Starting in 2026, individuals who become Turkish tax residents for the first time can obtain an exemption from income tax on certain types of foreign-source income for a period of 20 years (Article Mükerrer 20/D of the Turkish Income Tax Law) — regardless of nationality. Zilver Law Firm supports private clients at every stage: from checking eligibility and establishing tax residency to obtaining a residence permit and filing the application for the exemption certificate.

The Essentials at a Glance

• 20 years tax-free. Certain types of foreign-source income — dividends, interest, foreign rental income, pensions, and capital gains from the disposal of assets — are exempt from Turkish income tax for 20 years.

• Who qualifies. Individuals of any nationality who become Turkish tax residents starting January 1, 2026, and who were neither tax resident in Turkey nor subject to active tax liability there during the preceding three calendar years. This also applies to returning Turkish citizens who have lived abroad for at least three years.

• The exemption is not automatic. An application for the exemption certificate must be filed with the tax office within the statutory deadline — meeting this deadline is the decisive condition.

• Additional benefit. Inheritance tax during the exemption period is only 1%.

• Important limitation. Income from activity actually carried out from Turkey — including remote work for foreign clients performed from home — is treated as Turkish-source income and does not fall under the exemption. In such cases, another relief may apply instead — the 80% deduction for service exports (Article 89/13 of the Income Tax Law).

Is the Exemption Right for Your Situation?

The exemption is particularly attractive for individuals whose income is predominantly passive: income from equity holdings, investment income, foreign rental income, and pensions. For entrepreneurs, freelancers, and remote workers who plan to carry out their activity from Turkey going forward, the decisive factor is how the activity and income structure are set up — this is where we assess whether the exemption itself, the service-export deduction, or a separate corporate structure is the right fit.

Equally important is the tax situation in your current country of residence: continuing tax obligations, exit taxation, and the residency rules under the double taxation treaty with Turkey — these determine how much of the Turkish exemption actually remains after all taxes are accounted for. These questions should be resolved before the move, not after.

Residence Permit: What You Need for Legal Residency in Turkey

The tax exemption only works if you hold a lawful residence status — a residence permit (ikamet izni) becomes necessary once you have stayed longer than 90 days within a 180-day period; otherwise, overstaying can result in fines, deportation, and an entry ban. Below are the main routes to a residence permit, depending on the client's specific situation.

Short-term residence permit (kısa dönem ikamet izni) — the basic option, available on several grounds: property purchase, language study, medical treatment, participation in internships under government programs, and other verified purposes of stay beyond tourism. Since 2026, renewals of residence permits based solely on tourism are being systematically refused — the migration authorities require a clearly verified purpose of stay. Requirements:

• proven income — generally at least 1.5 times the Turkish minimum wage per month (around 42,000 Turkish lira, i.e., roughly $700–900 USD per person), evidenced by bank statements covering the last 3 months, pension certificates, or an employer's letter;

• health insurance;

• a confirmed address in Turkey — applications are automatically rejected if the address is located in a district where the share of foreign residents exceeds 25% of the registered population; this should be checked in advance, before signing a lease or purchasing property;

• translation of all foreign-language documents into Turkish by a sworn translator;

• a fully digital application submitted through the e-ikamet portal.

Property-based residence permit — a more stable and predictable option for those planning long-term residence. As of 2026, the minimum value of residential property required for this basis is $200,000 USD, which must be officially recorded on the title deed (tapu) and confirmed by a Foreign Exchange Purchase Certificate (DAB) — an appraisal report alone is no longer sufficient.

Family residence permit (aile ikamet izni) — available upon marriage to a Turkish citizen, or to a foreign national who lawfully holds a residence or work permit in Turkey. The sponsoring spouse must demonstrate a stable monthly income of at least the minimum wage, plus an additional one-third of the minimum wage for each dependant.

Digital Nomad Visa — a separate category for those who continue working for foreign clients or employers while residing in Turkey; particularly relevant for clients whose income does not qualify for the 20-year tax exemption because the activity is actually carried out from Turkey.

How We Support You

1. Initial consultation and eligibility check — analysis of your income structure, the three-year look-back, double taxation treaty questions, and exit taxation from your previous jurisdiction. You receive a clear assessment of whether the move makes sense from a tax perspective.

2. Tax Opinion — a written analysis of your specific situation under Turkish law, coordinated with the tax position of your country of previous residence.

3. Implementation — residence permit (selecting the most suitable basis for your situation), establishing tax residency, obtaining a tax number, and tax registration.

4. Application for the exemption certificate — filed on time, with a complete set of documents, with support throughout communication with the tax office.

5. Ongoing support — documentation of foreign-source income, tax returns for Turkish-source income, and coordination with your advisors in your previous country of residence.

Frequently Asked Questions

I work remotely for a foreign employer / foreign clients — am I exempt from tax? Generally, no: if the activity is actually carried out from Turkey, the income is treated as Turkish-source and does not fall under the exemption — even if the client and payment are based abroad. For certain types of activity, another relief may apply instead — the 80% deduction for service exports (Article 89/13) for specific fields such as software development, design, engineering, and data analysis. What applies in your particular case is determined during the initial consultation.

Do I need to become a Turkish citizen? No. The exemption is tied exclusively to tax residency — it is available to nationals of any country, as well as to returning Turkish citizens who have lived abroad for at least three years.

I already own a holiday property in Turkey — does that hurt my eligibility? Generally not: a prior tax liability based solely on rental, capital, or disposal income does not prevent eligibility for the exemption. What matters is that there was no residence and no broader tax liability in Turkey during the preceding three calendar years — this is verified based on your specific history.

Will I remain a taxpayer in my previous country of residence? This depends on the law of your previous country of residence: whether a residence is retained there, how the double taxation treaty with Turkey allocates residency, and whether special rules apply (such as extended tax liability or exit taxes). A clean tax exit is a basic prerequisite — if needed, we coordinate this directly with your local advisors.

How much time do I have to file the application? As a rule, the application for the exemption certificate must be filed by the end of the calendar year in which Turkish tax residency is established (if you relocate during the last two months of the year, the deadline is the end of February of the following year). A late application results in loss of the exemption — filing it should therefore be built into your relocation plan from the outset.

Can the exemption be revoked retroactively? Yes — if the tax office later determines that the conditions were not met, the certificate is revoked and the tax is reassessed with penalties. Thorough review and documentation before relying on the exemption are therefore essential.

Why Work With Zilver Law Firm

We are not a big law firm, and that is exactly the advantage: friendlier pricing, less bureaucracy, and an individual approach to every case. We regularly support international clients relocating across borders, structuring their assets, and navigating cross-jurisdictional tax and immigration questions — offering coordinated legal assistance in English, German, and Ukrainian.

Whether you are exploring a permanent move to Turkey or simply weighing whether the 20-year exemption fits your income structure, Zilver Law Firm offers tailored guidance across tax and immigration law. 📩 Contact us today to schedule your initial consultation.

Current as of August 2026. This material is for general informational purposes only and does not replace individual legal advice on a specific situation.