Tax Benefits of Moving to Türkiye: A Guide for New Residents

Türkiye was already attractive for its climate, cost of living and healthcare, and in 2026 the tax benefits of moving to Turkey became a major reason to relocate. In 2026, it also became one of the most interesting tax destinations near Europe. With Law No. 7582, published in the Official Gazette on 4 June 2026 and applying from 1 January 2026, qualifying new residents can benefit from a 20-year income tax exemption on income earned outside Türkiye. They also get a 1% inheritance tax rate during the same period. Add the absence of a wealth tax, modest property taxes, a broad exemption for social security pensions and a network of more than 80 tax treaties, and the picture becomes very favourable for retirees, remote workers, investors and entrepreneurs.

This guide explains how Turkish tax residency works, what the new regime offers, how pensions, property and investments are taxed, and which practical steps to take before you move. It is a general overview, not personal tax advice. Your situation in your home country matters just as much as the Turkish rules, so take advice from a qualified adviser in both countries before you make decisions.

The Turkish Tax System at a Glance

When Do You Become a Turkish Tax Resident?

Turkish tax residency for individuals is based on two simple tests. You are a full taxpayer (resident) if: Official guidance is published by the Turkish Revenue Administration.

• your legal residence (domicile) is in Türkiye, or you intend to settle there; or
• you stay in Türkiye for more than six months in a calendar year. Temporary trips abroad do not interrupt the period.

There are important exceptions. Foreigners who stay in Türkiye for more than six months only to carry out a specific, temporary project, or who are forced to stay because of illness, arrest or another case of force majeure, generally remain non-residents. Foreign businesspeople, scientists, journalists and others who come on a temporary assignment are also covered by special rules.

Residence permits and tax residency are related but not the same. You can hold a residence permit and still be non-resident for tax if you spend most of the year abroad. You can also become tax resident simply by staying more than six months, even on a visit or with a permit for another purpose. If you are considered resident in two countries at once, the tie-breaker rules in the relevant double taxation treaty decide where you are resident for treaty purposes.

Residents are taxed on their worldwide income. Non-residents are taxed only on Turkish-source income, for example rent from a Turkish property or a salary for work carried out in Türkiye.

The 20-Year Exemption on Foreign Income

The headline benefit of the new regime is a 20-year exemption from Turkish income tax on income and gains earned outside Türkiye. It was introduced by Law No. 7582 as a new Article 20/D of the Income Tax Law, as part of a package to attract international talent, wealth and investment.

Who qualifies?

• Individuals — not companies — who become full Turkish tax residents on or after 1 January 2026.
• People who had no domicile and no full tax liability in Türkiye during the three calendar years before they became resident.
• Both foreign nationals and Turkish citizens returning from abroad, as long as they meet the three-year condition.

What is exempt?

The exemption covers income and earnings obtained abroad. This can include, depending on the facts: salaries for work performed outside Türkiye, business income earned abroad, dividends and interest from foreign companies and banks, rent from property abroad, and gains on the sale of foreign assets. Exempt foreign income does not need to be declared on a Turkish tax return.

What is not covered?

• Turkish-source income remains fully taxable: rent from a Turkish property, a Turkish salary, profits of a Turkish business, and income from Turkish securities.
• Expenses related to exempt income cannot be deducted, and foreign taxes paid on exempt income cannot be credited in Türkiye.
• The exemption is personal and time-limited. It lasts 20 years from the year you become resident.

Why it matters

For many people, the exemption means that their foreign income is taxed in Türkiye at 0% for two decades, instead of at progressive rates of up to 40%. This applies especially to remote workers employed abroad, consultants with foreign clients, investors with international portfolios and retirees with private pensions. What you pay overall still depends on your home country. Some countries continue to tax their citizens or former residents, or tax income at the source, so your home rules and the relevant treaty remain essential.

Lower Inheritance Tax for New Residents

Türkiye already had relatively low inheritance tax, with progressive rates and generous treatment of transfers between spouses and to children. Under the new regime, inheritances received by people benefiting from the foreign-income exemption are taxed at a flat 1% during the exemption period. Normally, inheritance rates rise to 10% on the largest estates. Lifetime gifts are not covered by this relief and remain subject to the ordinary gift tax rates.

For families planning their estate, this is a significant change. Succession law, forced heirship rules and the law that applies to property in different countries can still be complex. If you own assets in several countries, a Turkish will for Turkish property and professional advice on cross-border succession are strongly recommended.

How Pensions Are Taxed

Pensions are a key question for retirees, and the Turkish rules are generous.

• Social security pensions. The Turkish Income Tax Law exempts retirement pensions paid by social security institutions. This exemption has been applied to state pensions paid from abroad, such as a foreign state retirement pension, which in many cases are therefore not taxed in Türkiye.
• Private and occupational pensions. Company pensions and private pension plans are not covered by the social security exemption. For new residents who qualify, however, they can fall within the 20-year exemption on foreign income.
• Government service pensions. Pensions paid to former civil servants, police, military personnel and other public employees are usually taxed only by the paying country under double taxation treaties, unless you are also a citizen of Türkiye.

Each treaty has its own wording, and the result depends on the type of pension and your nationality. Check the treaty between Türkiye and the country that pays your pension, and get confirmation from an adviser before you move. Our retirement guide explains the residence options for retirees.

No Wealth Tax and Modest Property Taxes

Türkiye does not levy any national wealth or net worth tax, so the value of your savings and investments is not taxed simply because you own them. Annual property tax is charged by municipalities on the assessed value of land and buildings. It is low by international standards, a fraction of a percent of the assessed value, with higher rates in metropolitan municipalities. Very high-value residences are subject to an additional annual tax above a threshold that is updated every year.

Buying, Owning and Selling Property: The Tax Picture

When you buy

• Title deed fee: 4% of the declared value, legally split equally between the buyer and the seller, although buyers often agree to pay it all.
• VAT: applies to new homes sold by developers. The rate depends on the size and characteristics of the property, and an exemption has been available to non-resident foreign buyers of a first new home paid for in foreign currency, under strict conditions.
• Other costs: the official valuation report, notary and translation fees, lawyer’s fees and compulsory earthquake insurance (DASK).

While you own it

• Annual property tax: low percentage rates on the assessed value, paid in two instalments.
• Rental income: rent from a Turkish property is Turkish-source income and is taxable, even for people who benefit from the foreign-income exemption. There is a small annual exemption for residential rental income, updated every year. Above it, rent must be declared.

When you sell

Gains on the sale of a property that you bought and held for more than five years are generally outside the scope of income tax. If you sell within five years, the gain is taxable at the progressive rates. The purchase cost can be adjusted for inflation when the producer price index has risen by at least 10% over the holding period, which often reduces the taxable gain substantially.

Double Taxation Treaties

Türkiye has signed double taxation agreements with more than 80 countries, including most of Europe, the United Kingdom, the United States, Canada, Russia, the Gulf states and many Asian countries. These treaties decide which country can tax each type of income, settle cases of dual residence, and reduce withholding taxes on dividends, interest and royalties. When a treaty applies, it takes precedence over domestic law. Always read the treaty between Türkiye and your home country alongside the domestic rules of both countries.

Bringing Assets Into Türkiye: The Repatriation Window

The same 2026 law also opened a temporary window, until 31 July 2027, to declare cash, gold, foreign currency, securities and other capital market instruments held abroad or outside the records in Türkiye. Assets declared under the scheme are subject to a low one-off charge, from 0% to 5% depending on how long they are kept in qualifying instruments in Türkiye. Provided the conditions are met, declared assets are protected from tax audits and reassessment. This scheme mainly interests people with existing ties to Türkiye. As with any amnesty, take legal and tax advice before you use it.

What Is Still Taxed in Türkiye

The new regime is generous, but it is not a full tax holiday. Even if you qualify for the foreign-income exemption, expect to pay Turkish tax on:

• salaries for work carried out in Türkiye for a Turkish employer;
• profits of a business operating in Türkiye;
• rent from Turkish property above the annual exemption;
• interest, dividends and gains on Turkish investments, often through withholding tax;
• property taxes and title deed fees;
• VAT and excise duties on goods and services you buy, which are part of everyday prices.

Social Security

Employees of Turkish companies pay social security contributions, as do their employers. Self-employed people register and pay their own contributions. Türkiye has social security agreements with many countries, mostly in Europe. These agreements can let you combine contribution periods for pension purposes and avoid paying contributions in two countries at once.

Foreign residents who are not covered by a scheme at home can usually join the Turkish general health insurance system (SGK) after one year of legal residence, by paying a monthly premium linked to the minimum wage. Before that, private health insurance is needed for most residence permits.

Practical Steps Before and After You Move

1. Check your status in your home country: how and when you stop being a tax resident there, and whether any exit taxes or continuing obligations apply.
2. Confirm that you meet the three-year condition for the Turkish foreign-income exemption.
3. Plan the timing of your move, sales of assets and pension decisions with an adviser.
4. Enter Türkiye legally — on a visa exemption, an eVisa or a visa — and obtain your residence permit.
5. Get a Turkish tax number and open a bank account.
6. Keep evidence of your residence: rental contract or title deed, residence permit, travel records.
7. Ask the Turkish tax office for a certificate of tax residence when you need it for a treaty claim abroad.
8. Keep clear records separating your foreign income from any Turkish-source income.
9. Review your will and estate plan for assets in Türkiye and abroad.

Who Gains Most From the Tax Benefits of Moving to Turkey?

Retirees

Retirees with foreign social security pensions often pay no Turkish tax on them, and private pensions may fall within the 20-year exemption. Combined with lower living costs and good private healthcare, this can make a pension go much further. See our guide to retiring in Türkiye.

Remote workers and freelancers

If you are employed by a foreign company or work for foreign clients, the 20-year exemption can make your foreign earnings tax-free in Türkiye. Check that your work is genuinely performed for foreign clients, and make sure your residence basis is right. The digital nomad guide explains the official programme.

Investors and wealthy families

No wealth tax, a 1% inheritance tax rate for qualifying residents, exempt foreign investment income and a route to citizenship through investment make Türkiye a serious option for internationally mobile families. Our Turkish citizenship guide covers the investment route.

Entrepreneurs

Entrepreneurs can run international businesses from Türkiye. Profits of a Turkish company and Turkish-source income remain taxable, so structure matters. Take advice on where your company should be based and where its management is carried out.

Frequently Asked Questions

Is Türkiye a tax haven?

No. Türkiye has a full income tax system with rates of up to 40% on Turkish-source income. What makes it attractive is the 20-year exemption on foreign income for qualifying new residents, the absence of a wealth tax and the favourable treatment of pensions and inheritances.

How long do I need to live in Türkiye to become tax resident?

You become resident if your legal residence is in Türkiye or if you stay more than six months in a calendar year, with exceptions for temporary projects and force majeure.

Do I have to declare my foreign income in Türkiye under the new regime?

Foreign income covered by the 20-year exemption is excluded from your Turkish tax return. Turkish-source income must still be declared and taxed in the normal way.

I lived in Türkiye two years ago. Can I still benefit?

The exemption requires that you had no domicile and no full tax liability in Türkiye during the three calendar years before you become resident again. If you were resident within that period, you will generally not qualify.

Are foreign pensions taxed in Türkiye?

Pensions paid by social security institutions are generally exempt. Private pensions can fall within the 20-year exemption for qualifying new residents. Government service pensions are usually taxed by the paying country under the relevant treaty.

Does buying property in Türkiye reduce my taxes?

Not directly. Buying a home brings a 4% title deed fee and annual property tax. However, gains on a home held for more than five years are generally not taxed, and property worth at least USD 200,000 can support a residence permit.

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Information checked in October 2026. This guide is a general overview, not tax or legal advice. Tax rules change and depend on your personal situation and on the rules of your home country, so always consult a qualified adviser.