Published 1 May 2026, updated 7 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, a clean summary table is a practical way to review these updates.
Important note: at this stage, there is no predicted proposal or enactment date for these measures. The incentives listed below reflect proposals and policy signals that have been discussed publicly; they are not yet enacted law.
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). This shows the serious intention of the Turkish government to follow through with the wider tax incentive plan that has been announced by the president and the head of treasury earlier in April.
Turkey's 2026 Tax Incentive Summary Table
| Incentive | Implementation Notes | Primary Target |
|---|---|---|
| 20-Year Foreign Income Tax Holiday | Individuals relocating to Turkey would be 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 |
| 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 (Update: already 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 2–3% tax. No tax inspections would be performed on such transfers. | Business Owners |
| Transit Commerce Reduction | Corporate tax rate for transit commerce reduced to 5%. Within the Istanbul Finance Center, full elimination is expected. | Corporations |
| Inheritance Tax Reduction | Inheritance tax 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 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.
