A new tax regulation encouraging settlement in Turkey has come to the agenda with the package approved by the Turkish Parliament. The regulation allows Turkish citizens living abroad and foreigners settling in Turkey to benefit from an income tax exemption for up to 20 years on certain earnings and revenues obtained from abroad.
Announced alongside President Recep Tayyip Erdoğan’s call for citizens abroad to settle in Turkey, this headline attracted attention especially due to the scope and conditions of the tax advantage. The regulation is presented as part of a broader package supporting return and settlement in Turkey with economic incentives.
Three-Year Residency Requirement
According to a key article of the package, individuals benefiting from the exemption must not have been residents in Turkey or taxpayers in Turkey during the previous three calendar years before settling. Those who meet this condition can apply the income tax exemption on their foreign-sourced earnings and revenues for the specified period.
As it stands, the regulation does not mean "everyone coming from abroad is exempt from tax on all income." The scope of the exemption will depend on conditions such as the person’s settlement status in Turkey, previous tax obligations, and whether the income is foreign-sourced.
Deadlines for Foreign Assets
The package also includes provisions regarding the declaration and transfer of foreign assets to Turkey. According to reports, the regulation grants a deadline until July 31, 2027, for certain asset declarations.
The new tax package aims to make Turkey a more attractive settlement and investment center for citizens abroad and foreign investors. However, the details of implementation will become clearer with secondary regulations and administrative explanations.
