What are the changes
Persons who have not had non-dom status and tax obligations in Turkey for three calendar years prior to moving are eligible for a 20-year tax vacation. Foreign income will not need to be indicated in Turkish declarations. Domestic income remains taxable at rates of 15 to 40%. Inheritance and gift taxes for such individuals are reduced from a progressive scale of 1% to a flat rate of 1%.Capital amnesty
The law also introduces the eighth capital amnesty since 2008, allowing the declaration of foreign assets (cash, gold, currency, securities) through Turkish banks. Declarations must be submitted by July 31, 2027, and assets transferred to Turkey within two months. The tax rate depends on the retention period of assets in Turkish instruments: from 0% (for five years) to 4% (for one year). Early withdrawal is subject to a 5% tax rate. The opposition criticizes this measure, arguing that past amnesties allowed illegal funds to enter the country.Corporate benefits
The parliament has halved the corporate tax for manufacturing companies from 25% to 12.5%. Exporters will receive even lower rates: 9% for exporting producers and 11% for other exporters.
For companies operating in the Istanbul Financial Center (IFC), income from transit trade is fully exempt from corporate tax (previously it was 50%). Companies outside the IFC receive a 95% exemption. Income from the export of financial services to IFC remains fully tax-free until 2047.
Aran Hawker, an expert in financial technology, noted that the law was the result of long-term planning. In his opinion, the government wants to take advantage of the situation in the financial centers of the Persian Gulf due to the Iranian conflict. He expects capital inflows not only from the countries of the region, but also from North America, Europe and the UK from people dissatisfied with the political situation in their countries.
Source: IMI
