Law No. 7582 added repeated article 20/D to the Turkish Income Tax Law. The rule entered into force on 4 June 2026 and applies to qualifying individuals treated as resident in Türkiye from 1 January 2026. It is available to foreign nationals and returning Turkish citizens alike. Nationality is not the test, tax residence and the prior three calendar years are.
The income-tax exemption does not itself require a specified investment or annual payment. A foreign national's residence permit, work permit and any citizenship application remain separate legal questions.
Who can qualify?
The person must become resident in Türkiye and must not have had a Turkish domicile or disqualifying Turkish income-tax liability during the three calendar years preceding the year of residence. Prior tax liability arising only from Turkish immovable property income, movable investment income or capital gains does not by itself prevent access.
Residence may arise because the person's legal domicile is in Türkiye or because the applicable residence test is met. The domestic-law position must also be tested against any double tax treaty and the person's continuing ties to the former country.
Which income may be covered?
- Dividends from non-Turkish resident companies
- Interest and qualifying investment returns from foreign accounts and instruments
- Rent from immovable property situated outside Türkiye
- Capital gains from qualifying foreign assets, including foreign shares
- Employment and professional income for work actually performed outside Türkiye
Turkish-source income remains taxable under the ordinary rules. The location of the payer is not enough to determine the source. A consultant working from Istanbul for a foreign customer may still earn Turkish-source professional income.
Declaration, expenses and foreign tax
Qualifying exempt income is not included in an annual Turkish income-tax return. If a return is required for other Turkish-source income, the exempt foreign income is still left out. Related expenses and costs cannot be deducted from taxable Turkish income, and foreign tax paid on the exempt income cannot be credited against Turkish income tax.
The Exemption Certificate and deadline
The exemption is not automatic. The taxpayer must apply to the competent tax office and obtain the Foreign Income Exemption Certificate. The application is generally due by the end of the calendar year in which the person becomes resident. A person who becomes resident in November or December may apply by the end of February in the following year. A late application can permanently defeat the claim.
Related inheritance-tax benefit
A separate provision of Law No. 7582 sets a 1% tax rate for assets passing by inheritance to article 20/D beneficiaries during the exemption period. This is not a full exemption. The location of the assets, the residence of the deceased and beneficiary, and any tax arising in another country must be reviewed separately. See our 1% inheritance-tax guide for the full analysis.
How Türkiye compares in 2026
| Regime | Maximum duration | Annual cost or condition | General scope |
|---|---|---|---|
| Türkiye, article 20/D | 20 years | No annual lump sum and no specified investment condition in the tax exemption | Qualifying foreign-source income and gains |
| Italy, new residents | 15 years | EUR 300,000 annually for persons transferring residence from 1 January 2026 | Foreign income within the substitute-tax election |
| Greece, article 5A | 15 years | EUR 100,000 annually and, generally, a EUR 500,000 investment | Foreign-source income |
| Portugal, IFICI | 10 years | Eligible activity or profession required; special rules and exclusions apply | 20% on qualifying Portuguese work income and, generally, exemption for specified foreign income |
Three situations we see most often
International business owner
Foreign company dividends may qualify, while remuneration for management or services physically performed in Türkiye may not. Corporate residence, permanent establishment, governance and transfer-pricing questions should be reviewed before the move.
Portfolio and property owner
Foreign interest, investment returns and foreign rental income may qualify. Source-country withholding can continue, and the lack of a Turkish foreign-tax credit means the global position must be modelled rather than inferred from the Turkish rate alone.
Founder preparing an exit
A gain on the disposal of foreign shares may fall within the exemption. Timing, the location and asset profile of the company, treaty provisions and any exit tax in the former country can materially change the result.
Points to settle before the move
- Which calendar year will Turkish residence begin?
- Was there any disqualifying Turkish tax liability in the prior three years?
- Will the former country continue to claim residence or impose an exit tax?
- Where are employment, management and professional services physically performed?
- Can the intended immigration status support the planned stay and activity?
- What evidence will the tax office and banks require for residence and source of wealth?
Frequently asked questions
Is the regime limited to foreign nationals?
No. Returning Turkish citizens can qualify if they satisfy the same residence and prior three-calendar-year conditions.
Does buying property automatically produce the exemption?
No. Property ownership, immigration status, tax residence and the article 20/D certificate are separate issues.
Is remote-work income exempt?
Often not. Services physically performed in Türkiye may produce Turkish-source income even where the client or employer is abroad.
Must exempt income be included in a Turkish return?
No. Qualifying exempt foreign income is excluded, including where a return is filed for other taxable income.
Does the regime provide an inheritance-tax benefit?
Yes. A 1% rate applies to assets passing by inheritance to article 20/D beneficiaries during the exemption period. This is not a full exemption, and foreign-country taxes require separate review.
What happens if the conditions were never satisfied?
The certificate may be cancelled and unpaid tax can be assessed with tax-loss penalties and interest. The prior-year review and supporting evidence therefore matter.
Official and comparative sources
- Turkish Revenue Administration, Income Tax General Communiqué No. 333
- Ministry of Treasury and Finance, international investment presentation
- Italian Chamber of Deputies, tax regimes for new residents
- Greek Independent Authority for Public Revenue, incentives for new tax residents
- Portuguese Tax Authority, IFICI guide
Plan your tax exit before becoming resident in Türkiye
LP Legal puts the tax exit from your current country, Turkish residence timeline and Exemption Certificate application on one timetable. Where needed, we work directly with your existing tax and legal advisers.
Discuss your move with us →Prepared for LP Legal by Selahattin Hakan Yıldırım, a member of the Istanbul Bar Association. Last checked: 20 August 2026.
This page provides general information and comparative summaries, not legal or tax advice. The result depends on the person's facts, source-country law and applicable treaties.