A territorial-tax reform with three headline measures for new tax residents: (1) 20-year exemption from Turkish tax on foreign-source income and capital gains; (2) inheritance and gift tax cut to a flat 1%; (3) corporate-tax cuts for exporters (manufacturing 25% → 9%, others to 14%) plus 100% transit-trade-income deduction for Istanbul Finance Centre companies. The bill heads to parliament shortly. Eligibility is gated by a 3-year clean-slate rule on prior Turkish tax residency.

Foreign-source income and capital gains under the standard international definition: dividends from non-Turkish companies, interest from foreign bank accounts and bonds, rental income on real estate located outside Turkey, capital gains on foreign securities and real estate, royalties from offshore-held IP, pension and annuity income from foreign sources, salary for work performed outside Turkey for a non-Turkish employer, and crypto gains from non-Turkish exchanges. Turkish-source income (Turkish company salaries, Turkish rental, Turkish-listed shares, Turkish dividends) remains subject to regular Turkish brackets up to 40%.

The eligibility gate. To qualify for the new territorial regime, you cannot have been a Turkish tax resident at any point in the previous three calendar years. If you spent six months in Istanbul in 2024, you are out. If your last Turkish tax filing was 2022 or earlier, you are in. The rule is identical in structure to Italy's flat-tax regime, the UK's old non-dom rules (now sunset), and Portugal's IFICI program.

Approximately 30 days end-to-end via the kısa dönem ikamet (short-term residence permit) route. Application at the Provincial Directorate of Migration Management with notarised lease, biometrics, private health insurance, and proof-of-means. The territorial-regime clock starts as soon as you cross 183 days in Turkey (or establish a 'permanent place of residence' under Article 4 of the Income Tax Law).

Yes, to be Turkish tax resident under the standard test. Article 4 of the Income Tax Law also recognises 'permanent place of residence' as an alternative trigger, but the 183-day count is the cleanest path. The territorial-tax holiday only applies once you are tax-resident, so genuine Turkish presence is required — this is not a passive 'flag' to plant from afar.

US citizens are still subject to US worldwide taxation on foreign income regardless of Turkish residency. The Foreign Earned Income Exclusion (FEIE) shields earned income from employment / self-employment up to roughly $130,000 (2026) but does not cover dividends, interest, capital gains, pensions, or 401(k) distributions. The Turkey territorial regime still helps on the Turkish side of the equation, but US citizens should not assume 'tax-free' is tax-free for them. Mandatory coordination with US tax counsel.

Announced 24 April 2026; bill heads to parliament shortly. Liberty Mundo notes candidly: there is implementation risk between announcement and final regulations. We recommend starting the residency setup now (kısa dönem ikamet, tax-ID, bank account) so that the territorial-regime election can be filed on day one once the law enters into force, but we will not advise winding up foreign structures or relocating assets until the final regulations are published.

Yes. Two routes: (1) the existing US$400,000 property CBI under Article 12(b) of Law 5901, which delivers a Turkish passport in 4-8 months alongside the residency; (2) standard naturalisation after 5 continuous years of residency under Article 11 of Law 5901. The CBI route is more popular because Turkish citizens are uniquely eligible for the US E-2 treaty-investor visa, which is not otherwise available to most applicant nationalities.

Liberty Mundo's typical fee for Turkish residency under the new territorial regime is approximately US$5,500 covering 3-year clean-slate verification, kısa dönem ikamet filing, tax-ID and bank account setup, territorial-regime election, and first-year filing coordination. The optional CBI upgrade adds US$8,500 (plus the US$400k property cost). Multi-year filing coordination is US$3,500 per year. Source-of-income tax structuring is US$6,500.

Materially lower than Zurich, London, Munich, or Singapore. Istanbul (Beşiktaş / Etiler / Levent / Sarıyer), Antalya, Bodrum, and İzmir all offer European-tier urban living at a fraction of Western European cost. International schools (British International, Robert College, ENKA Schools) are well-established. Healthcare is private and high-quality in the major cities. Direct flights to all major European, Middle Eastern, and Asian hubs from Istanbul Airport (IST).

The territorial regime expires after 20 years and Turkey reverts to taxing your worldwide income at regular brackets up to 40%. Most clients plan to relocate before the 20-year mark, restructure into a different territorial / non-dom jurisdiction (UAE, Italy flat-tax, Singapore, etc.), or simply accept the reset. Year-15 planning is a standard advisory item we run for any client locking in the Turkey holiday now.

Turkey: 20 years, 0% on foreign income, 1% inheritance, ~40% on local income, low cost of living. UAE: permanent 0% on everything, but no path to citizenship and no clean-slate barrier. Italy flat-tax: 15 years at €200k flat (regardless of foreign income size), ~43% on local income, high cost of living. Portugal IFICI: 10 years, 0% on most foreign income, ~48% on Portuguese income, mid cost of living. Turkey wins on duration and on cost-of-living; UAE wins on permanence and zero local rate; Italy wins for ultra-HNW clients whose foreign income exceeds ~€3M annually.