Turkey has published Law No. 7582 in the Official Gazette, introducing a new package of tax and investment reforms aimed at attracting foreign capital, international companies, investors, and high-net-worth individuals. The law, accepted on May 21, 2026, was published in the Official Gazette dated June 4, 2026, issue number 33270. It amends several areas of Turkish legislation, including income tax, corporate tax, asset reporting, inheritance tax, public receivables, and the Istanbul Financial Center framework.
20-Year Foreign Income Exemption Introduced
The exemption applies to people who were not domiciled in Turkey and were not subject to full tax liability in Turkey during the previous three calendar years. For those who qualify, certain foreign-sourced income and gains will be exempt from Turkish income tax for 20 years.
The rule applies to individuals deemed to have become resident in Turkey from January 1, 2026. Exempt foreign income will not need to be included in annual Turkish income tax returns, although income generated in Turkey will remain taxable under normal rules.
The law also introduces a 1% inheritance and transfer tax rate for qualifying individuals benefiting from the new exemption during the 20-year period. This makes the reform significant for foreign investors, entrepreneurs, and internationally mobile families considering long-term relocation to Turkey.
Corporate and Service Export Incentives Expanded
Profits earned from buying goods abroad and selling them abroad without bringing them into Turkey, or from acting as an intermediary in foreign-to-foreign goods transactions, may benefit from a 95% corporate tax deduction. In some approved industrial zones and within the Istanbul Financial Center, the deduction can rise to 100%.
The law also introduces Qualified Service Centres into Turkish legislation. These are companies providing services to related companies or groups operating in at least three different countries, with at least 80% of annual revenue generated from abroad.
Eligible centres may provide services including financial consultancy, management consultancy, technology, data analysis, legal support, human resources, research and development, testing, procurement coordination, and technical support.
Employees working in these centres will also receive income tax incentives. In general, salary up to three times the gross minimum wage can be exempt. For qualifying centres in approved industrial zones or the Istanbul Financial Center, the exemption can rise to five times the gross minimum wage.
Asset Reporting and IFC Reforms Included
The law also introduces a new asset reporting programme running until July 31, 2027. Individuals and companies can report certain foreign-held assets, including cash, gold, foreign currency, securities, and capital market instruments.
The standard tax rate is 5%, but this can fall to 0% if reported assets are committed to qualifying investment instruments for at least five years. Lower rates also apply for one, two, three, and four-year commitments.
The Istanbul Financial Center also receives long-term support under the reform. Incentive timelines have been extended from 2031 to 2047, strengthening the IFC’s role in Turkey’s strategy to attract financial institutions, service companies, and regional headquarters operations.
Law No. 7582 also reduces the corporate tax rate to 12.5% for income generated exclusively from manufacturing and agricultural production, effective from the 2027 tax year. The package is a clear attempt to compete more aggressively for international capital, service exports, foreign residents, and regional business structures.
Cameron Deggin Founder & CEO, Property Turkey
Cameron Deggin is Founder and CEO of Property Turkey. A former finance professional and FCCA-qualified accountant, he founded the company in 2001 after recognising Turkey’s investment potential. With more than two decades analysing Turkish real estate, Cameron regularly advises international investors and is quoted by media including the Financial Times and BBC.
By:
Founder & CEO, Property Turkey
Istanbul 
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