In June 2026, Turkey introduced a game-changing incentive for foreign investors and expats: Law No. 7582, which grants a 20-year exemption from Turkish income tax on foreign-source earnings for new tax residents. If you are considering Turkish citizenship, this law transforms the financial case for relocating to or basing yourself in Turkey.

This guide explains what Law 7582 covers, who qualifies, how to apply and how it interacts with your Turkish citizenship investment.

What Is Law 7582?

Law No. 7582, passed by the Turkish Parliament on 21 May 2026 and published in the Official Gazette on 4 June 2026, introduces a 20-year exemption from Turkish income tax on foreign-source income for individuals who become Turkish tax residents on or after 1 January 2026.

This is not a temporary tax holiday — it is a 20-year exemption that covers salaries, business profits, rental income, capital gains, dividends and interest earned outside Turkey. It applies retroactively to anyone who became a Turkish tax resident from 1 January 2026 onward.

Who Qualifies for the 20-Year Exemption?

To qualify, you must meet three conditions:

1. Become a Turkish tax resident on or after 1 January 2026 (by spending 183+ days in Turkey in a calendar year, or by establishing your center of living here)
2. Not have been a Turkish full taxpayer (tax resident) in any of the three calendar years before becoming resident — so if you became resident in 2026, you must not have been a Turkish tax resident in 2023, 2024 or 2025
3. File the required declaration with the Turkish Revenue Administration (GİB) to register for the exemption

This means the exemption is available to most foreign investors who purchase property in Turkey and relocate — even part-time — as long as they meet the 183-day test or domicile criterion.

What Income Is Covered?

The exemption applies to the following foreign-source income categories:

• Employment income from non-Turkish employers
• Business profits from operations outside Turkey
• Rental income from properties located outside Turkey
• Capital gains from sale of assets held outside Turkey
• Dividends from non-Turkish companies
• Interest from foreign bank accounts and bonds
• Royalties and intellectual property income from abroad
• Pension income from foreign sources

What is NOT covered: Income sourced from within Turkey (Turkish rental income, Turkish dividends, Turkish employment) is taxed normally under Turkish progressive rates (15-40%).

How the Exemption Works in Practice

Let’s say you are a Russian investor who buys a $400,000 property in Istanbul, obtains Turkish citizenship and spends 200 days per year in Turkey. Under the old rules, you would be a Turkish tax resident, taxable on your worldwide income — including your Russian business profits, foreign dividends and international consulting fees.

Under Law 7582, all of that foreign income is exempt from Turkish tax for 20 years. You only pay Turkish tax on income generated inside Turkey — for example, rental income from your Istanbul apartment. For most global investors, this means effectively zero Turkish tax on their international earnings.

The 183-Day Rule: How Turkish Tax Residency Works

Turkish tax residency is triggered by either:

1. Domicile (ikametgah): If Turkey is registered as your legal place of residence
2. 183+ days: Spending 183 or more days in Turkey during a calendar year (counted 1 January to 31 December)

If you stay fewer than 183 days and do not register domicile in Turkey, you are a non-resident and already pay zero Turkish tax on foreign income — so the exemption applies but may not be needed. The exemption becomes valuable when you want to spend more than 183 days in Turkey (e.g., to enjoy the lifestyle, access healthcare or manage your property) without triggering worldwide taxation.

How Law 7582 Compares to Other Tax Incentives

Country	Program	Exemption Period	Conditions
Turkey	Law 7582	20 years	New tax residents, 3-year clean period
Portugal	NHR (ended 2024)	10 years	Closed to new applicants
Italy	Impatriate regime	5-10 years	Must work in Italy
Greece	Non-dom regime	15 years	€100K+ investment
Spain	Beckham Law	6 years	Employment-related
UAE	0% personal income tax	Permanent	No citizenship path

Turkey’s 20-year exemption is now one of the longest and most generous among comparable programs, especially when combined with the citizenship-by-investment route.

How to Apply for the Exemption

1. Establish tax residency — Spend 183+ days in Turkey or register domicile
2. Obtain a Turkish tax number (if you don’t already have one)
3. File the exemption declaration with your local tax office (Vergi Dairesi) — your accountant or lawyer handles this
4. Maintain records of your foreign-source income and the documents showing you qualify
5. File annual tax returns declaring your Turkish-source income (if any) and confirming your exemption status for foreign income

The exemption applies automatically once you qualify and file the declaration. There is no separate approval certificate — the tax office confirms your status in writing.

Important Considerations

• Double taxation treaties: Turkey has double tax treaties with 80+ countries. The exemption complements these treaties — you are not taxed twice on the same income.
• US citizens: The US taxes based on citizenship, not residence. US citizens living in Turkey still file US taxes but can use the Foreign Earned Income Exclusion and foreign tax credits alongside Turkey’s exemption.
• Leaving Turkey: If you cease being a Turkish tax resident (by staying fewer than 183 days for a calendar year), your worldwide tax obligation ends anyway. The exemption is relevant only during years when you are a tax resident.

Who Should Use the 20-Year Exemption

The exemption is most valuable for investors with substantial foreign income who plan to spend 183+ days per year in Turkey. This includes business owners with international profits, consultants and freelancers with foreign clients, retirees with foreign pensions, real estate investors with foreign rental properties and digital nomads earning from abroad. For those spending fewer than 183 days in Turkey, the exemption offers a safety net that allows more time in Turkey without triggering worldwide taxation.

Risks and Limitations of the Tax Exemption

The exemption applies only to foreign-source income — Turkish income (rental from your Turkish property, Turkish business profits) is taxed normally at progressive rates of 15-40%. The exemption lasts 20 years from becoming tax resident. After 20 years, you become a full taxpayer unless you cease being a resident. You must not have been a Turkish tax resident in the three prior calendar years. The law could theoretically be amended by future legislation, though grandfather clauses typically protect existing beneficiaries. US citizens should note that the US taxes based on citizenship, not residence, so US tax filing obligations remain regardless of Turkish tax treatment.

Conclusion: A Game-Changing Opportunity

Law 7582’s 20-year foreign income tax exemption transforms the financial case for Turkish citizenship and residency. For investors with international income who want to spend significant time in Turkey, the exemption effectively eliminates Turkish tax on foreign earnings for two decades. Combined with the citizenship-by-investment program’s speed, affordability and dual citizenship allowance, Turkey now offers one of the most attractive tax-and-citizenship packages globally. For those considering relocation, the message is clear: the window for the 20-year exemption is open now. Locking in this benefit through proper tax residency setup in 2026 provides two decades of tax-efficient international living.