Turkey Introduces 20-Year Foreign Income Tax Exemption — Law 7582 in Force
Turkey has introduced a limited personal-tax change for certain new tax residents. Law No. 7582, published in the Official Gazette on 4 June 2026 (No. 33270), added Article 20/D to the Income Tax Law (GVK No. 193).
Under Article 20/D, individuals who become Turkish tax residents on or after 1 January 2026 may, subject to the statutory tests and circumstances, receive a 20-year exemption on certain foreign-source income. That is not automatic, and it is not a blanket “no tax in Turkey” rule.
Two conditions decide whether anyone actually benefits. First, the individual must meet the law’s three-year non-residency test — buying property or obtaining citizenship by investment does not, by itself, create eligibility. Second, where required, an İstisna Belgesi (exemption certificate) must be obtained; draft GİB material describes application practice, and final implementing rules should still be checked at source. Without those tests — and without genuine tax residency — the exemption does not apply. The categories most often relevant to foreign buyers are foreign pensions, foreign dividends, rental income from property outside Turkey, and foreign investment income.
Where the tests are met, the relief concerns income characterised as foreign-source under Turkish rules. Turkish-source income remains in the normal system: Turkish rent, local salary or business income, property taxes, and company profits are not turned into exempt foreign income by a property purchase in Turkey. Article 20/D applies to natural persons, not to Turkish LTD or A.Ş. companies.
A property purchase in Turkey does not include a tax holiday. Law 7582 can matter for foreign income after a genuine move into Turkish tax residence, but only if residency timing, three-year history, source characterisation and certificate requirements line up. It does not replace due diligence on the property itself, TAPU, or Turkish-source tax, and home-country or treaty rules may still apply to the same income.
Maximos Real Estate is a property operator, not a tax consultancy. This note is a short announcement only — not personal tax advice. Confirm current GİB practice and licensed counsel before relying on any summary.
For the maintained reference — including how foreign versus Turkish-source income is framed, documentation, and practical limits — read the full 20-year foreign income tax exemption guide.
