Turkey is preparing a 20-year tax holiday to attract foreign capital

Ankara is launching an ambitious programme designed to make the country an attractive destination for global wealth. As part of the new investment package, it is proposed to introduce a special tax status for newcomers.

According to President Recep Tayyip Erdoğan, individuals who have not held Turkish tax resident status for the past three years will, upon relocation, be fully exempt from Turkish tax on all income and capital gains earned outside the country for two decades. Only profits earned directly on Turkish territory will be subject to tax.

This measure is part of a comprehensive package of incentives aimed at strengthening Turkey’s position as a regional financial hub. The authorities hope to attract entrepreneurs, high-net-worth individuals and skilled professionals seeking stable and favourable conditions for living and managing their assets. Other concessions include a reduction in inheritance and gift tax to 1% for programme participants.

Analysts highlight the exceptional duration of the relief: a twenty-year tax exemption on foreign income is considered one of the most generous offers in international practice. The initiative is complemented by a reduction in corporate taxes for exporting manufacturers, incentives for companies relocating their headquarters to the Istanbul Financial Centre, and simplified mechanisms for repatriating capital from abroad.

Economists predict that such measures could significantly boost the inflow of direct investment and professionals. Turkey already has a successful ‘citizenship by investment’ programme, and the new tax initiative could substantially enhance its competitiveness compared to popular jurisdictions in Europe and the Gulf.