20-Year Income Tax Holiday for New Residents in Turkey
Published at: 27/05/2026 11:19 am
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The Turkish legislators passed a law declaring a tax exemption for foreign-sourced income and other major tax cuts in Turkey.
Turkish legislators enacted a new boost for foreign investments. Among the new tax rules, there is a 20-year tax exemption on income tax for foreign-sourced income for qualifying new residents.
The new tax rules are the most aggressive changes in the modern history of the country. The parliament cut the corporate tax for certified manufacturers in half, from 25% to 12.5%. The objective of the incentives is to accelerate foreign capital inflow and strengthen Turkey's manufacturing competitiveness.
The most important key points of the amended tax law are:
- A 20-year exemption from individual income tax, if the resident had no domicile or tax residency in Turkey for a minimum of three years before moving there.
- The manufacturing tax rate is reduced from 25% to 12.5%.
- Manufacturing exporters qualify for a 9% corporate tax rate, down from 25%.
- Other exporters receive a 14% rate compared to the previous 25% baseline.
- Tax amnesty.
The country also aims to attract multinational manufacturers relocating from war zones, according to Eciks.org.
How can you become a resident and citizen of Turkey in 2026?
Discus Holdings Ltd started supporting applications for Turkish citizenship in 2017, when the government introduced the Citizenship by Investment Program.
There are four options to become a citizen of Turkey through investment:
- Real estate purchase of at least 400,000 USD.
- Investment of at least 500,000 USD in manufacturing.
- Deposit of at least 500,000 USD in a Turkish bank.
- Creation of at least 50 jobs.
If you wish to become a citizen of the most competitive and peaceful country in the region, contact our local experts for support!