Law No. 7582, effective as of 4 June 2026, introduces tax incentives on foreign-source income, preferential inheritance tax rules, an offshore asset regularisation regime, and new frameworks for regional service centres and the Istanbul Finance Center.
Law No. 7582, which entered into force on 4 June 2026, establishes a comprehensive package of tax and investment measures with a direct impact on internationally mobile individuals, family offices, and multinational groups with operations or expansion plans in Türkiye. The incentives include a personal income tax exemption on foreign-source income, a reduced inheritance tax regime, a temporary offshore asset regularisation programme, and two special corporate regimes: the Qualified Service Center (QSC) and the enhanced Istanbul Finance Center (IFC) framework.
FOR INDIVIDUALS
Personal Income Tax Exemption for Foreign-Source Income
Individuals who have not been tax residents in Türkiye during the previous three calendar years, and who have not maintained a domicile or Turkish tax liability during that period, will benefit from a full exemption from Turkish personal income tax on all foreign-source income for a period of 20 years from the date they establish tax residence in Türkiye.
The exemption applies automatically, with no obligation to file an annual Turkish tax return in respect of exempt foreign-source income. Previous Turkish-source income—such as rental income from Turkish real estate, investments in Turkish securities, or capital gains derived from Turkish assets—does not prevent access to the regime. Turkish-source income will continue to be taxed under the ordinary domestic rules.
Reduced Inheritance Tax
Individuals benefiting from the foreign income exemption who inherit assets during the exemption period will be subject to inheritance tax at a flat rate of 1%, replacing the ordinary progressive inheritance tax rates, which may reach 30%.
Temporary Offshore Asset Regularisation Regime
The new framework introduces a temporary voluntary disclosure programme for offshore assets—including cash, securities, gold, and other financial instruments—subject to preferential tax rates ranging from 0% to 5%, depending on the applicable lock-up commitment:
- 0% for assets invested in time deposits, government debt instruments, lease certificates (sukuk), or venture capital funds, provided they remain invested for at least five years.
- Up to 5% for shorter commitment periods or for assets declared without any lock-up obligation.
Regularised assets will be protected from subsequent tax audits and additional tax assessments. The current application period runs until 31 July 2027, although an extension remains possible. Tax rates will increase from 1 January 2027, making an assessment before that date advisable.
FOR MULTINATIONAL GROUPS
Qualified Service Center (QSC) Regime
A Qualified Service Center (QSC) is defined as a Turkish capital company providing intra-group services to a multinational group operating in at least three countries, with at least 80% of its income generated from related entities located outside Türkiye.
Eligible activities cover a broad range of regional shared services, including:
- Financial advisory and treasury;
- Risk management;
- Compliance services;
- Legal services;
- Brand management;
- Human resources;
- Technology consulting;
- Sales coordination; and
- Research and Development support.
Profits derived from qualifying activities and remitted to Türkiye before the corporate income tax filing deadline benefit from a 95% deduction from the corporate tax base, increasing to 100% for centres holding IFC participant status or located within approved industrial zones.
These deductions are available for 20 fiscal years from the commencement of operations.
Qualified employees working in QSCs benefit from a personal income tax exemption on salaries of up to three times the gross minimum wage, increasing to five times the gross minimum wage for IFC-certified centres or approved industrial zones.
Istanbul Finance Center (IFC) – Enhanced Regime
The Istanbul Finance Center (IFC) regime has been significantly strengthened.
Licensed financial activities carried out by IFC participants now qualify for a 100% corporate income tax deduction until 2047, while the exemption from financial operating licence fees has been extended to 20 years.
Employees with international professional experience working within IFC entities benefit from personal income tax exemptions of:
- 60%, where they have at least five years of professional experience abroad; or
- 80%, where they have at least ten years of professional experience abroad,
provided they have not worked in Türkiye during the three years immediately preceding their employment within the IFC.
These employment incentives have now been extended to all IFC participants, including Qualified Service Centers.
The IFC One-Stop Shop further centralises company incorporation, licensing procedures, work permits, and regulatory registrations through a single point of contact, with representatives from six government authorities available on-site.
PRACTICAL IMPACT
Law No. 7582 positions Türkiye among the most competitive jurisdictions for attracting internationally mobile talent, high-net-worth individuals, and regional headquarters.
For multinational groups operating across the MENA region, Eastern Europe, or Central Asia, the Qualified Service Center regime offers an efficient platform for centralising intra-group services while achieving an effective corporate tax burden close to zero.
For high-net-worth individuals considering relocation or international succession planning, the combination of a 20-year exemption for foreign-source income together with a 1% inheritance tax rate deserves careful analysis alongside the tax rules applicable in their home jurisdiction.
Timing is important: although the formal regularisation programme currently runs until 31 July 2027, the most favourable tax rates are effectively available only until 31 December 2026, given the scheduled rate increases from 1 January 2027.
The Feliu & Expatfeliu team is available to advise on all legal, tax, immigration, and international mobility aspects arising from Türkiye’s new framework. Please contact us for tailored advice.
