Turkey’s 20-Year Zero Tax on Foreign Income — What It Means for Property Buyers in 2026
A new law gives qualifying new tax residents up to 20 years free of Turkish tax on foreign-source income. Here’s exactly who qualifies.
What Law No. 7582 Actually Says
On June 4, 2026, Turkey’s Official Gazette published Law No. 7582, adding Article Mükerrer 20/D to the Income Tax Code (Gelir Vergisi Kanunu). The article gives new Turkish tax residents a 20-year exemption on their foreign-source income — salary, dividends, rental income, capital gains — earned outside Turkey.
This is not a rumor or a campaign promise. It’s a signed, published law, and every major international tax advisory (KPMG, EY) has already issued guidance on it.
Who Actually Qualifies
The exemption is not automatic for every foreigner who buys property here. The core condition: you must not have been a Turkish tax resident in any of the 3 calendar years immediately before you relocate. In practice, this covers:
- Foreign buyers who have never lived or worked in Turkey
- Turkish citizens living abroad (gurbetçi) for 3+ years who return
- Anyone becoming a Turkish tax resident for the first time in years
Buying property and obtaining Ikamet or citizenship does not, by itself, make you a Turkish tax resident — that’s a separate legal test (mainly physical presence, 183+ days/year). Many of our clients hold property and residency here while remaining tax resident elsewhere, and only trigger this exemption if and when they actually relocate.
Why This Matters If You’re Buying Property Here
If you’re an investor who plans to eventually relocate to Turkey — not just buy and hold remotely — this changes the math. Rental income, dividends, or capital gains you earn outside Turkey stay untaxed here for up to 20 years once you qualify. Property income generated inside Turkey (like rent from a Hermava-managed unit) is taxed under normal Turkish rules regardless — this exemption is specifically for foreign-source income.
What It Doesn’t Cover
To be direct about the limits: this is an income tax exemption, not a property tax, VAT, or TAPU transfer tax exemption. Buying property in Turkey still carries the same 2% TAPU transfer tax and annual property tax rules we’ve covered elsewhere. This law also doesn’t change citizenship-by-investment thresholds ($400K) or Ikamet requirements ($200K) — those remain separate legal frameworks.
We looked at Law No. 7582 directly rather than repeating secondhand claims. It’s real, it’s published, and it can matter a lot — but only for buyers who plan to actually relocate and become Turkish tax residents after a genuine 3-year gap. If you’re buying as a remote investor and keeping your tax residency elsewhere, this specific law won’t touch you either way. We’ll always tell you which category you’re in before you assume a benefit that doesn’t apply.
Frequently Asked Questions
No. The exemption is tied to becoming a Turkish tax resident after 3+ years of not being one — not to owning property, holding Ikamet, or citizenship. Those are separate legal tests.
Confirmed. Law No. 7582 was published in Turkey’s Official Gazette on June 4, 2026, adding Article Mükerrer 20/D to the Income Tax Code.
No — it applies to foreign-source income only. Rental income earned from property located inside Turkey is taxed under normal Turkish rules.
Planning a Move, Not Just an Investment?
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