On April 24, 2026, President Recep Tayyip Erdogan announced a new investment and tax reform package at the Türkiye Century Strong Center for Investment Program in Istanbul. The package includes a proposed 20-year exemption from Turkish tax on foreign-source income and capital gains for eligible individuals relocating to Turkey. The measure has not yet become law and still requires parliamentary approval.
What Has Been Proposed?
Under the proposal, individuals who have not been Turkish tax residents for the past three years would be able to move to Turkey and avoid Turkish tax on foreign-source income for 20 years.
Only Turkish-source income would remain taxable in Turkey. Erdogan also said qualifying individuals would benefit from a 1% inheritance and gift tax rate.
This matters because Turkey currently taxes resident individuals under a progressive income tax system, with rates ranging from 15% to 40%.
Why Turkey Is Introducing This Now
The proposal is part of a wider investment package aimed at making Turkey more attractive to international businesses and investors.
Other measures include:
- Reducing corporate tax for manufacturing exporters to 9%
- Reducing corporate tax for other exporters to 14%
- Expanding tax advantages for companies operating through the Istanbul Financial Center
- Creating a simpler “one-stop office” system for investment procedures
The message is clear: Turkey wants to compete not only as a manufacturing and trade hub, but also as a relocation base for internationally mobile wealth.
How It Compares With Europe’s Tax Regimes
If approved, Turkey’s proposal would be unusually generous in duration.
Italy’s lump-sum tax regime generally runs for up to 15 years. Greece’s non-dom regime also lasts up to 15 years and requires a €100,000 annual flat tax on foreign income. Portugal’s Tax Incentive for Scientific Research and Innovation (IFICI), often referred to as NHR 2.0, offers qualifying individuals a 10-year benefit period.
Turkey’s proposed model appears different because it would offer a 20-year exemption on foreign income, not an annual lump-sum tax. However, the final legal text will determine the real scope.
Why This Could Matter for Investment Migration
Turkey already has a citizenship by investment route, including real estate investment from USD 400,000, subject to a three-year holding requirement.
Until now, Turkey’s citizenship program has mainly been promoted around speed, real estate access, family inclusion, and passport mobility. A long-term foreign income tax exemption could add a stronger tax planning angle for investors who want both residency or citizenship and a lower-tax base for foreign income.
Final Take
Turkey’s proposed 20-year foreign income tax holiday could become one of the most competitive relocation incentives in the market if passed in its current form.
For globally mobile investors, it would place Turkey in direct competition with Italy, Greece, Portugal, and other tax-friendly relocation jurisdictions.
But for now, the correct positioning is simple: Turkey has proposed a major tax incentive for new residents. It is not yet law, and the final details will depend on parliamentary approval and the text of the legislation.
