Within the framework of the “Century of Türkiye Strong Investment Hub Program” announced to the public by the President on 24 April 2026, it was stated that comprehensive tax and administrative regulations aimed at increasing Türkiye’s investment capacity, supporting export-oriented economic growth, and attracting international capital into the country are planned to be implemented. Through the announced program, it is intended to establish a more competitive investment environment, encourage financial activities, and create a predictable economic structure for foreign investors.
In particular, the program draws attention to the expansion of tax incentives granted to the İstanbul Financial Center, the introduction of new advantages relating to transit trade activities, incentives aimed at encouraging the establishment of regional management centers in Türkiye, the enhancement of corporate tax advantages for exporting and manufacturing companies, the expansion of exemption mechanisms regarding revenues derived from service exports, regulations intended to integrate overseas assets into the Turkish economy, and measures designed to simplify investment processes from an administrative perspective.
Regulations Concerning the İstanbul Financial Center and Transit Trade Activities
One of the most significant regulations introduced under the program concerns the expansion of the scope of tax incentives granted to companies operating within the İstanbul Financial Center (“IFC”). The primary objective is to strengthen Türkiye’s position in the field of international finance and trade and, in particular, to encourage the conduct of high-volume cross-border commercial transactions through Türkiye.
Under the current system, 50% of the profits derived by institutions operating within the IFC from transit trade transactions and overseas purchase-and-sale activities may be deducted from corporate income, provided that certain conditions are satisfied.
Pursuant to the regulations envisaged for the new period, it is planned that the currently applicable 50% deduction rate for revenues generated from transit trade activities and overseas trading transactions conducted within the IFC will be increased to 100%. In addition, with respect to institutions carrying out transit trade activities outside the IFC, it is envisaged that 95% of such revenues will be exempt from taxation.
These regulations are expected to produce significant outcomes in terms of supporting Türkiye’s objective of becoming a regional trade hub and directing international capital flows toward the country.
Tax Incentives for Regional Management Centers
Another regulation announced within the scope of the program concerns tax advantages intended to encourage multinational corporations to establish their regional management, coordination, and operational centers in Türkiye.
Within this framework, it is planned that the entirety of the revenues obtained by regional management centers within the İstanbul Financial Center and 95% of the revenues obtained outside the IFC may be deducted from corporate income for a period of twenty years.
Furthermore, it is envisaged that salary exemptions will also be granted to qualified employees working in such centers, subject to the fulfillment of certain conditions. Through these measures, it is aimed to encourage international companies to conduct their managerial operations through Türkiye and to attract a highly qualified workforce to the country.
Corporate Tax Advantages to Be Granted to Exporting Companies
It has also been announced that the scope of corporate tax incentives aimed at supporting export and manufacturing activities will be expanded within the framework of the program.
Under the current practice, a 5-point corporate tax reduction is applied to profits derived from export activities, while an additional 1-point reduction is granted in respect of profits generated from manufacturing activities.
Under the proposed regulation, the corporate tax rate for manufacturing-exporting companies is envisaged to be reduced to 9%, while the rate applicable to other exporting institutions is planned to be set at 14%.
Through these regulations, it is intended to increase production capacity, support export-oriented economic growth, and strengthen the competitiveness of Turkish companies in international markets.
Expansion of Tax Advantages Relating to Service Exports
It has been stated that the scope of existing tax advantages relating to service exports will be expanded in order to support foreign currency-generating activities within the scope of the program.
Pursuant to the current regulations in force, 80% of the revenues derived from architecture, engineering, design, software, medical reporting, bookkeeping, call center, and data storage services, as well as education and healthcare services rendered from Türkiye to non-residents and utilized abroad, may be deducted from the tax base through the tax return.
According to the statements made within the scope of the program, it is planned that the relevant deduction rate will be increased to 100%. In this way, it is aimed to encourage service exports, increase foreign currency inflows, and strengthen Türkiye’s position within the international services sector.
Tax Advantages to Be Granted to Individuals Relocating to Türkiye
It has also been announced that a new tax approach aimed at encouraging individuals residing abroad to relocate to Türkiye is planned to be adopted within the scope of the program.
Accordingly, individuals who have not been tax residents in Türkiye during the previous three years and who relocate to Türkiye from abroad are envisaged to benefit from a twenty-year exemption from taxation in Türkiye with respect to their foreign-source income and earnings. For such individuals, only income sourced from Türkiye will be subject to taxation.
In addition, it is planned that inheritance and transfer tax will be applied at a rate of 1% in respect of inheritances transferred to such individuals through succession.
Through these regulations, it is considered that the government aims to attract high-income foreign investors, entrepreneurs, and qualified professionals to Türkiye.
Regulation Concerning the Repatriation of Overseas Assets into Türkiye
It has also been stated within the scope of the program that a new regulation will be introduced regarding the integration of financial assets held abroad into the Turkish economy.
Within this framework, it is planned to allow cash, gold, and securities held abroad to be brought into Türkiye within a specified period and to integrate such assets into the economy under a low-rate taxation system.
Although the technical details of the regulation have not yet been disclosed, it is considered that the relevant approach may contain a structure similar to the asset repatriation schemes implemented in previous periods.
Project-Based Tax Assurance Mechanism
It has been stated that a new approach aimed at strengthening tax predictability for large-scale investments of strategic importance is planned to be implemented within the scope of the program.
Accordingly, it is intended to minimize the impact of tax regulations introduced after investment decisions have been made, establish reasonable transition periods for investors, and develop project-based tax assurance mechanisms.
This approach is particularly expected to increase legal and financial predictability with respect to long-term investments.
One-Stop Office Model
It has been announced that the “One-Stop Office” model is planned to be implemented in order to ensure that investment processes are carried out in a faster, more efficient, and coordinated manner.
Through this structure, which is envisaged to operate under the coordination of the Presidency Investment and Finance Office, it is aimed to coordinate transactions carried out by investors before different public institutions through a single centralized mechanism.
Within this framework, it will become possible for company incorporation procedures, work and residence permit processes, tax and social security transactions, Turkish Employment Agency (İŞKUR) applications, land allocation procedures, investment incentive processes, Environmental Impact Assessment (“EIA”) procedures, and other environmental permit processes to be conducted through a single center.
Accordingly, it is aimed to reduce the bureaucratic burden encountered during investment processes, accelerate administrative procedures, and establish a more predictable investment environment.
Share-Based Incentive Mechanisms for Employees
It has been announced that new regulations concerning share-based incentive systems are planned to be introduced in order to strengthen employees’ long-term commitment to companies and, in particular, to support qualified human capital within the technology and entrepreneurship ecosystem.
Within this framework, it is aimed to render employee stock option incentives more functional, accessible, and attractive. In particular, it is intended to strengthen mechanisms enabling growth-oriented companies and start-ups to include their employees within the company’s capital structure.
In addition, the simplification of existing practices relating to convertible debt instruments and the establishment of more flexible investment processes are among the proposed regulations. This approach is considered significant in terms of increasing venture capital investments and facilitating access to financing for innovative companies.
It was also announced to the public that the first phase of the Terminal İstanbul Project will be implemented and that various infrastructural and institutional measures aimed at strengthening the entrepreneurship ecosystem will be undertaken.
| The Omnibus Bill adopted by the Grand National Assembly of Türkiye on 21 May 2026 enacted Article Repeated 20/D of the Income Tax Law regulating the 20-year tax exemption, as well as Article 10 containing the Asset Repatriation regulation. |
The Omnibus Bill adopted by the Grand National Assembly of Türkiye on 21 May 2026 enacted Article Repeated 20/D of the Income Tax Law regulating the 20-year tax exemption and Article 10 containing the Asset Repatriation regulation. The relevant provisions shall enter into force upon their publication in the Official Gazette following the approval of the President. The regulations adopted through the omnibus bill in question are as follows:
New Regulations Concerning Inheritance and Transfer Tax and Income Tax
Within the scope of the amendments introduced to the Inheritance and Transfer Tax Law, a new tax regulation is envisaged with the aim of encouraging the inflow of foreign capital and financial resources into Türkiye. Accordingly, for individuals whose foreign-source income and earnings are exempt from income tax pursuant to the Income Tax Law, the inheritance and transfer tax rate applicable to transfers of assets through inheritance occurring during the exemption period shall be determined as 1%.
Through this regulation, it is aimed to encourage high-income individuals residing abroad to relocate to Türkiye and to direct international capital toward the country.
Income Tax Exemption Concerning Shares Granted to Employees
Pursuant to the amendments introduced to the Income Tax Law, new regulations are being implemented regarding share-based incentive systems for employees working at techno-entrepreneurship companies meeting the criteria determined by the Ministry of Industry and Technology.
Within this framework, the scope of the income tax exemption relating to shares granted to employees free of charge or at a discounted price by employers and deemed to constitute wages is being restructured.
In line with the amendment:
- The upper limit subject to the exemption is redefined as two times the gross salary earned in the relevant year.
- New principles are introduced concerning the preservation of tax advantages depending on the holding periods of shares acquired by employees.
Accordingly, where the acquired shares are disposed of:
- Within 2 years from the acquisition date, the entirety of the exempted tax,
- Between 3 and 4 years from the acquisition date, 75% of the exempted tax,
- Between 5 and 6 years from the acquisition date, 25% of the exempted tax,
shall be collected from the employer together with default interest.
Through this regulation, it is aimed to encourage the longer-term employment of employees within companies and to render share-based reward systems more sustainable, particularly within the entrepreneurship ecosystem.
Tax Exemption for Foreign-Source Income and Earnings
A new provision entitled “Tax Exemption for Foreign-Source Income and Earnings” is being introduced into the Income Tax Law.
Accordingly, foreign-source income and earnings obtained by real persons deemed resident in Türkiye shall be exempt from income tax for a period of twenty years, provided that such individuals did not have a domicile or tax liability based on full tax residency in Türkiye during the last three calendar years preceding the date on which they became deemed resident in Türkiye.
The regulation further provides that:
- The existence of tax liability arising from Turkish-source real estate capital income, movable capital income, or capital gains prior to becoming deemed resident in Türkiye shall not prevent such individuals from benefiting from the exemption.
- No annual income tax return shall be filed with respect to income falling within the scope of the exemption.
- In cases where a tax return must be submitted due to other categories of income, such exempt income shall not be included in the declaration.
- Expenses and cost items relating to exempt income and earnings shall not be taken into account in determining taxable income.
Furthermore:
- Taxes paid abroad may not be credited against the income tax assessed in Türkiye.
- In the event that it is subsequently determined that the exemption conditions were not satisfied, taxes that were not accrued shall be deemed to constitute tax loss.
The Ministry of Treasury and Finance shall be authorized to determine the procedures and principles regarding the implementation of the regulation. The provision is envisaged to enter into force on the date of publication and to apply to individuals deemed resident in Türkiye as of 1 January 2026.
Salary Exemption for Qualified Service Centers
Another amendment to the Income Tax Law introduces income tax advantages for personnel employed at “qualified service centers” defined under the Foreign Direct Investments Law.
Within this framework, income tax exemption shall apply to the salaries of qualified service personnel employed at qualified service centers:
- Up to the portion not exceeding three times the gross minimum wage;
- In respect of centers operating within industrial zones established under the Industrial Zones Law and deemed appropriate by the President considering the intensity of foreign investment, as well as centers operating within the İstanbul Financial Center with a participant certificate, up to five times the gross minimum wage.
The President shall be authorized:
- To reduce the relevant threefold and fivefold thresholds separately or jointly down to onefold;
- To increase them up to twofold.
Regulation Concerning the Concept of “Qualified Service Center”
A new provision entitled “Qualified Service Center” is being introduced into the Foreign Direct Investments Law.
Accordingly, a qualified service center shall refer to capital companies that:
- Operate actively in at least three different countries;
- Are established to provide services to affiliated companies or groups of companies;
- Generate at least 80% of their annual revenues from affiliated companies located abroad.
The fields of activity of such centers are broadly defined and shall include:
- Financial consultancy,
- Strategic management consultancy,
- Risk management,
- Cash and liquidity management,
- Financing and borrowing transactions,
- Investment and capital structure planning,
- Budgeting, financial reporting, and analysis,
- International accounting and compliance services,
- Audit activities,
- Digital transformation and technology consultancy,
- Data analysis and investment consultancy,
- Human resources and training services,
- Brand management and promotional activities,
- Coordination services relating to after-sales support, technical support, research and development, and laboratory activities.
It is expressly regulated that consultancy activities concerning Turkish law may only be carried out through attorneys or attorney partnerships authorized under the Attorneyship Law.
Employees directly providing services within such centers shall be deemed “qualified service personnel,” whereas support personnel shall remain outside the scope thereof. The Ministry of Industry and Technology shall be authorized to determine the procedures and principles regarding the implementation of the regulation, provided that it obtains the opinions of the Ministry of Treasury and Finance and the Ministry of Trade.
Tax Advantages Relating to Revenues Derived from Transit Trade and Qualified Service Activities
Significant tax advantages are being introduced under the amendments made to the Corporate Tax Law with respect to revenues derived from transit trade activities and qualified service activities.
Accordingly, 95% of the revenues obtained from the resale abroad of goods purchased abroad without bringing them into Türkiye, or from intermediary activities relating to overseas purchase-and-sale transactions, may be deducted from corporate income.
However:
- For institutions operating in regions established under the Industrial Zones Law and deemed appropriate by the President in terms of foreign investment intensity; and
- For institutions operating within the İstanbul Financial Center Region with a participant certificate,
the relevant deduction rate shall be applied as 100%.
In order to benefit from this deduction:
- The relevant revenues must be transferred to Türkiye by the deadline for filing the corporate tax return for the relevant fiscal period; and
- The buyer and seller of the goods subject to intermediary activities must not be located in Türkiye.
The President shall be authorized to reduce the relevant rates down to zero or increase them up to 100%.
PAR Law Firm provides legal consultancy services to foreign investors and international companies planning to conduct investment activities in Türkiye at every stage of the investment process. Within the scope of the services carried out by the Firm, it is aimed to structure foreign-capital investments in accordance with Turkish legislation, conduct company incorporation procedures, and ensure that investment processes are maintained under legal security.
Within this framework, PAR Law Firm provides legal support regarding the determination of the most appropriate company model in line with investors’ fields of activity, commercial objectives, and organizational structures, the completion of company incorporation procedures, the monitoring of relevant administrative application and permit processes, and the conduct of investment activities in compliance with the applicable legislation.
In particular, the consultancy services provided by our Firm include:
- Conducting foreign-capital company incorporation procedures,
- Preparing articles of association and corporate documentation,
- Evaluating investment processes from the perspective of tax and corporate law,
- Monitoring work permit and residence permit procedures,
- Drafting commercial agreements and conducting legal risk analyses,
- Establishing and restructuring partnership structures,
- Providing legal consultancy regarding mergers, acquisitions, and share transfer transactions,
- Conducting legal assessments concerning investment incentives and İstanbul Financial Center applications,
- Providing continuous legal consultancy services required during companies’ operational processes.
Within this scope, PAR Law Firm provides consultancy services in order to ensure that foreign investors may conduct their activities in Türkiye on a legal basis that is compliant with the applicable legislation, predictable, and sustainable.