Why Türkiye’s 20-Year Tax Holiday Could Attract Global Investors

Türkiye has unveiled plans for one of the most ambitious tax incentives currently on the global stage: a 20-year exemption on foreign-sourced income for new residents.

The proposal forms part of a broader investment reform package designed to attract not only high-net-worth individuals, but also international professionals and corporate headquarters

While the proposal is not yet law, it is expected to be submitted to parliament in the near future. If implemented as outlined, it would position Türkiye among the most competitive jurisdictions for internationally mobile investors and high-net-worth individuals.

What Is Being Proposed Under Turkiye's Tax Holiday?

This proposed policy would offer 20 years of tax exemption on foreign-sourced income and capital gains for new residents in Türkiye.

This appears to be part of a broader effort by the Turkish government to encourage foreign investment and migration in the country, joining the country’s leading real estate CBI program, one of the leading CBI options currently available.

Under the proposal, 0% tax would apply to:

• Overseas salaries or business income.
  
  
• Dividends from foreign companies.
  
  
• Foreign rental income.
  
  
• Capital gains from assets held abroad.

However, any domestic income earned in Türkiye would be subject to standard taxation rates.

An additional provision states that individuals benefiting from this scheme would also pay a fixed 1% rate on inheritance and gift taxes.

Who Qualifies?

This scheme would only be available to individuals who have not been tax resident in Türkiye for the last three years.

The program is clearly aimed at overseas investors and will likely serve as an added incentive for those who may be considering the country’s CBI program, while also encouraging Turkish citizens currently tax resident abroad to return.

The government has also proposed a limited window in which Turkish citizens and companies may repatriate assets held abroad at a reduced tax rate in order to encourage the channeling of overseas wealth back into the domestic economy.

The inclusion of asset repatriation measures highlights that the policy is as much about bringing capital back into Türkiye as it is about attracting new inflows.

How Does This Compare To Similar Programs

Türkiye is not the first to propose a tax relief scheme like this to attract high-net-worth investors from abroad but is offering some key advantages over and above the programs currently available, which include:

• Greece’s Non-Domiciled Regime: Similar to the Italian program, under this regime, new residents can have their foreign-sourced income taxed at a flat value of €100,000 while Greek income is taxed normally; however, the program requires a minimum investment of €500,000 in Greek real estate to qualify.
  
  
• Portugal’s NHR 2.0: This structure, which replaced the popular NHR tax regime, offers new residents a flat 20% tax rate on Portuguese-sourced income and 0% tax on foreign income for a period of 10 years; however, it is only available to professionals working in specific areas.
  
  
• UAE Taxation System: The UAE does not offer any specific tax incentive schemes but instead offers 0% tax on all national and foreign income to all residents. However, residency is only offered for up to 10 years through RBI programs.

Compared to these programs, the advantages of the new Turkish proposal are clear:

Length

This new program, if realized, would offer a significantly longer period of tax exemption than any of the other programs currently available, nearly double most of them at 20 years.

This extended timeframe is clearly intende to signal the stability and security of the program going forward and the Turkish government's confidence in it.

Citizenship

All the above-mentioned countries offer Residency by Investment, with all except the UAE offering a path to citizenship.

In comparison, Türkiye offers direct Citizenship by Investment through real estate purchase, meaning investors can secure a Turkish passport.

With no language or minimum stay requirements in less time than many RBI programs take to issue a visa. Türkiye is among the highest-regarded CBI programs currently available, as all EU options have closed in recent years.

Why Consider Türkiye?

Beyond tax, Türkiye is positioning itself as a broader lifestyle and investment destination.

The country offers:

• A fast-track route to citizenship, with family inclusion.
  
  
• A dynamic real estate market with relatively accessible entry points.
  
  
• A strategic location bridging Europe, Asia, and the Middle East.
  
  
• A high quality of life, combining modern infrastructure with rich cultural heritage.
  
  
• Extensive visa-free travel opportunities for citizens, offering access to 110 countries globally with no visa.

For investors considering a longer-term relocation strategy, these factors can be just as important as tax efficiency.

If you’re interested in securing Turkish citizenship through real estate investment, contact us to speak with one of our advisors today.