Moving to Turkey: 20-Year Tax Exemption on Foreign Income

Türkiye (Turkey) introduced a new tax exemption on foreign income for people who move here from 2026 onward. Law No. 7582, published in the Official Gazette (Resmi Gazete) on 04.06.2026, added article 20/D to the Income Tax Law (Gelir Vergisi Kanunu, GVK): a qualifying new resident's income earned outside Türkiye is exempt from Turkish income tax for 20 years, and no Turkish tax return is filed for it.

The exemption has conditions, a strict deadline and limits that are easy to miss. This guide also covers the 1% inheritance tax rate and the asset amnesty. For residence permits, see our citizenship and immigration law page.

Who qualifies for the Turkey tax exemption on foreign income?

Under GVK art. 20/D and Income Tax General Communiqué No. 333 (GVK Genel Tebliği Seri No. 333), you qualify if all of the following apply:

• You are an individual. Companies cannot use the exemption (Communiqué art. 3/10).
• You became a Turkish tax resident on or after 01.01.2026 (Law No. 7582 art. 14).
• You had no domicile and no tax liability in Türkiye in the three calendar years before the year you became resident: for 2026 residents, 2023 to 2025.
• You are still a Turkish tax resident when you apply for the exemption certificate (Communiqué art. 3/2).

Tax residence is not the same as a residence permit. Under GVK art. 4, you are resident if your domicile (ikametgah, the place where you live with the intention of settling) is in Türkiye, or if you stay here continuously for more than six months in a calendar year; temporary trips abroad do not interrupt that stay. GVK art. 5 adds that foreigners who come for a specific temporary assignment or job, or for study, medical treatment, rest (istirahat) or travel, are not resident even after six months. A retiree who spends the winters here without settling may therefore not be resident at all; a non-resident is taxed in Türkiye only on Turkish-source income anyway (GVK art. 6).

Earlier Turkish tax liability that came only from rent, investment income (menkul sermaye iradı) or capital gains does not disqualify you, so a foreigner who declared rent from a flat in Antalya can still qualify. Turkish salary or business income in those three years does disqualify you (Communiqué examples 6 and 7).

What income is exempt, and what is still taxed in Türkiye?

Only income earned outside Türkiye is exempt. Income earned in Türkiye stays taxable, with the usual filing duties (Communiqué art. 3/7).

The services row matters for remote workers. The Communiqué's example is an engineer in Türkiye advising foreign clients: the work is done here, so the fee is taxable. If you buy property in Turkey and rent it out, that rent is also taxed here as usual.

Exempt income is not declared, even if you file a Turkish return for other income, and costs linked to it cannot be deducted from your taxable Turkish income. Foreign tax paid on it cannot be credited against Turkish income tax (GVK art. 20/D, fifth paragraph). If it later turns out that you did not meet the conditions, the untaxed amount is collected with a tax-loss penalty and late-payment interest (Communiqué art. 5).

How do you get the exemption certificate (İstisna Belgesi), and by when?

The exemption is not automatic. You must obtain the exemption certificate for foreign earnings and income (Yurt Dışından Elde Edilen Kazanç ve İratlar İçin İstisna Belgesi) from the competent tax office (Communiqué art. 3/4). The deadline is strict:

• General rule: by the end of the calendar year in which you became a Turkish tax resident.
• Residence starting in November or December: by the end of February of the following year.
• If you became resident in 2026: 31.12.2026, or 28.02.2027 if your residence began in November or December 2026.

A late application is refused even if every other condition is met (Communiqué art. 3/4, example 2). You are then taxed on worldwide income under the general rule (GVK art. 3).

What is the 1% inheritance tax for new residents?

Law No. 7582 also added a paragraph to article 16 of the Inheritance and Gift Tax Law (Veraset ve İntikal Vergisi Kanunu, VİVK). In its words, for persons benefiting from the art. 20/D exemption ("istisnadan yararlananlardan"), the tax rate on transfers of property by inheritance that take place within the exemption period is 1% (VİVK art. 16), instead of the progressive rates of 1% to 10%. What is certain is that the rule covers inheritance only, not gifts. What is not yet clarified is whether the deceased or the heir must be the 20/D beneficiary: the text does not say, commentators differ, and the tax administration had issued no guidance as of 30.09.2026. Check the position with the tax office before relying on the 1% rate.

Which assets Turkish inheritance tax reaches at all is a separate question (VİVK art. 1): property in Türkiye always, foreign assets depending on the nationality and residence of those involved. For the civil-law side, including wills, see our guide on inheritance in Turkey for foreigners.

What is the asset amnesty?

Provisional Article 19 of the Corporate Tax Law (Kurumlar Vergisi Kanunu, KVK) is a separate, optional scheme. Money, gold, foreign currency and securities held abroad can be declared to a Turkish bank or brokerage firm until 31.07.2027 and must be transferred to an account in Türkiye within two months. The tax is 5%, falling step by step to 0% for a commitment to keep the assets for one to five years in term deposits, government securities, lease certificates or venture capital investment funds; declarations from 01.01.2027 pay half a point more. The art. 20/D exemption does not require the amnesty.

Does the exemption change my tax at home?

No. Article 20/D is a rule of Turkish income tax only. Your home country, or the country where the income arises, may still tax it under its own law and any double tax treaty with Türkiye; a German pension, for example, may still be taxed in Germany under the Germany–Türkiye treaty. Because the outcome depends on your residence history and the source of each item of income, individual tax and legal advice, in Türkiye and at home, is recommended before you rely on the exemption.