The guidance outlined eligibility, application deadlines and tax office review procedures for a 20-year income tax exemption on income and earnings derived abroad.
Turkey’s Revenue Administration published a guidance on 7 September 2026 outlining a 20-year income tax exemption for qualifying individuals who establish residency in the country and earn income and earnings derived abroad.
The guidance set out the eligibility conditions, application deadlines and tax office review procedures under the exemption regime introduced by Law No. 7582.
Tax exemption under Law No. 7582
The exemption was introduced under Article 4 of Law No. 7582, which added repeated Article 20/D to the Income Tax Law. The implementation procedures and principles were set out in Income Tax General Communiqué No. 333.
Under the regime, eligible individuals may benefit from an income tax exemption on income and earnings derived abroad for 20 years, subject to specified conditions.
Eligibility conditions
Individuals must establish residency in Turkey on or after 1 January 2026 to qualify. They must also not have had a residence in Turkey during the three calendar years immediately preceding the year in which they establish residency.
Applicants must meet additional past tax liability requirements. Commercial or wage-earning tax liabilities in Turkey during the previous three calendar years generally disqualify an applicant.
An exception applies to passive income, including real estate capital income, securities capital income and capital gains.
Application deadline
Eligible individuals must generally apply to their authorised tax office for an exemption certificate by the end of the calendar year in which they establish residency.
Those who establish residency during the final two months of a calendar year must apply by the end of the second month of the following year.
Tax office review
The Guide sets out the checks to be carried out by tax offices before an exemption certificate is issued. It also explains the procedures and penalties that apply if it is subsequently determined that the conditions for the exemption were not met.
Scope of the exemption
The exemption applies only to income and earnings derived abroad. Income sourced within Turkey remains subject to the applicable domestic tax rules.
The published “Guide on Tax Exemption for Income and Earnings Derived Abroad” provides further explanations and examples on who may benefit, the conditions for eligibility, where applications must be submitted, the documents required and the procedures applicable after approval.
The published guide provided further clarification on the eligibility, application and review requirements for the exemption, including the documents required and procedures applicable after approval. The exemption applied only to income and earnings derived abroad, while income sourced within Turkey remained subject to the applicable domestic tax rules.
