in 2026?

Türkiye’s new 2026 tax incentives, introduced under Law No. 7582, include a 20-year foreign income tax exemption for eligible new residents, expanded Istanbul Finance Centre incentives, qualified service centre tax deductions, new asset repatriation rules, start-up related incentives and reduced corporate tax treatment for certain production income.

When was Türkiye’s new tax incentive law published?

The law was published in the Official Gazette on 4 June 2026 as Law No. 7582. Certain provisions apply from the publication date, while others apply from 1 January 2026 or from later tax periods depending on the relevant article.

Who can benefit from the 20-year foreign income tax exemption in Türkiye?

Individuals who become resident in Türkiye may benefit if, during the three calendar years before becoming resident, they did not have a residence in Türkiye and did not have Turkish tax liability. The exemption applies to income and gains obtained outside Türkiye, subject to the statutory conditions and future implementation guidance.

Does the 20-year exemption apply to Turkish-sourced income?

No. The exemption is designed for income and gains obtained outside Türkiye. Turkish-sourced income remains taxable in Türkiye under the general rules.

Does foreign income need to be declared in Türkiye under the 20-year exemption?

The law provides that income and gains falling within the exemption will not be included in an annual Turkish tax return. If a person files a tax return for other income, the exempt foreign income should not be included in that return.

Does owning property in Türkiye prevent someone from benefiting from the 20-year exemption?

Not necessarily. The law states that previous Turkish tax liability arising from Turkish real estate income, movable capital income or capital gains will not prevent a person from benefiting from the exemption. However, the exact implementation should be reviewed once secondary regulations are published.

Does having a previous Turkish tax registration prevent eligibility?

This is one of the most important practical questions. The law requires that the person should not have had Turkish tax liability during the previous three calendar years. It also includes a carve-out for certain passive Turkish income. However, the treatment of active, professional, dormant or short-lived tax registrations will need to be clarified in the Ministry’s communiqués and implementation guidance.

From when does the 20-year foreign income exemption apply?

The exemption applies from the publication date of the law, but it covers individuals who are deemed to have become resident in Türkiye from 1 January 2026, provided that the conditions are met.

What is the new inheritance tax advantage?

Individuals benefiting from the new 20-year foreign income exemption will be subject to a 1% inheritance tax rate for inheritances occurring during the exemption period.

What are qualified service centres in Türkiye?

Qualified service centres are capital companies established to provide certain services to related companies or group companies operating in at least three different countries. These centres must obtain at least 80% of their annual revenue from overseas related companies or group companies.

What services can a qualified service centre provide?

Qualified service centres may provide services such as financial consultancy, strategic management consultancy, risk management, treasury and liquidity management, funding, investment planning, budgeting, financial reporting, international accounting and compliance, audit, digital transformation, technology consultancy, data analysis, legal consultancy, brand management, human resources, training, sales support, technical support, research and development, external procurement and related coordination services.

What tax incentives apply to qualified service centres?

Qualified service centres may deduct 95% of qualifying foreign-sourced income from their corporate tax base. This may increase to 100% for qualified service centres operating in the Istanbul Finance Centre or in certain eligible industrial zones, subject to the relevant conditions.

What is the Istanbul Finance Centre tax incentive under the new law?

The new law extends and strengthens Istanbul Finance Centre incentives. Certain qualifying income may benefit from 100% deductions, and the incentive period for relevant financial service export income has been extended from 2031 to 2047.

What is the new transit trade tax incentive?

For qualifying transit trade income, 95% of the income may be deducted from the corporate tax base. This may increase to 100% for companies operating in the Istanbul Finance Centre with a participant certificate and for certain eligible industrial zones.

What is transit trade for the purpose of the new tax incentive?

Transit trade generally refers to purchasing goods from abroad and selling them abroad without bringing them into Türkiye, or acting as an intermediary in foreign-to-foreign goods transactions. The buyer and seller must not be located in Türkiye, and the relevant income must be transferred to Türkiye within the required period.

What is the reduced corporate tax rate for production income?

The law introduces a 12.5% corporate tax rate for income derived exclusively from production activities by companies holding an industrial registry certificate and actually engaged in production, as well as for certain agricultural production income.

When does the 12.5% corporate tax rate apply?

The 12.5% rate applies to income obtained in 2027 and subsequent tax periods. For companies with a special accounting period, it applies to special accounting periods beginning in the 2027 calendar year and later.

What is the new asset repatriation regime?

The new asset repatriation regime allows individuals and companies to notify certain overseas assets, including money, gold, foreign currency, securities and other capital market instruments, to banks or intermediary institutions by 31 July 2027.

What is the tax rate for asset repatriation?

The standard rate is 5%. However, the rate may be reduced to 0%, 1%, 2%, 3% or 4% depending on how long the notified assets are committed to be held in certain eligible investment instruments.

What is the deadline for asset repatriation under Law No. 7582?

The deadline is 31 July 2027, although the President has authority to extend this deadline within the limits set by the law.

Are notified assets protected from tax inspection?

Where the conditions are met, no tax inspection or tax assessment will be made in respect of the amounts corresponding to the notified assets. However, other legal obligations, including regulatory, banking, customs and anti-money laundering requirements, continue to apply.

How does the new law support technology start-ups?

The law introduces measures relating to employee share incentives, convertible debt arrangements for certain technology start-ups and fee exemptions for qualifying digital companies established by incubation entrepreneurs.

What is the significance of convertible debt under the new law?

Convertible debt is widely used in international venture capital transactions. The new law allows certain private companies with a technostartup badge to use convertible debt structures more easily by creating an exemption from some Turkish Commercial Code rules on conditional capital increases.

Why is Law No. 7582 important for foreign investors?

Law No. 7582 is important because it provides new tax advantages for internationally connected business models, regional headquarters, service export structures, transit trade, production activities, start-ups and capital repatriation. It may make Türkiye more competitive for investors considering regional operations.

Why is Law No. 7582 important for expatriates and returning Turkish citizens?

The 20-year foreign income exemption may be highly relevant for expatriates and returning Turkish citizens who are considering relocating to Türkiye while continuing to receive foreign-sourced income. However, eligibility depends on strict statutory conditions and future implementation guidance.

What details are still expected from the Ministry?

Further details are expected in communiqués and secondary regulations to be published by the Ministry of Treasury and Finance in the coming weeks. These are expected to clarify practical issues such as documentation, eligibility, tax registration history, foreign income classification, declaration procedures and implementation of the exemptions.

Disclaimer: This article is intended for informational purposes only and does not constitute legal or tax advice.