Erdogan announced a sensational decision: foreigners who have not been tax residents of Turkey for the past 3 years can move to Turkey and for 20 years do not pay taxes on income and capital gains received abroad.
Only what is earned domestically is taxed.?
What is considered “foreign income”?
Passive income: dividends of foreign companies, interest on accounts abroad, rental of real estate abroad.
Active income: wages received from a foreign employer, pensions from foreign funds.
Capital Gains: Selling shares on foreign exchanges or real estate outside Turkey.
The reform includes two additional “hooks” that make the proposal unique:
Inheritance and gifting. In most European countries, inheritance tax for non-residents or large amounts can reach 30-40% or higher. In Turkey, it is only 1% for new residents.
Capital amnesty. Amnesty allows to declare assets (cash, gold, shares) held abroad until July 2027. If you transfer these funds to Turkish banks, they are protected from inspections.
Turkey offers itself as an alternative jurisdiction for:
European Turks: Turkish citizens living in Germany, the Netherlands and France are encouraged to return home by keeping Western pensions and net dividends.
Gulf businesses: The regime is ideal for family offices from the UAE and Saudi Arabia looking for a stable base with zero global income tax.
The Istanbul Financial Centre received a separate bonus: companies that manage transit trade or financial services through the IFC are also exempt from taxes.
? ? Turkey launches longest tax break for new residents in the world – 20 years. And here it is important not just to move, but to build everything right from the beginning.
That is why the Mercury Group team helps clients not only with real estate, but also with a complete strategy – so that you understand how to live, invest and earn as efficiently as possible here. ¶??