Turkey 20-Year Tax Exemption for New Residents in 2026

The tax exemption allows you to combine living in Turkey with owning assets in other countries. A person can reside in Antalya, Alanya, Istanbul, or Bodrum, own an apartment abroad, receive foreign dividends or interest, and, subject to the conditions stipulated by law, not pay additional income tax in Turkey on these incomes.

Purchasing real estate is not a mandatory condition for applying the exemption. However, for many families, owning a home becomes the foundation for long-term relocation, address registration, obtaining a residence permit, and establishing a center of vital interests.

In this article, we will examine in detail and in simple terms who is eligible for the twenty-year exemption, what income is considered foreign, how taxes in the home country and Turkey are connected, what payments arise when purchasing real estate, and how to properly organize the relocation.

1. What changed in Turkey's taxes in 2026

Turkey has introduced a special tax regime for individuals who become tax residents of the country after prolonged residence abroad.

Article 20/D was added to Turkey's Income Tax Law No. 193. It provides for an exemption from Turkish income tax on income and capital gains obtained outside Turkey.

The new system is primarily designed for people who truly move their place of residence to Turkey and continue to receive income from assets located in other countries.

In practical terms, the scheme works as follows:

1. the person moves to Turkey;
2. becomes a tax resident of the country;
3. continues to receive income from foreign assets;
4. applies to the tax authority;
5. receives an exemption certificate;
6. foreign income is exempt from income tax in Turkey for twenty years.

2. Who can benefit from the twenty-year exemption

The key condition relates to where the person lived and what income they received before the move.

During the three calendar years preceding the year in which residency in Turkey is established, the applicant must not have had a permanent place of residence or active tax activity in the country.

In particular, the following are reviewed:

• salary in Turkey;
• entrepreneurial activity;
• professional activity;
• permanent place of business;
• domicile and permanent residence.

Can you previously own property in Turkey

Yes. Owning an apartment, house, or villa in Turkey does not in itself close access to the twenty-year exemption.

A person could have previously purchased a property for vacation, visited several times a year, and even received rental income. The tax obligation related to real estate, investment income, or capital gains from a Turkish asset is considered separately from active professional activity.

This is especially important for owners who first bought a seaside home and then, several years later, decided to permanently move to Turkey.

3. Benefits for foreign nationals

Article 20/D applies to new tax residents regardless of citizenship. Citizens of all countries can use the exemption on the same terms.

The new system is particularly relevant for those who retain after relocation:

• residential or commercial real estate abroad;
• shares in foreign companies;
• investment portfolios;
• bank deposits;
• dividend and interest income;
• rental payments;
• foreign business.

Therefore, taxes after relocation must be considered in two legal systems simultaneously: Turkish and the person's home country.

4. What income may be exempt from tax in Turkey

The new regime covers income whose source is indeed located outside Turkey.

The main reference point is not the currency of payment or the location of the bank account. It is important to determine which asset, company, contract, or activity generated the income.

Foreign income may include:

• rental of an apartment, house, or commercial property outside Turkey;
• dividends from a foreign company;
• interest on a foreign bank account;
• coupon income from foreign bonds;
• profit from the sale of foreign securities;
• capital gains from the sale of foreign real estate;
• income from participation in foreign companies;
• certain types of salary, if the work is actually performed outside Turkey.

Example with foreign real estate

A foreign national moves to Turkey and continues to rent out an apartment in their home country. The source of income is real estate located outside Turkey.

With a certificate and compliance with other conditions, the income may be exempt from Turkish income tax. Tax obligations in the home country are calculated separately.

Example with foreign dividends

An investor lives in Antalya and receives dividends from a foreign company. If the payment truly has a foreign source, it may benefit from the exemption in Turkey.

Can funds be transferred to a Turkish bank

Yes. Transferring foreign income to an account in Turkey does not by itself change its source.

For example, an owner receives rental income for a property abroad and then transfers the funds to a Turkish bank to purchase a home, pay for school, or cover everyday expenses.

To confirm the origin of funds, it is advisable to keep:

• rental agreement;
• ownership document;
• bank statements;
• broker reports;
• dividend payment resolutions;
• tax documents from the source country.

5. How remote work from Turkey is treated

For entrepreneurs, consultants, and remote professionals, the place of actual work performance matters.

Work performed outside Turkey

A person may receive income from a foreign company or business whose activities are actually conducted in another country. In such a situation, there may be grounds for recognizing the income as foreign.

Services provided from Turkey

If a specialist permanently resides in Istanbul or Antalya, works from a home office, and provides services to foreign clients, the activity is actually performed on Turkish territory.

A foreign client, a foreign contract, and a foreign currency account do not by themselves always make such income foreign.

6. What income continues to be taxed in Turkey

The exemption applies to income from foreign sources. Receipts arising directly in Turkey are taxed under the regular rules.

These include:

• rental of a Turkish apartment or villa;
• salary from a Turkish company;
• income of a sole proprietor in Turkey;
• profit from a Turkish business;
• professional services provided from Turkey;
• capital gains from the sale of Turkish real estate;
• investment income from Turkish sources.

For buyers considering an income-generating model, it is useful to study real estate investments in Turkey in advance and calculate net returns after taxes, DASK, management, repairs, and vacancy periods.

7. How to obtain the exemption certificate

To apply the exemption, a special document must be obtained:

The application is submitted to the tax office at the person's place of registration in Turkey.

Application submission deadline

What the tax authority reviews

• date of establishing tax residency;
• place of permanent residence;
• three preceding calendar years;
• previous tax registration in Turkey;
• nature of previously received Turkish income;
• source of foreign income.

What documents to prepare

• passport;
• Turkish tax number;
• foreigner number YKN;
• residence permit or other document confirming legal status;
• address confirmation;
• entry and exit records;
• tax residency certificates;
• bank statements;
• documents for foreign real estate;
• rental agreements;
• broker reports;
• dividend documents;
• tax returns for previous years;
• translations of foreign documents into Turkish.

Border crossing history can be independently checked through the state system. Detailed instructions are published in the article how to check days of stay in Turkey via e-Devlet.

8. Tax residency, residence permit, and citizenship

For proper relocation planning, it is necessary to distinguish between three statuses.

Residence permit

A residence permit gives a foreigner the right to legally reside in Turkey for a specified period.

It can be obtained on the basis of property ownership, family, work, business, education, and other legally prescribed grounds.

Tax residency

Tax residency determines which of a person's income is accounted for in Turkey.

The following may be considered in its determination:

• length of stay;
• permanent housing;
• registered address;
• place of family residence;
• work and business;
• economic ties;
• center of vital interests.

Citizenship

Citizenship provides a permanent legal status and the full scope of rights of a Turkish citizen.

Obtaining a Turkish passport and applying Article 20/D are different procedures. For tax purposes, the actual place of residence and the source of income remain important.

The conditions of the program are detailed on the page Turkish citizenship through investment.

9. Taxes in the home country after moving to Turkey

The Turkish exemption regulates taxation in Turkey. Obligations in the home country are determined separately under local legislation.

Who is considered a tax resident of the home country

The main criterion is typically related to the number of days spent. A tax resident is generally a person who is in the country for at least 183 calendar days during the relevant year.

If the person remains a resident of the home country

A tax resident generally accounts for income from both the home country and foreign sources.

If the person becomes a non-resident of the home country

A tax non-resident generally does not pay income tax in the home country on income whose source is located outside that country.

At the same time, income from local sources continues to be accounted for. For example:

• rental of local real estate;
• sale of property in the home country;
• dividends from local companies;
• payments from local organizations;
• other income related to local assets.

Double taxation agreements

Double taxation avoidance agreements help distribute the right to tax specific income and determine a person's residency if, under internal rules, both countries consider that person their resident.

The following are considered in sequence:

1. permanent housing;
2. center of vital interests;
3. country of habitual residence;
4. citizenship;
5. mutual agreement between competent authorities.

10. Taxes when purchasing real estate in Turkey

The twenty-year exemption does not eliminate the costs associated with purchasing and owning real estate. Therefore, before signing a contract, it is necessary to know the full transaction budget.

Tapu fee

Upon registration of title, a Tapu fee is charged: the total amount is 4% of the declared value.

The distribution of costs between the parties is fixed by agreements for the specific transaction.

Cadastral fee Döner Sermaye

In addition to the Tapu fee, a mandatory cadastral fee is paid. Its amount is determined by the state tariff in effect on the date of the transaction.

DASK insurance

For residential properties, mandatory earthquake insurance is required. Additionally, the owner can insure finishes, furniture, appliances, and civil liability.

Annual property tax

The owner pays an annual municipal property tax each year.

For residential properties, the base rate is typically:

• 0.1% in regular municipalities;
• 0.2% within the boundaries of large metropolitan municipalities.

Tax on rental income

Rental of Turkish real estate is classified as income from a source in Turkey.

In 2026, a non-taxable amount of 58,000 Turkish lira is provided for residential rental income, subject to established conditions.

The following may be taken into account in the calculation:

• non-taxable minimum;
• repairs;
• insurance;
• depreciation;
• bank fees;
• other documented expenses.

Tax on property sale

If an individual sells a property within five years of purchase, the profit may be subject to capital gains tax.

The calculation takes into account:

• acquisition cost;
• inflation adjustment;
• documented expenses;
• non-taxable amount;
• sale price.

The non-taxable amount for 2026 is 150,000 Turkish lira.

Sale after five years of ownership generally does not create capital gains tax for an individual, unless the transactions constitute systematic commercial activity.

11. How tax strategy relates to property selection

Property purchase is not a mandatory condition of Article 20/D. However, owning real estate helps organize permanent living, register an address, obtain certain types of residence permits, and reduce dependence on the rental market.

12. Practical cases

13. How to prepare for relocation

1. Make a list of income.
   Include salary, rental, dividends, interest, securities, business, and asset sales.
2. Determine the source of each income.
   Record the country, payer, asset, bank, and place of work performance.
3. Review the three preceding calendar years.
   Collect information about previous residence permits, addresses, work, business, and declarations in Turkey.
4. Determine the relocation date.
   It affects the deadline for applying for the certificate.
5. Prepare documents for foreign assets.
   Separately systematize rental, dividends, bank interest, and securities.
6. Choose real estate according to your actual goal.
   Housing for a family, an investment property, and a property for citizenship require different criteria.
7. Coordinate the tax and migration plans.
   Address, residence permit, banking operations, and the tax certificate should be part of a single sequence.

14. Conclusion

In 2026, Turkey offered new tax residents one of the most interesting regimes in recent years.

Subject to the established conditions, income and capital gains from sources outside the country may be exempt from Turkish income tax for twenty years.

This creates the opportunity to live in Turkey, own real estate, obtain a residence permit or citizenship, and simultaneously retain foreign assets.

The clearest sequence of actions looks like this:

1. determine the future tax status;
2. classify all sources of income;
3. review the three preceding calendar years;
4. choose a city and property;
5. obtain a legal basis for residence;
6. submit the application for the certificate;
7. maintain separate records of Turkish and foreign income.

With this approach, real estate, taxes, and legal status become parts of one clear relocation plan.