A plain-language guide to Türkiye's 2026 tax exemption program — the legislation, who qualifies, what changes, and what local infrastructure you need to actually operate. Updated as the bill progresses through parliament.
President Erdoğan unveiled an investment and tax package at Dolmabahçe Palace. The headline measures: a 20-year exemption on foreign-source income and capital gains for new tax residents, a 1% flat inheritance and gift tax, a corporate tax cut to 9% for manufacturing exporters and 11% for other exporters, a 100% exemption on IFC transit trade income, and an asset repatriation window with a wealth amnesty window open until 31 July 2027. The package was signed into law as Law No. 7582 on 3 June 2026.
Yes. Law No. 7582 was passed by the Grand National Assembly of Türkiye (TBMM) on 21 May 2026, signed by President Erdoğan on 3 June 2026, and published in the Official Gazette on 4 June 2026. It applies retroactively to anyone who became a Turkish tax resident from 1 January 2026 onward.
A few details shifted during parliamentary review: the reduced corporate tax rate for non-manufacturing exporters was set at 11% (the announcement mentioned 14%). IFC transit trade income now carries a full 100% exemption (vs. the announced 95–100%). A wealth amnesty window was added: foreign assets declared by 31 July 2027 face a 0–5% one-off levy rather than standard rates. A key limitation was also clarified: expenses and costs relating to the exempt foreign-source income are not deductible, and foreign taxes paid on that income are not creditable against Turkish tax.
New tax residents of Türkiye who were not Turkish tax residents in any of the three preceding years. The exemption covers foreign-source income and capital gains for 20 years from the year residence is established.
Standard rule: presence in Türkiye for more than 183 days in a calendar year, or having your centre of life and economic interests there. Once you cross the threshold, worldwide income is normally taxable — but under the new program, foreign-source income is exempted for 20 years.
Foreign-held assets and the income they generate fall under the exemption. However, you remain subject to the source-country rules and any double-taxation treaty Türkiye has with that country. A qualified cross-border tax advisor on both sides is non-negotiable here.
A flat 1% replaces the current progressive rates that go up to 30%. For wealth-holders considering succession planning, this single change is often the biggest practical incentive in the entire package.
To establish and maintain tax residence, yes — substance matters. Symbolic registration without genuine presence does not survive scrutiny by your former country's tax authority. Treat this as a real relocation, not a paper exercise.
If your clients are abroad and you become a Turkish tax resident, your foreign-source professional income falls under the same 20-year exemption regime — provided you meet residency requirements and the income genuinely originates outside Türkiye. The practical net-tax position can drop dramatically compared to high-tax European jurisdictions.
Both routes work depending on your client mix and revenue level. As an individual you register as a freelance professional (serbest meslek erbabı); above certain thresholds or for liability reasons, an LLC structure (Limited Şirket) can make more sense. A Mali Müşavir (tax accountant) will model both options for you.
Türkiye offers work-permit pathways for self-employed foreigners (Çalışma İzni). The exact category depends on your activity, qualifications, and revenue. Application is online via the Ministry of Labour, but in practice an immigration specialist saves weeks.
Yes — that's the typical pattern. Most freelancers retain their existing client book and continue invoicing from Türkiye. Banking, invoicing currency, and VAT treatment need to be set up properly with a local accountant from day one.
9% for qualifying manufacturing exporters. 11% for other exporters. 100% exemption on IFC transit trade income. The general corporate tax for production companies was also halved from 25% to 12.5%. The program rewards specific export, IFC, and HQ activities.
An entity coordinating regional operations — typically procurement, logistics, finance, or shared services — for affiliated companies abroad. The exact qualifying activities will be set in the implementing regulations. Expected to broadly mirror existing OECD frameworks for principal/HQ structures.
The IFC is a purpose-built financial district on Istanbul's Asian side, housing the Central Bank, Borsa Istanbul, and major regulators. New entrants get a 10-year corporate tax exemption layered on top of the broader program. Reuters reported in April 2026 that 40+ companies from Japan, Singapore, Malaysia, Hong Kong and the Gulf are in active relocation discussions, with occupancy set to double to 40,000 workers by year-end.
The "One-Stop Investment Bureau" coordinated by the Presidential Investment and Finance Office consolidates registration, work permits, tax filings, and incentives. With proper local advisors and complete documentation, an LLC setup runs 2–4 weeks. Banking — opening corporate accounts with full KYC for foreign UBOs — is typically the slowest step and runs 4–8 weeks in parallel.
Operating in Türkiye involves local roles and titles that don't have direct equivalents in most European jurisdictions. Here's what each does and when you'll need them.
Company formation, Articles of Association, shareholder agreements, contracts under Turkish law, regulatory filings. The Turkish Bar regulates practice; foreign-qualified lawyers cannot represent you locally.
A regulated profession in Türkiye. Every company is legally required to retain a Mali Müşavir for ongoing bookkeeping, monthly VAT filings, payroll, and routine tax compliance. They are your day-to-day finance interface with the tax authority.
The senior tier of the tax-accountancy profession. Mandatory for tax audits, incentive applications, VAT refunds, and certifying eligibility for tax exemptions. Under the enacted law — 9% / 11% rates, 100% IFC transit trade exemption, wealth amnesty — a YMM is the gatekeeper for actually claiming what you qualify for.
Opening corporate accounts for foreign-owned entities runs 4–8 weeks due to KYC on ultimate beneficial owners. Without an account: no capital injection, no payroll, no supplier payments. Plan banking in parallel with incorporation, not after.
A registered business address is required for incorporation. Options range from coworking (Kolektif House, WeWork Levent, Workhaus) for early-stage teams to flagship space at the Istanbul Finance Centre, Levent, or Maslak for established operations. Free zones offer additional tax benefits for export-focused businesses.
The Turkish executive market is heavily relationship-driven. Top finance, risk, compliance, audit, and engineering talent rarely surfaces through job boards. A specialist search firm with sector focus is the difference between a six-month hiring slog and a six-week one — particularly for senior bilingual roles.
Work and residence permits for foreign staff are governed by the Ministry of Labour with strict quotas (commonly five Turkish employees per foreign hire, sector-dependent). A dedicated immigration specialist is separate from your corporate lawyer and saves weeks on each application.
D&O, cyber, professional indemnity, property, and expat health insurance are typically arranged through local brokers — international carriers usually require a Turkish fronting partner. A specialist broker covering both Turkish and international markets handles the bridging.
The bill was tabled following the 24 April 2026 announcement at Dolmabahçe. It was passed by the TBMM on 21 May 2026, signed by President Erdoğan on 3 June 2026, and entered into force upon publication in the Official Gazette on 4 June 2026. Retroactivity applies from 1 January 2026 — meaning anyone who established Turkish tax residence from that date qualifies from day one.
If you have been considering this, there is no longer a reason to wait. The law is in force. The next steps are: (1) get a cross-border tax opinion covering both your home country and Türkiye, (2) confirm your residency pathway and timeline with a local immigration specialist, (3) engage a Mali Müşavir and a YMM from day one of Turkish residency. The implementing regulations are now published — your advisors can work from the final text. Register here to be matched with vetted local partners.
The law is now in force. Everyone who registered is being contacted with a tailored briefing for their pathway (individual / freelancer / company), the key details of the enacted law including what changed from the announcement, and an introduction to vetted advisors aligned to their specific needs.
An independent information service tracking Türkiye's 2026 tax legislation for international individuals, freelancers, and companies. We monitored the legislative process, published plain-language guides, and now that Law No. 7582 is in force, connect registrants with vetted local advisors to move forward.
No. This site is not legal, tax, or financial advice. It is informational only. Decisions about residency, structure, and timing must be taken with qualified advisors in your home country and in Türkiye, working together. We connect you with vetted local partners — we are not one of them.
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