What is Turkey’s 20-year tax holiday?

It is a proposed tax policy allowing foreign residents to pay zero tax on foreign-sourced income for up to 20 years.

Who is eligible for the tax exemption?

Individuals who have not been tax residents in Turkey for the past three years and relocate to Turkey may qualify.

Will income earned داخل Turkey be taxed?

Yes, income generated within Turkey will remain subject to Turkish taxation laws.

Is the tax holiday already in effect?

The proposal has been announced but must be approved by the Turkish parliament before becoming law.

Turkey Announces 20-Year Tax Holiday to Attract Foreign Residents and Global Investment

S. A. Jaffri
14 hours ago
2 min read

Turkey has unveiled a landmark tax initiative that could redefine its position in the global economy. In a recent announcement, President Recep Tayyip Erdoğan introduced a proposal offering a 20-year tax exemption on foreign-sourced income for individuals relocating to the country.

This move is more than a fiscal reform—it is a strategic invitation to entrepreneurs, investors, and globally mobile professionals seeking a stable, opportunity-driven base.

A New Chapter for Turkey’s Economic Vision

The proposed tax policy reflects Turkey’s broader ambition to become a central hub for international business and talent. By reducing tax burdens on foreign income, the government aims to attract high-value individuals who can contribute to economic growth, innovation, and cross-border trade.

At a time when many countries are tightening tax rules, Turkey is choosing a different path—one that prioritizes openness, competitiveness, and long-term economic positioning.

What the 20-Year Tax Holiday Offers

At the core of this proposal is a simple but powerful incentive:

Zero tax on income earned outside Turkey for up to 20 years

This means eligible individuals can:

Retain global income without additional Turkish taxation
Benefit from a predictable and long-term tax environment
Structure their finances more efficiently while residing in Turkey

Who Can Benefit?

The program is expected to apply to individuals who:

Have not been Turkish tax residents in the last three years
Establish tax residency in Turkey moving forward

Importantly, income generated داخل Turkey will still be taxed, ensuring alignment with domestic fiscal policies.

Strong Incentives for Businesses Too

The reform is not limited to individuals. Companies—especially those focused on exports—are also set to benefit from significant tax reductions.

Key highlights include:

Reduced corporate tax rates for exporters
Special incentives for manufacturing businesses
Potential exemptions for certain international trade activities

These measures are designed to make Turkey an attractive destination not just for living, but for building and scaling businesses.

Why This Matters Globally

This initiative positions Turkey alongside some of the world’s most competitive tax jurisdictions—but with a notable advantage: duration.

A 20-year tax holiday is exceptionally generous compared to similar programs elsewhere, offering long-term certainty that many investors and professionals actively seek.

As remote work, digital entrepreneurship, and cross-border investments continue to rise, policies like this could significantly influence where people choose to live and operate.