To receive benefits, you must meet two key conditions:
- become a tax resident of Turkey no earlier than January 1, 2026; have no place of residence or tax obligations in the country during the previous three calendar years.
At the same time, the presence of income from Turkish real estate or securities in the past is not an obstacle to participation. The exemption itself applies exclusively to income and capital gains received from sources outside Turkey, while income from Turkish sources is still taxed according to the general rules.
In addition to the main tax relief, the law introduces a preferential inheritance and gift tax rate of only 1% for program participants for the entire 20-year period. For comparison, the standard rates in Turkey are progressive and reach 10% (for inheritance) and 30% (for donation), depending on the value of the object.
Comments on Marketing Director of Alanya Property Sales Anastasia Kezik: "Previously, it was extremely unprofitable to transfer an apartment to relatives under a donation agreement, since the rate reached 30%. We recommended that our clients not follow the path of donation, but sign a purchase and sale agreement and pay the standard 4% tax on the transfer of ownership.
Another innovation concerns everyone, not just new residents: a window for asset repatriation is open until July 31, 2027(Varlık Barışı, or an amnesty assets). Declared cash, gold, foreign currency, and securities are subject to a 0% to 5% levy. When funds are placed for five years, the rate will be 0%, with a commitment for one year - 4%, while the tax authorities do not check the origin of these assets.
Comments Anastasia Kezik: "It will now become easier to collect the funds necessary to buy an apartment in your account. Previously, banks required explanations of the origin of funds, and a few months ago, legislation required financial institutions to check foreign transfers more strictly. Now, as far as can be judged, the reverse process is underway. Currency can be freely transferred and deposited into accounts. At least there will be no questions from the Turkish side."
Experts have already called the new regime one of the most attractive in the world due to its combination with the citizenship by investment program. As noted by Arda Shardag of Sardag Law Firm, an investor can obtain a Turkish passport in a few months through investments in real estate in the amount of $ 400,000 or more and immediately take advantage of a 20-year tax exemption. This surpasses most European non-dom systems, where similar benefits are usually limited to 10-15 years.
At the same time, the law contains incentives for the corporate sector: a reduction in income tax for producers and farmers to 12.5%, an exemption from payroll tax for employees of qualified service centers, an extension of the benefits of the Istanbul Financial Center until 2047, and an increase in tax deductions for options for startups.
The final rules for the application of the law will be clarified in the by-laws of the Revenue Department (Gelir İdaresi Başkanlığı).
Sources: Official website of the Revenue Department (GİB), EY Global Tax News, IMI Daily
