President’s Erdogan has announced last Friday, Persons who have not been tax residents of Türkiye for the past three years and who choose to relocate to the country will pay no Turkish tax on their foreign-source income and capital gains for a period of 20 years. The 20-year tax exemption would also cover capital gains, including Nasdaq stocks and crypto etc. Any Domestic income will be taxed locally.
The proposal expected to attract turkish citizens, foreign investors and companies to move to turkey especially for for remote workers, entrepreneurs, investors, and high-net-worth individuals. This proposal is similar to non-habitual tax regimes in Italy, Portugal.
Key Highlights
- not having lived in Turkey for more than six months during the last three years.
- income must not be generated from Turkey.
- only certain activities are expected to benefit from this tax
- Inheritance and gift tax for such individuals would be set at a flat rate of 1 percent from current 10%.
Citizenship Appealing for HNWI
Turkey’s citizenship by investment program which is particularly attractive for high net worth people seeking 20 year tax exemption as non-residents. Turkey requires USD 400,000 invested in a property to be granted direct citizenship.
The proposal has not become law yet — details are expected to be finalized around May–June this year.
