Tax benefits in Turkey
Moving to Turkey: 20 years of tax exemption on your foreign income
Since 2026, Turkey exempts the foreign-source income of people who settle in the country from income tax for twenty years. Retirees, freelancers working for clients abroad, investors: here is what Law No. 7582 provides, and how we can help you find your home in Istanbul.
Last updated · October 2026
What the law provides
Law No. 7582 was published in the Turkish Official Gazette on 4 June 2026. The implementing rules were set out in General Communiqué No. 333 of 4 July 2026.
If you become a tax resident of Turkey, your foreign-source income and gains are not taxed in Turkey for twenty years from the date you settle. This includes, for example:
- pensions paid from abroad;
- dividends and interest on investments held abroad;
- rent from property located outside Turkey;
- foreign-source salaries and professional fees;
- capital gains realised abroad.
This income does not have to be reported in the Turkish annual tax return.
Who qualifies
The exemption is open to individuals of any nationality who meet two conditions:
- becoming a tax resident of Turkey on or after 1 January 2026, meaning having your home in Turkey or staying more than six months in a single calendar year;
- having had no home in Turkey and no Turkish tax liability during the three preceding calendar years.
Having paid Turkish tax during those three years only on rent, investments or a capital gain does not disqualify you. Having worked in Turkey as an employee, a business owner or a self-employed professional does.
What about the residence permit? Staying in Turkey for more than six months a year means, for a foreigner, holding a valid residence permit. That is a separate application, made to the Directorate of Migration Management, with its own conditions: the tax exemption does not entitle you to a permit, and a permit alone does not secure the exemption. The two files should be prepared together.
What remains taxable
The exemption covers foreign income only. Any Turkish-source income is taxed under the normal rules: a salary paid by a Turkish employer, an activity carried out in Turkey, rent from a property located in Turkey, or a capital gain on the resale of a Turkish property.
Taxes paid abroad on your exempt income cannot be credited in Turkey. Your position in your home country depends on its own rules and on its tax treaty with Turkey.
How to apply
The exemption is not automatic. You must request an exemption certificate (“İstisna Belgesi”) from the tax office:
- by the end of the calendar year in which you settle;
- or, if you settle in November or December, by the end of the following February.
If the tax authorities later find that the conditions were not met, the tax is recovered with penalties and late-payment interest. Have your file checked by a tax adviser before you commit.
Your home in Istanbul
The law does not require any property purchase or minimum investment. But to become a tax resident you need to live in Turkey, and so you need a home here. You can rent or buy: that choice should follow your plans, not the tax rules.
Based in Istanbul since 1997, I help expats and foreigners with their search: choosing a neighbourhood, viewings, negotiation, the lease or the title deed, and settling in.
A 4-day pre-tour to prepare your move
With 30 years of experience, I can support you with your project. We offer a 4-day pre-tour programme in Istanbul or Bodrum, during which we organise:
- your meetings with the tax advisers' offices we work with;
- a meeting with a lawyer;
- viewings of properties to rent or to buy.
You then decide, with all the information in hand. Contact us for the programme and our fees.
This information is general and is not tax or legal advice. It reflects the rules in force in October 2026.