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 14% for other exporters, a 95–100% exemption on transit trade and regional headquarters income, and an asset repatriation window. The package is currently progressing through parliament.
No. The package was announced and is now in the legislative process. Expected ratification is within the coming months. We track the progress and notify everyone registered the day the law goes into effect — that is the entire purpose of this service.
Details — thresholds, qualifying activities, transition rules — can change during parliamentary review. The headline pillars (20-year exemption, 1% inheritance tax, reduced corporate rates) are politically committed and unlikely to be diluted. The implementation regulations are where the practical detail will be set.
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. 14% for other exporters. 95–100% exemption on income from transit trade and qualifying regional headquarters. The standard corporate tax rate remains higher; the program rewards specific export 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 new program — 9% / 14% rates, transit trade exemption, IFC incentives — 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. Standard committee review and floor debate typically run several months. Effective date will be set in the implementing law — we expect retroactivity provisions for the calendar year of enactment.
Preparation and execution are separate. Preparation — selecting advisors, scoping structure, KYC paperwork — takes months and can be done now without commitment. Final structuring decisions wait for the implementing regulations. Registering interest now ensures you're notified the moment the law passes and gets you priority access to vetted advisors before the queue forms.
Everyone registered receives a notification the day the law is signed into effect, with a tailored briefing for their pathway (individual / freelancer / company) and an introduction to vetted advisors aligned to their needs.
An independent information service tracking Türkiye's 2026 tax legislation for international individuals, freelancers, and companies. We monitor the legislative process, publish plain-language guides, and connect registrants with vetted local advisors when the program goes live.
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.
Türkiye Tax Free is operated by Alphaheads AG, Zug, Switzerland. Operational details and contact information are in the Imprint.
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