Since June 4, 2026, Law No. 7582 has been in effect in Turkey. New tax residents of the country do not pay income tax on money earned abroad for 20 years. The eligibility period begins on January 1, 2026, but not everyone will receive it. The condition is that the person had neither a residence nor tax liabilities in the Republic of Turkey for the three calendar years prior to moving. The apartment and residence permit themselves do not affect the benefits; tax residency and a clean tax record are what matter. In this article, we discuss the provisions of the law, how to apply for the benefit, and how it benefits homebuyers.
The phrase "20-year tax holidays in Turkey" does not refer to the abolition of taxes, but rather to a benefit for a certain group of investors.
Law No. 7582, published in the Resmî Gazete on June 4, 2026, under issue number 33270, added Article Mükerrer 20/D to the Income Tax Law. This article applies to individuals with Turkish tax residency (yerleşmiş sayılma in Turkish): all their income from abroad is exempt from income tax for 20 years.
The Ministry of Finance's Tebliğ No. 333 , published in Resmî Gazete No. 33300 on July 4, 2026, explained how to apply the benefit. The law applies to those who were recognized as residents on or after January 1, 2026; those who moved earlier are not eligible for the benefit.
With the same reform, the government launched a capital amnesty, or Varlık Barışı. Until July 31, 2027, previously unreported assets can be declared with a 5% tax rate. If the funds are placed in deposits or government securities for a term of one to five years, the rate will be reduced to 0-4% for declarations filed in 2026 and to 0.5-4.5% for declarations filed between January 1 and July 31, 2027. The program has specific conditions and is not a mandatory step in receiving the 20-year tax break.
The main factor the tax authorities consider is a person's tax history in Turkey. You can qualify for the exemption if you had no residence or tax liabilities in the country for three calendar years prior to the year you were recognized as a resident. The law does allow for one exception, however. Let's say you bought an apartment in Turkey before moving and rented it out, and registered your tax residence solely for this rental. This will not prevent you from receiving the exemption, nor will registration opened solely due to interest, dividends, or capital gains.
Citizenship is irrelevant. If a citizen received a passport through investment but lived abroad for decades, the same rules apply to foreigners. The criteria for tax residency are set out in Article 4 of the GVK ( Income Tax Law No. 193 ). A person is considered a resident of Turkey if they have a residence permit in the country or have lived here continuously for more than six months in a calendar year.
The exemption applies only to income from foreign sources. Profits earned in Turkey are subject to taxation according to law.
| Type of income | Release for 20 years | Comment |
|---|---|---|
| Dividends and interest from foreign banks and companies | Yes | There is no need to submit a declaration in Turkey |
| Capital gains on foreign securities | Yes | Expenses for it are not taken into account |
| Renting out real estate abroad | Yes | Tax paid abroad is not deductible in Turkey. |
| Selling real estate abroad | Yes | The rules of the country where the facility is located continue to apply. |
| Profits of foreign business without a representative office in Turkey | Yes | The benefit does not apply to permanent establishments in Turkey. |
| Renting an apartment in Turkey | No | Taxed at a general rate of 15 to 40%. |
| Salaries and services provided in Turkey | No | Remote work from Turkey requires separate analysis |
| Inheritance during the grace period | Tax 1% | Donations are taxed according to the general scale. |
The tax benefit is calculated for passive foreign income. Remote work from Turkey is not formally eligible: in the examples of Tebliğ No. 333, services performed within the country are considered a Turkish source of income, even if the clients are foreign.
If you're planning to move to Turkey, calculate in advance the calendar year in which you'll most likely become a resident and discuss this with a tax advisor. This year is used to determine both the start date of the tax exemption and the application deadline.
Buying an apartment isn't enough to qualify for the tax benefit. A residence permit with a TAPU (tax deed of purchase) grants the right to live in Turkey, but the ikamet (trade deed) itself doesn't make you a tax resident. Residency is determined by Article 4 of the Civil Code: a place of residence in the country or continuous residence for more than six months per calendar year is required. The role of real estate is different: it simplifies relocation. An apartment provides the basis for a Turkish residence permit and a registration address.
Now about rent. If you rent out an apartment in Turkey, the tax exemption does not apply; you pay the tax as usual. We discuss how to calculate it and what expenses can be deducted in a separate article on rental tax. With an apartment abroad, for example, in your home country, things are different: neither the rent nor the sale are subject to Turkish tax.
And finally, inheritance. While the exemption is in effect, that is, for the full 20 years, inheritance tax in Turkey for recipients is fixed at 1%, instead of the progressive rate from 1 to 10%. Inheritance of real estate is also taxed at this rate. Gifts are not eligible for the exemption; they are taxed at the general rate.
The tax benefit is not automatically applicable: eligibility is confirmed by a tax benefit document (İstisna Belgesi). You must apply for it in person at the Tax Office (vergi dairesi) at your place of registration. Applications are accepted until December 31 of the year in which you became a resident. If this occurred in the last two months of the year, the deadline is extended to the end of February of the following year. The tax benefit is only valid if you submit your application on time; you cannot receive it later. If you violate the conditions, the Tax Office will collect the unpaid tax along with a fine.
The list of supporting documents should be clarified in advance with the Tax Office or a tax consultant. Appendix EK-1 to Tax Inspectorate No. 333 contains the form of the certificate issued by the Tax Office.
What to prepare for your application for İstisna Belgesi:
New Level Group builds and sells liquid real estate in Alanya and remains committed to its clients after the purchase: we assist with obtaining a residence permit , tax identification number, and address registration, as well as renting out the apartment through a management company. Our clients resolve tax issues with specialized consultants, and we help them gather property and residence documentation.
This material describes the general provisions of Law No. 7582 and Decree No. 333 and does not constitute tax advice. Tax residency, source of income, and application deadlines vary depending on the individual's circumstances, so it is recommended to consult a Turkish tax advisor. This benefit does not replace obligations under the laws of the country of citizenship or the rules of double tax treaties. This information is current as of October 2026. Please verify the deadlines and application procedures with current legislation.
If you were already a Turkish tax resident in 2024–2025, no. This exemption is only available to new residents. You must have had no residence or tax obligations in Turkey for the three calendar years prior to moving.
Yes, provided the three-year rule is met. The law determines tax residency, not passport status. If the investor lived abroad before moving and paid taxes there, the general rules apply.
Yes, this is income from a Turkish source, and the tax exemption does not apply. Different rules apply: for example, if the apartment has been owned for more than five years, no sales tax is payable.
No, the law does not set such a condition: the exemption depends on the source of income, and not on where the money is kept.
Temporary departure alone does not necessarily mean loss of tax residency. If a person ceases to be considered a resident of Turkey, their income is subject to the general taxation rules for non-residents.
This material describes the general provisions of Law No. 7582 and Decree No. 333 and does not constitute tax advice. Tax residency, source of income, and application deadlines vary depending on the individual's circumstances, so it is recommended to consult a Turkish tax advisor. This benefit does not replace obligations under the laws of the country of citizenship or the rules of double tax treaties. This information is current as of October 2026. Please verify the deadlines and application procedures with current legislation.
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