Turkey Introduces a 20-Year Tax Holiday for New Residents

Turkey has approved a new package of tax reforms that could make the country significantly more attractive for foreign investors, expats, and people considering relocation. One of the key changes is a 20-year exemption from tax on foreign-sourced income for new tax residents.

What has changed

The new rules apply to individuals who become tax residents of Turkey and have not had a permanent residence or tax obligations in the country during the previous three calendar years.

For these residents, income earned outside Turkey will be exempt from income tax for 20 years. This may include dividends, interest, rental income from overseas property, capital gains, and other sources of foreign income. These earnings also do not need to be included in the annual Turkish tax return.

At the same time, income earned within Turkey will continue to be taxed under the standard rules. In other words, the benefit does not cancel taxes on Turkish salaries, business income, or other profits generated inside the country.

Inheritance and gift tax

Another important change is the reduction of inheritance and gift tax for eligible new residents to a fixed rate of 1%. This may be especially relevant for high-net-worth investors and families considering Turkey not only as a country for property purchase, but also as a long-term jurisdiction for living, asset management, and inheritance planning.

Asset amnesty

The new package also includes an asset amnesty program. Individuals and legal entities will be able to declare and transfer foreign assets to Turkey, including cash, gold, foreign currency, and securities. According to published explanations, the deadline for declaration is set for July 31, 2027, while the tax rate will depend on the conditions and period of keeping the funds in Turkey.

Why this matters for the real estate market

For property buyers, this may become an additional argument in favor of Turkey. Previously, the tax burden on worldwide income could be a limiting factor for those planning relocation, applying for a residence permit, or obtaining citizenship through investment.

Turkey is now offering a clearer model: foreign-sourced income of new residents may be exempt from taxation for a long period, while domestic taxation remains applicable only to income generated within the country.

This may increase interest in Turkish real estate among investors, entrepreneurs, remote professionals, and families looking not only for a property to buy, but also for a comfortable tax environment for long-term living.

What to keep in mind

The new benefits do not apply automatically to all foreigners. Before relocating, purchasing property, or applying for tax residency, it is important to review the individual situation: previous tax status, sources of income, asset structure, and the conditions for applying the benefit.

For investors, this creates new opportunities, but decisions should be made after consulting a tax specialist. This will help properly assess the benefits and avoid mistakes when arranging residency, filing declarations, and transferring assets.