23:42 - 11.06.2026
June 11, Fineko/abc.az. Turkiye has officially enacted a sweeping tax reform package aimed at repositioning the country as a major jurisdiction for international mobile capital, high-net-worth individuals, and cross-border businesses. The legislation has been formally gazetted and brought into force.
According to ABC.AZ, citing international tax intelligence, the centerpiece of the reform is a non-domiciled style framework establishing a 0% income tax rate for 20 consecutive years on foreign-sourced income and capital gains for individuals relocating to the country.
Core Legislation Tracks and Macroeconomic Triggers:
Three-Year Non-Residency Rule: To qualify for the 20-year tax holiday, applicants must not have held tax residency or domicile in Turkiye within the preceding three calendar years. Domestically sourced Turkish income remains fully subject to standard progressive tax bands ranging from 15% to 40%.
Preferential Inheritance Rate: Beneficiaries of the 20-year foreign income exemption track will enjoy a heavily reduced inheritance and gift tax rate fixed flat at 1%, down from progressive legal structures that scale up to 30%.
Asset Repatriation Scheme: The law introduces a comprehensive capital amnesty window running through July 31, 2027. Foreign-held cash, gold, foreign currency, and securities can be declared via Turkish financial institutions. If these assets are held in Turkish financial instruments for 5 years, the repatriation tax is reduced to 0%. Holding periods of 1 to 4 years will trigger scaled progressive rates between 1% and 4%.
Corporate Adjustments: The standard corporate tax baseline for manufacturing entities has been compressed from 25% to 12,5%, while qualifying export-oriented operations will benefit from a lowered corporate tax path of 9% to 11%.
