Relocating to Türkiye: We Guide You to the 20-Year Tax Exemption

Since 2026, Türkiye exempts new residents from income tax on their foreign-source income for a full 20 years (Repeated Article 20/D of the Income Tax Code) — regardless of nationality. We advise international private clients on making use of the regime: from assessing eligibility and establishing tax residence to obaining the exemption certificate. In English, German, and Turkish.

Key Facts

20 years tax-free: All income earned outside Türkiye — dividends, interest, foreign rental income, pensions and capital gains — remains exempt from Turkish income tax for 20 years.
Who qualifies: Individuals of any nationality who become Turkish tax residents on or after 1 January 2026 and had neither a residence nor (active) tax liability in Türkiye during the previous three calendar years — including Turkish citizens returningafter lived abroad for at least three years.
Application required: The exemption is not automatic — an exemption certificate must be applied for at the tax office within the applicabe deadline; late applications result in the loss of the benefit.
Additional advantage: Inheritance tax of only 1% on transfers upon death occurring during the exemption period.
Key limitation: Income from work actually performed in Türkiye — including remote work for foreign clients or employers — is treated as Turkish-source income and is not exempt. Other instruments may be available for this profile (notably the 80% service-export deduction under Art. 89/13).

→ For the full legal analysis of the conditions, procedure, and alternatives, read our in-depth article »

Is the Exemption Right for Your Situation?

The regime delivers its full value primarily to individuals with predominantly passive income such asdividends and participation income, investment returns, foreign rental income, pensions and annuities. For entrepreneurs, freelancers, and remote workers who will carry out their work from within Türkiye, the decisive question is how their activities are structured and their income is generated — we assess whether the exemption, the service-export deduction, or a corporate structure is the right instrument for you.

Equally important is the tax perspective of your former country of residence: continuing tax liabilities, exit taxes (such as those applied by Germany and several other jurisdictions), and the residency tie-breaker rules under the applicable double taxation treaty with Türkiye can determine the actual tax benefit of the Turkish exemption. These questions should be addressed before the move, not after.

How We Support You

Initial consultation & eligibility check — your income structure, the three-year look-back, treaty and exit-tax questions: you receive a clear assessment of whether and how the move makes sense from a tax perspective.
Written tax opinion — an analysis of your specific situation under Turkish law, aligned with the tax perspective of your former country of residence.
Implementation — residence permit, establishing tax residency, tax number, and tax registration.
Exemption certificate application — filed on time, fully documented, with support in dealing with the tax office.
Ongoing support — documentation of foreign income, filings for any Turkish-source income, and coordination with your advisors in your former country of residence.

Frequently Asked Questions (FAQ)

I work remotely for a foreign employer / foreign clients — am I exempt? Generally no: if the work is actually performed from within Türkiye, the income is treated as earned in Türkiye and falls outside the exemption — even if the client and the payment are abroad. Other instruments may apply instead, in particular the 80% service-export deduction (Art. 89/13) for certain activities, including software, design, engineering, and data analysis. We clarify what applies to your case in the initial consultation.

Do I need to be or become a Turkish citizen? No. The exemption is tied solely to tax residency — it is open to nationals of any country, as well as to Turkish citizens returning after lived abroad for at least three years abroad.

I already own a holiday property in Türkiye — is that a problem? Generally not: a previous tax liability based solely on rental, investment, or capital-gains income does not necessarily prevent the exemption. What matters is that you had no residence and no further tax liability in Türkiye during the last three calendar years — we verify this against your specific history.

Will I remain taxable in my former country of residence? That depends on the law of your formercountry of residence: whether a residence remains there, how the double taxation treaty with Türkiye determines tax residency, and whether special rules, such as extended tax liability or exit taxes, apply. A clean tax exit isan important prerequisite for the Turkish exemption to deliver its full effect — on request, we coordinate directly with your advisors in your former country of residence.

How long do I have to apply? The certificate must generally be applied for by the end of the calendar year in which you become resident (if you arrive in the last two months of the calendar year: by the end of February of the following year). A late application may result in the loss of the exemption — the application should therefore be part of your relocation planning from day one.

Can the exemption be revoked later? Yes — if the tax office later finds that the conditions were not met, the certificate may be revoked and the tax collected , potentially with penalties and interest. Careful verification and documentation before relying on the exemption are therefore essential.

Four Good Reasons to Choose GEMS Schindhelm

1. Law and tax under one roof.

Our lawyers and tax advisors handle relocation, residence permits, residency setup, and the exemption as one integrated team — no gaps between advisors.

2. We speak your language.

Advice in English, German, and Turkish — including all communication with Turkish authorities and tax offices.

3. Experience with international clients.

We advise individuals and companies from Europe, the US, and beyond on cross-border Turkish matters.

4. Coordination with your advisors at home.

Exit-tax, treaty, and deregistration questions are coordinated directly with your local tax advisors — across Europe also through the country offices of the Schindhelm Alliance.

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Last updated: August 2026. This page is for general information only and does not constitute legal or tax advice.