On May 21, 2026, the Turkish Parliament approved a package of economic stimulus measures that introduced a highly attractive tax incentive for new residents. The centerpiece of the reform is a 20-year exemption from Turkish income tax on qualifying foreign-source income.
The legislation comes at a time of heightened geopolitical uncertainty. The military conflict involving the United States, Israel, and Iran has raised concerns about the long-term stability of traditional financial centers in the Gulf region, including the United Arab Emirates. As a result, many high-net-worth individuals and international investors have begun seeking alternative jurisdictions offering both security and favorable tax treatment.
How Does the Regime Work?
Individuals who become Turkish tax residents on or after January 1, 2026, and who have not held a Turkish residence permit or been subject to Turkish tax residency during the previous three years, qualify for a 20-year exemption from Turkish tax on foreign-source income and capital gains.
The regime does not require a minimum investment, language proficiency, or any particular citizenship. The only requirement is to establish tax residency in Türkiye. This can be achieved through a residence permit, a work permit, or Türkiye's Citizenship by Investment Program.
The exemption applies retroactively from January 1, 2026. Accordingly, individuals who established Turkish tax residency earlier this year automatically qualify and are not required to submit any additional applications or documentation.
With this reform, Türkiye has positioned itself alongside a growing number of jurisdictions competing to attract internationally mobile investors and high-net-worth individuals through preferential tax regimes. These jurisdictions include the United Arab Emirates, Italy, Greece, Cyprus, Switzerland, and several others.
Citizenship by Investment
Türkiye has offered a Citizenship by Investment Program since 2018. The program does not require applicants to reside in the country or demonstrate language proficiency.
Several qualifying investment options are available, with the most popular being the purchase of real estate with a minimum value of USD 400,000. To maintain eligibility, the investment must be retained for at least three years.
Legal Services
Elma Capital has extensive experience assisting international clients with Turkish immigration and investment matters. Our team provides comprehensive legal support throughout the entire process, from selecting and acquiring real estate anywhere in Türkiye to obtaining Turkish citizenship.
If you are considering relocating to Türkiye or taking advantage of its new tax regime, we would be pleased to assist you.