Türkiye's 1% inheritance tax for new residents

Alongside Türkiye's 20-year exemption for qualifying foreign income sits a second benefit that has received much less attention. If a person benefiting from the regime inherits assets while the exemption period is running, the Turkish inheritance-tax rate is fixed at 1%. For internationally mobile families holding private-company shares, investment portfolios or property in several countries, that rate can be a material part of the decision to move.

The limitation matters as much as the headline. Türkiye has not reduced inheritance tax to 1% for everyone. The special rate applies only to a beneficiary of repeated article 20/D of the Income Tax Law and only to a transfer by inheritance occurring during that person's exemption period.

What does the new rule say?

Law No. 7582 added a specific paragraph to article 16 of the Inheritance and Gift Tax Law. It provides that the rate is 1% where assets pass by inheritance to a person benefiting from the article 20/D income-tax exemption during the period prescribed for that exemption.

The provision entered into force on 4 June 2026. The related article 20/D regime can apply to qualifying individuals treated as resident in Türkiye from 1 January 2026.

The relevant question is not only when the estate opens. The beneficiary must also be benefiting from article 20/D at that time.

Who can use the 1% rate?

The beneficiary must first qualify for article 20/D. In broad terms, this means that the person must:

• become resident in Türkiye,
• satisfy the prior three-calendar-year domicile and income-tax-liability conditions,
• apply on time and obtain the Foreign Income Exemption Certificate, and
• remain within the exemption period when the inheritance occurs.

Nationality is not the decisive test. Foreign nationals and returning Turkish citizens can both qualify if they satisfy the conditions. Our 20-year foreign income tax exemption guide covers the residence and application rules in detail.

Which transfers are covered?

The statute uses the expression “transfer of assets by inheritance”. The special rate is therefore relevant to assets passing on death where a Turkish inheritance-tax charge arises. Depending on the facts, this may include bank accounts, shares in private or listed companies, investment portfolios, real estate, receivables and other property rights.

The 1% figure is a tax rate, not a complete exemption. Filing, valuation, statutory allowances, deductible liabilities and payment deadlines under the Inheritance and Gift Tax Law still require separate analysis. The new provision does not remove the administration of an estate or the need to document the value and source of the assets.

Are lifetime gifts included?

No equivalent special rate is stated for lifetime gifts. The legislation expressly links the 1% rate to inheritance. A lifetime gift of company shares, cash or property can therefore produce a different Turkish tax result from the transfer of the same asset on death.

This distinction matters where a family intends to transfer wealth before moving or shortly after arrival. The order of transactions, valuation date and any foreign gift tax should be modelled before documents are signed.

How does 1% compare with the ordinary tariff?

Türkiye's ordinary 2026 inheritance-tax tariff starts at 1% and rises through progressive bands to 10%. For a qualifying article 20/D beneficiary, the new provision fixes the rate at 1% for an eligible inheritance during the exemption period.

The difference becomes significant for a high-value portfolio, business interest or property estate. The rate is still only one part of the calculation. The taxable base, available allowances, valuation rules and tax payable in other countries can materially change the overall result.

Can foreign assets be taxed in Türkiye?

The answer cannot be determined from the location of the asset alone. The Turkish inheritance-tax scope may depend on the nationality and residence of the deceased and the beneficiary, whether the asset is situated in Türkiye or abroad, and the character of the property.

Türkiye's 1% rate does not prevent another country from imposing estate tax or inheritance tax. Where the same estate is exposed in two jurisdictions, domestic relief, credit mechanisms and any applicable treaty must be checked separately.

Points to settle before the move

• When will Turkish tax residence begin?
• When must the article 20/D certificate application be filed?
• Is an inheritance expected or is an estate already being administered?
• Where are company shares, trusts, foundations, joint accounts and real property located?
• Will leaving the current country trigger estate tax, a deemed disposal or another exit charge?
• Do existing wills and succession agreements work with Turkish conflict-of-laws rules?
• Which records will be required for Turkish filing and valuation?

These questions can be addressed after a move, but the range of available choices may be narrower. Where an estate process is already under way or a family company transfer is expected, the current-country exit and Turkish entry should be reviewed before tax residence changes.

Frequently asked questions

Is every inheritance automatically taxed at 1%?

No. The beneficiary must be benefiting from article 20/D and the inheritance must occur within the 20-year exemption period. The transfer must also fall within the scope of Turkish inheritance tax.

Must the deceased have lived in Türkiye?

The special rate is linked to the beneficiary's article 20/D status. The deceased's residence and nationality, the location of the assets and foreign-country rules still affect the scope and total tax exposure.

What happens if the article 20/D certificate is later cancelled?

If the conditions were never met or cease to be met, assessments may arise in relation to both the income-tax exemption and the connected inheritance benefit. A documented review of the prior three years and a properly prepared application file are therefore essential.

Official sources

• Law No. 7582, 4 June 2026
• Turkish Revenue Administration, inheritance and gift tax