Introduction
Law No. 7582, published in the Official Gazette on 4 June 2026, introduced significant tax measures aligned with Türkiye’s objective of becoming a more competitive jurisdiction for international investment, regional service centers, financial services, international trade and production activities.
The new rules may be relevant for high-net-worth individuals considering relocation to Türkiye, Turkish entrepreneurs living abroad, multinational groups, Istanbul Finance Center participants, international trading companies and investors planning production activities in Türkiye.
This article summarizes the key tax incentives introduced by Law No. 7582, including their effective dates, main conditions, eligible taxpayers and practical relevance for international investors.
1. 20-Year Income Tax Exemption for Foreign-Source Income of Individuals Relocating to Türkiye
Effective date: The provision entered into force on 4 June 2026 and applies to individuals who are deemed to have settled in Türkiye as of 1 January 2026.
Conditions: The individual must be deemed resident in Türkiye. Before becoming resident, the individual must not have had a domicile in Türkiye during the preceding three calendar years and must not have had income tax liability in Türkiye during the same period. The exemption applies only to income and gains derived outside Türkiye.
Who may benefit? High-income foreign individuals planning to relocate to Türkiye, Turkish citizens living abroad and considering returning to Türkiye, individuals with foreign companies or investment income, and persons intending to live in Türkiye while deriving most of their income from abroad.
Advantages: Foreign-source income and gains may be exempt from Turkish income tax for 20 years. Such income is not required to be included in an annual income tax return; even if a tax return is filed for other income, the exempt income is not included in the return.
Especially relevant for: Entrepreneurs moving from the UK, Europe, Dubai or Gulf countries, digital nomads, remote professionals and individuals with foreign investment portfolios.
2. 1% Inheritance Tax Rate for Certain Inheritances
Effective date: The provision entered into force on 4 June 2026 and applies to inheritances occurring within the exemption period under Article 20/D of the Turkish Income Tax Law.
Conditions: The individual must benefit from the 20-year foreign-source income exemption; the transfer must occur through inheritance and within the relevant exemption period.
Who may benefit? High-net-worth individuals relocating or planning to relocate to Türkiye, foreign or Turkish families carrying out succession planning, and family offices seeking to structure foreign assets with a Türkiye connection.
Advantages: Assets transferred by inheritance may be taxed at a 1% inheritance and transfer tax rate. This may provide a predictable and low-rate tax regime for intergenerational wealth transfers.
Especially relevant for: Family offices, high-net-worth expats and families planning long-term residence and succession in Türkiye.
3. Asset Repatriation Regime
Effective date: The regime entered into force on 4 June 2026. The notification period runs until 31 July 2027. Notifications made between 1 January 2027 and 31 July 2027 are subject to an additional half-point rate increase.
Conditions: Money, gold, foreign currency, securities and other capital market instruments located abroad may be notified to banks or intermediary institutions. Similar assets located in Türkiye but not recorded in statutory books may also be declared. Foreign assets must be transferred to Türkiye or deposited into Turkish bank or intermediary accounts within two months following the notification date.
Who may benefit? Individuals and legal entities holding financial assets abroad, investors planning to relocate to Türkiye, and taxpayers with financial assets in Türkiye that are not recorded in their statutory books.
Advantages: The general tax rate is 5%. If assets are committed to be held in certain investment instruments, the rate may decrease to 4% for at least 1 year, 3% for 2 years, 2% for 3 years, 1% for 4 years and 0% for 5 years or more. If the conditions are met, no tax audit or assessment is expected for amounts corresponding to the declared assets.
Especially relevant for: Individuals seeking to regularize their financial position before relocation to Türkiye, investors considering repatriating foreign portfolios, and expat clients seeking to organize banking, investment or residence/citizenship processes.
4. Corporate Tax Advantage for Qualified Service Centers
Effective date: The corporate tax deduction applies to corporate income for fiscal periods beginning on or after 1 January 2026, starting with tax returns required to be filed as of 1 July 2026. The definition of qualified service center entered into force on 4 June 2026.
Conditions: The company must operate as a qualified service center under Law No. 4875 on Foreign Direct Investments. It must provide services to related companies or a group of companies actively operating in at least three different countries. At least 80% of annual revenue must be derived from foreign related companies or the relevant group of companies, and the income must be transferred to Türkiye by the due date of the corporate income tax return.
Who may benefit? Foreign groups planning to establish a shared service center or regional service center in Türkiye, and companies intending to provide finance, accounting, reporting, legal coordination, HR, training, technical support, R&D coordination or digital transformation services from Türkiye.
Advantages: 95% of income derived exclusively from qualified service center activities may be deducted from the corporate tax base. For qualified service centers operating in the Istanbul Finance Center with a participant certificate or in eligible industrial zones, the deduction may increase to 100%. The incentive may apply for 20 fiscal periods starting from the period in which the qualified service center begins operating.
Especially relevant for: Groups considering moving operations from London, Dubai, Frankfurt or Amsterdam to Türkiye; companies providing intra-group accounting, finance, reporting, compliance and support services; and foreign investors positioning Türkiye as a regional hub.
5. Income Tax Exemption for Qualified Service Personnel
Effective date: The provision entered into force on 4 June 2026.
Conditions: The employee must be employed by a qualified service center and must directly perform services within the scope of the qualified service center, excluding support personnel. A higher exemption threshold may apply in the Istanbul Finance Center or in industrial zones designated by Presidential decision.
Who may benefit? Specialist personnel employed by qualified service centers, finance, accounting, reporting, technology, HR and support teams of companies establishing international operation centers in Türkiye, and qualified foreign or Turkish professionals relocating to Türkiye.
Advantages: The portion of salary not exceeding three times the gross minimum wage may be exempt from income tax. In the Istanbul Finance Center or eligible industrial zones, this threshold may be increased to five times the gross minimum wage. The measure may reduce personnel cost and support Türkiye’s position as a qualified employment center.
Especially relevant for: Companies relocating teams to Türkiye, multinational groups employing highly paid specialists in Türkiye, and investors seeking to reduce the tax impact of expat compensation packages.
6. Istanbul Finance Center Incentives
Effective date: The amendments introduced by Law No. 7582 entered into force on 4 June 2026. The incentive period under provisional Article 1 of the Istanbul Finance Center Law was extended from 2031 to 2047, increasing the relevant period from five years to twenty years.
Conditions: The entity must obtain a participant certificate under the Istanbul Finance Center Law and carry out its activities within the Istanbul Finance Center Zone in accordance with the relevant legislation and secondary regulations. For qualified service center benefits, the relevant qualified service center conditions must also be met.
Who may benefit? Existing or prospective Istanbul Finance Center participants, financial services, fintech, fund management, asset management, family office and international financial services companies, and multinational groups planning to establish a qualified service center in the Istanbul Finance Center.
Advantages: Certain foreign-service income may benefit from up to a 100% corporate tax deduction. For employees of qualified service centers, an income tax exemption may apply up to five times the gross minimum wage. The incentive period under the Istanbul Finance Center regime has been extended until 2047.
Especially relevant for: Fintech companies, fund and portfolio management companies, family offices, international investment and financial service providers, and foreign investors seeking to use Türkiye as a regional financial hub.
7. Transit Trade and International Trading Activities
Effective date: The incentive applies to corporate income for fiscal periods beginning on or after 1 January 2026, starting with tax returns required to be filed as of 1 July 2026.
Conditions: Goods must be purchased from abroad and sold abroad without being brought into Türkiye, or the activity must involve intermediation in foreign purchase and sale transactions. The income must be transferred to Türkiye by the due date of the corporate income tax return. In intermediation activities, both the seller and the buyer of the goods must be located outside Türkiye.
Who may benefit? International trading companies, e-commerce and global sourcing organizations, regional purchasing and sales centers, and companies managing global trading operations from Türkiye.
Advantages: 95% of income derived from these activities may be deducted from the corporate tax base. For entities operating in the Istanbul Finance Center with a participant certificate or in eligible industrial zones, the deduction may increase to 100%. This strengthens Türkiye’s role as an international trade organization center without requiring physical import of goods into Türkiye.
Especially relevant for: Entrepreneurs considering moving Dubai-, Europe- or UK-based trading structures to Türkiye, foreign investors establishing a Turkish company to manage global trade flows, and groups active in e-commerce, sourcing, logistics and trade intermediation.
8. Reduced Corporate Tax Rate for Manufacturing and Agricultural Production Income
Effective date: The reduced rate applies to income generated in 2027 and subsequent taxation periods. For companies subject to a special accounting period, it applies to the special accounting period beginning in the 2027 calendar year and subsequent periods.
Conditions: The company must hold an industrial registry certificate and actually carry out manufacturing activities. The reduced rate applies only to income derived exclusively from manufacturing activities. For companies engaged in agricultural production, only income exclusively derived from such production activities is covered. Income subject to this reduced rate may not also benefit from the export income reduction.
Who may benefit? Companies planning manufacturing investments in Türkiye, manufacturing companies with an industrial registry certificate, companies engaged in agricultural production, and foreign investors seeking to use Türkiye as a production base.
Advantages: A 12.5% corporate tax rate applies to manufacturing and agricultural production income. This provides a significant rate advantage compared to the general corporate tax rate and may improve the after-tax return of production investments in Türkiye.
Especially relevant for: Foreign investors planning production facilities, manufacturing groups intending to export from Türkiye to regional markets, and investment projects focused on agriculture, food, industry and manufacturing.
How FAIR YMM Can Assist
The incentives introduced by Law No. 7582 are not simple measures that can be applied merely by reading the statutory wording. Each investor, income type and corporate structure requires a separate analysis.
FAIR YMM provides tax residency analysis for individuals relocating to Türkiye, expat tax review services, Istanbul Finance Center eligibility analysis, qualified service center feasibility analysis, structuring of Turkish operations for multinational groups, tax due diligence for acquisitions, transfer pricing and intra-group service structuring, and advisory services under double tax treaty frameworks.
Conclusion
Law No. 7582 is designed to strengthen Türkiye’s competitiveness not only as a relocation destination, but also as a jurisdiction for international tax planning, regional service centers, financial services, transit trade and production investments.
If structured correctly, these incentives may make Türkiye more attractive for expats, international investors, family offices, fintech companies, global trading structures and regional operation centers.
This article is prepared for general information purposes only. The application of the incentives must be evaluated on a case-by-case basis, taking into account tax residency, activity type, income category, investment structure, relevant double tax treaties and secondary regulations.
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