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Foreign-source income exemption (Law No. 7582)

Active Exemption

Turkey · special tax regime

Rate —
Duration 20 years
Prior non-residency 3 years required before applying
Standard top income tax 40.0% Turkey, without the regime

Overview

Regime
Foreign-source income exemption (Law No. 7582)
Country
Turkey
Type
Exemption
Status
Active
Effective from
Jan 1, 2026
Expires on
—

Details

Summary
Twenty-year income tax exemption on qualifying foreign-source income and gains for new Turkish tax residents.
Eligibility
Individuals who become tax resident in Turkey on or after 1 January 2026, with no Turkish domicile or tax liability in each of the three preceding calendar years (limited exceptions for certain Turkish-source passive income).
Benefits
Foreign-source income and gains exempt from Turkish PIT for 20 years; no annual declaration required for exempt income.
Requirements
Apply to the competent tax office for an exemption certificate under Income Tax General Communiqué No. 333; Turkish-source income remains fully taxable.
Limitations
Employment or commercial tax liability in Turkey during the lookback period generally disqualifies; foreign taxes not creditable against Turkish tax on Turkish-source income.
Income types covered
Foreign-source income and gains
Duration details
20 years from becoming resident

View source PwC Turkey 2026; Law No. 7582

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