Law No. 7566 introduces amendments affecting income tax, social security, capital gains, and UEFA-related reliefs for 2025–2026.
Turkey’s Law No. 7566, adopted on 4 December 2025 and published in the Official Gazette on 19 December 2025, introduces new rules for 2025–2026, covering residential rental income, capital gains, social security contributions, and UEFA-related tax reliefs.
Implementation is under presidential authority.
Turkey has published Law No. 7566, an omnibus law amending multiple tax and social security rules.
Key measures:
- Capital gains: Exemption is removed for units in funds sold only to qualified investors, not traded on TEFAS, and without portfolio limits. Units in funds holding at least 51% Borsa İstanbul-traded shares continue to qualify for exemption if held over one year.
- Advance tax: The fourth provisional tax period is reintroduced, requiring quarterly advance tax declarations for 3, 6, 9, and 12-month periods, starting October–December 2025.
- Residential rental income: Housing-loan interest is no longer deductible for residential properties from 1 January 2025. The 5% acquisition-cost deduction for one dwelling over five years remains. Deductions for non-residential property and other leased assets continue.
- Social security contributions: Employer contributions to long-term insurance (disability, old-age, death) increase from 11% to 12%, while employee contributions remain at 9%. Young entrepreneur premium support is removed, and the general employer premium incentive for non-manufacturing sectors falls from 4 points to 2 points. The earnings ceiling for contributions rises from 7.5× to 9× the monthly minimum wage.
- UEFA events: Participating teams and non-resident entities involved in the 2026 UEFA Europa League Final, 2027 UEFA Conference League Final, and 2032 UEFA European Championship in Türkiye are exempt from corporate tax and withholding tax. Related goods and services are VAT-exempt, with input VAT refunds allowed.
Other amendments include:
- Updates to fees for trade authorisations, professional licences, precious metals operations, and aviation activities.
- Adjustments to real estate tax valuations for 2026–2029.
- Tuition fee determination for higher education linked to producer and consumer price index changes.
- Temporary relief for expired water meters under inspection or replacement until 31 December 2028.
- Construction authorisation in the Central Black Sea Free Zone for industrial, commercial, and service activities.
- Social Insurance Law revisions increasing contributions, adjusting calculation bases, adding deduction mechanisms, and transitional provisions.
- Temporary increase in the 2025 net borrowing limit by TRY 595 billion.
Income tax and capital gains changes generally apply from the 2025 tax period and social security measures from 2026.
