Published 1 May 2026, updated 25 May 2026 · Written by Attorney Cem Arda Tepe, registered at Istanbul Bar
We have created the following table in response to significant interest from both Turkish citizens and foreigners living abroad. Given the high volume of information currently circulating, we are providing a clean summary table as a practical way to review these updates.
Important Note: The tax incentives are implemented with a legislative instrument accepted by the parliament on 21 May 2026. There are still some proposals that are not implemented. We mention them at the end of this article.
Live updates: This page keeps track of the ongoing implementation and releases updates.
Update on 7 May 2026: The service export tax incentive proposal mentioned below is implemented as of 30 April 2026 (Presidential Decree No. 11257). The Turkish government followed through with the wider tax incentive plan in May, which was announced by the president and the head of treasury earlier in April.
Turkey's 2026 Tax Incentive Summary Table
| Incentive | Implementation Notes | Primary Target | Update |
|---|---|---|---|
| 20-Year Foreign Income Tax Holiday | Individuals relocating to Turkey are exempt from tax on foreign-sourced income for 20 years. Eligibility requires no residency in Turkey for the past 3 years; tax would apply only to Turkish-source income. | Expats | The new exemption applies to individuals who moved to Turkey on or after 1 January 2026. |
| Service Export Tax Exemption | The existing 80% income tax exemption on service export income was proposed to increase to 100%. Available to freelancers providing services to clients abroad. | Expats | Implemented on 30 April 2026 following the announcements by the government |
| Wealth & Asset Transfer | Transfer of foreign currency or gold into Turkey at a reduced rate of 0–5% tax. No tax inspections would be performed on such transfers. | Business Owners | The assets must be brought into Turkey within 2 months after they are notified to the authorities. The tax rate is reduced based on a commitment to keep the amount in the bank for a certain period. |
| Transit Commerce Reduction | Corporate tax rate for transit commerce is reduced to 5%. Within the Istanbul Finance Center, full elimination is expected. | Corporations | The relevant income must be transferred to Turkey before the date for submitting corporate tax return statement. |
| Inheritance Tax Reduction | Inheritance tax is reduced to 1% for foreigners relocating to Turkey, substantially below the standard rates. | Diaspora |
Additional Strategic Updates
Beyond the tax table above, two emerging programmes are still under discussion that could significantly affect how foreign professionals and entrepreneurs structure their presence in Turkey:
- Tech Visa: A dedicated visa scheme designed to recruit global talent, making it easier for technology professionals and founders to relocate to Turkey.
- Remote Company Setup: A simplified company formation framework modelled after programmes in Dubai or Delaware, aimed at reducing bureaucratic friction for remote workers and digital entrepreneurs establishing a Turkish entity.
We will continue to monitor legislative developments and update this page as formal proposals are introduced. For questions about how these measures may apply to your specific situation, contact our team for an initial consultation.
You can find our comprehensive article on incorporating a company in Turkey as a foreigner if you are interested in expanding your business.
