Written by Attorney Cem Arda Tepe, registered at Istanbul Bar
Turkey introduced a new tax regime targeting foreigners, with significant exemptions for income, inheritance, and corporate taxes. The new rules provide significant benefits to individuals planning to move to Turkey. Specifically, remote workers and digital nomads can benefit from establishing tax residence in Turkey. This article covers the details and application of Article 20/D, which was added by the June 2026 statutory change. Provisions of Article 20/D provide a special regime with a 20-year income tax exemption for individuals. The process for eligibility and acceptance to the regime requires addressing several key issues such as the rules on legal and tax residence in Turkey, which this article covers in detail.
The Process to Qualify as a Tax Resident in Turkey
Foreigners who wish to benefit from the 20-year income tax exemption under the new rules must become tax residents in Turkey. They also must not have been residents or tax residents in Turkey in the last 3 years.
Becoming a tax resident is not strictly dependent on having a residence permit in Turkey, and not having one does not necessarily mean a person's tax residence is outside Turkey. That is why the main rule on tax residency must be reviewed carefully to determine it on a case-by-case basis.
The provisions regarding foreigners who move to Turkey and benefit from tax exemption on their income from outside Turkey are set out in Article 4 of Law Number 7582, published in the Resmi Gazete (Official Gazette) No. 33270, dated 4 June 2026. According to the new provision that is added through Article 4, there is now a new provision in the law, Article 20/D, which states that:
“Those who have their legal residence (or residence, actually) in Turkey will benefit from not paying any foreign income tax for 20 years, provided they were not tax or legal residents in Turkey in the three years prior to the year for which the exemption is applied.”
The key rule here is that this applies to those deemed to have moved to Turkey. That is why the conditions for fulfilling such a requirement should be examined carefully from legal and tax perspectives.
Establishing Legal Residence in Turkey for Tax Purposes as an Individual
The main criteria for having residence in Turkey for the purposes of benefiting from this exemption, as the tax office currently accepts, is to have legal residence registered in Turkey. The most important matter here is determining whether the foreigner has residence in Turkey that meets the tax office's requirements.
The first piece of legislation to look at is the Income Tax Law number 193, dated 31 December 1960, published in the Resmi Gazete (Official Gazette) No. 10,700, dated 6 January 1961.
Article 5 of this law explains which cases are not accepted as establishing residence or relocation. Article 4 explains what constitutes residence in Turkey.
Article 4 of the Income Tax Law sets out two alternative tests. Under the first, a person is treated as settled in Turkey if their ikametgâh — their legal domicile — is in Turkey; the provision expressly defers to Article 19 and the following articles of the Civil Code for what that means.
Art. 4 of the Income Tax Law describes residence, for income tax purposes, as continuous residence in Turkey for more than six months within a calendar year. The same provision explicitly says that temporarily leaving Turkey does not constitute an interruption of the six-month period.
The practice of the tax offices in Turkey, when reviewing whether such criteria are fulfilled, relies on whether the foreigner has resided in Turkey continuously for the past 6 months as their legal residence. Their residence purpose should not be education, travel, or medical purposes.
It is also worth noting that this is relatively new legislation, untested in application, even though the underlying principle of residence in Turkey, as assessed by tax offices, is not new. How it applies in practice needs to be reviewed and followed carefully to avoid any issues. We advise you to consult our accounting and legal teams regarding this matter before relocating to Turkey.
Cases not considered for relocation to Turkey are listed in Article 5 of the same law.
Staying in Turkey for Tourism Does Not Establish Tax Residency
Article 5 states that even if foreigners reside continuously in Turkey for more than 6 months in a calendar year, they will not be considered to have moved to Turkey for the purposes of this law if they are temporarily assigned to work or tasks in Turkey.
This includes those in Turkey for business, science, or research purposes, as well as experts, public officials, media reporters, and others in similar circumstances, along with those visiting for study, healthcare, or tourism.
The application of these principles specifically requires considering what constitutes travel purposes. This requires legal and technical tax interpretation. Given the precedents in this matter, those who come to Turkey and stay here on a tourist visa or a tourist visa exemption will not be considered to have moved to Turkey.
On the other hand, those who obtain a residence permit by buying property, or those who obtain a residence permit for touristic purposes, even though the name suggests otherwise, will be eligible to obtain tax-purposed residence status in Turkey.
This creates a legal dilemma in which the laws of tax offices and immigration offices (Göç İdaresi) clash or, to some extent, contradict each other. That is why we strictly advise seeking professional advice on this matter.
The principle of staying in Turkey for more than 6 months in a year to be considered as a legal resident for tax purposes has specific implications for nationalities that can stay in Turkey for 90 days within a 180-day period without applying for a visa. The application of the rules stated above indicates that such a period will not count towards establishing legal residence in Turkey for tax purposes, since days spent in Turkey for touristic purposes will not count towards the legal residency requirement.
Step-by-step Guide to Establish Tax Residency in Turkey as an Individual
Foreigners who wish to become tax residents in Turkey must first register in Turkey's address registration system. In addition, foreign individuals must remain in Turkey for more than 6 months in a single calendar year. Below, we summarise the requirements for this process.
Obtaining a Residence Permit in Turkey
Based on the rules and principles explained above, foreigners must apply for a residence permit to be registered as tax residents. The residence permit will grant the foreigner the right to reside legally in Turkey. Receiving the residence permit does not necessarily require purchasing property. A regular residence permit that is not tied to a property purchase can be sufficient.
Since this specific exemption applies to individuals, not companies, it is important for individuals to obtain either a rental contract or real estate in Turkey for their residence permit application. We can assist them with this process. If the residence permit route through the purchase of a $200,000 property is preferred by the foreign individual, please see our article on this matter.
We can also open bank accounts for individuals interested in becoming tax residents in Turkey.
Approval Certificate from the Tax Office
A key stage in this process is obtaining the İstisna Belgesi — the Exemption Certificate for Income and Revenues Obtained Abroad — from the tax office, which confirms that this person is eligible for the exemption. It is applied for on a prescribed form, published as Annex 1 to General Communiqué No. 333. If the application is rejected, all taxes due from previous periods must be paid.
Regarding the same-calendar-year application rule, here is an example: for someone who moved to Turkey legally, with legal residence established in early 2026, this person will likely be considered a legal resident before the end of the year. That means they have legally resided in Turkey continuously for six months. In that case, this person must apply for the exemption by the end of December 2026. And please also note that they must not have had legal or tax residence in Turkey in 2025, 2024, or 2023.
