Executive Overview

Law No. 7582 was published in Official Gazette No. 33270 on 4 June 2026. The reform package is designed to strengthen Türkiye’s position as a location for foreign investment, regional management, cross-border services, international trade, manufacturing and qualified talent.

The package should not be viewed as a single tax reduction. It combines individual income-tax measures, corporate incentives, investment structures and administrative reforms intended to attract different investor profiles.

Key Investor-Facing Measures

Twenty-Year Exemption for New Tax Residents

Qualifying individuals who become tax residents in Türkiye may benefit from a twenty-year exemption for income and gains derived from sources outside Türkiye.

The regime requires the individual not to have had a Turkish residence or Turkish tax-liability status during the three calendar years immediately preceding the year in which residence is established. Türkiye-sourced income remains subject to the ordinary tax rules.

Strategic Relevance

The measure may be relevant to international executives, investors, entrepreneurs, fund professionals and individuals with foreign investment portfolios. However, relocation should also be reviewed against exit-tax rules, controlled-foreign-company provisions, citizenship-based taxation and reporting requirements in other jurisdictions.

Qualified Service Centers

Law No. 7582 introduces a Qualified Service Center framework intended to attract regional and global corporate functions to Türkiye. An eligible center must be organised as a Turkish capital company and serve affiliated or group companies operating across at least three countries.

At least 80 percent of annual revenue must generally arise from affiliated or group companies located outside Türkiye. Qualifying activities may include finance, treasury, accounting, compliance, technology, data analytics, cybersecurity, human resources, procurement, supply-chain coordination, technical support and research functions.

Corporate and Personnel Incentives

Eligible centers may deduct 95 percent of qualifying foreign-sourced profits from their corporate-tax base. The deduction may rise to 100 percent for qualifying centers operating in the Istanbul Financial Center and designated industrial zones.

Income must satisfy the statutory conditions, including the applicable transfer-to-Türkiye requirement. Qualified personnel may also benefit from wage-based income-tax relief up to defined multiples of the gross minimum wage.

Istanbul Financial Center

The package reinforces the Istanbul Financial Center as a platform for financial-service exports, treasury operations, fund management, fintech, capital markets and regional corporate functions.

• A 100 percent deduction may apply to qualifying profits of eligible Qualified Service Centers.
• The 100 percent deduction for qualifying financial-service export income has been extended through 2047.
• Financial activity-fee relief and enhanced wage-tax incentives may apply subject to the relevant conditions.
• Substance, participant status, documentation and the nature of the exported services remain central to eligibility.

International and Transit Trade

Qualifying companies may benefit from a 95 percent corporate-tax deduction on profits from overseas or intermediary-trade transactions where goods are purchased and sold abroad without physically entering Türkiye.

The deduction may reach 100 percent for eligible entities operating in the Istanbul Financial Center and designated industrial zones. This may be particularly relevant for commodity trading, global procurement, regional supply-chain management and international purchasing offices.

Manufacturing and Agricultural Production

For fiscal periods beginning in 2027, the corporate-tax rate applicable to qualifying profits from manufacturing and agricultural production is set at 12.5 percent.

The reduced rate is directed to companies that meet the statutory production conditions, including the industrial-registry requirement for manufacturers. Income from activities outside the qualifying production scope may need to be separated.

For investors considering a production facility in Türkiye, the measure may materially affect project-level cash-flow, return and location analysis. Detailed modelling should reflect the final implementing rules and interaction with other incentives.

Asset Regularization

The law establishes a mechanism for bringing specified assets held abroad into Türkiye and for recording certain eligible assets located in Türkiye but omitted from statutory books.

Eligible categories include money, foreign currency, gold, securities and other capital-market instruments. Real estate is outside the stated scope.

Compliance Boundaries

The mechanism concerns tax treatment and does not remove obligations under anti-money-laundering, customs, criminal or capital-markets rules. Financial institutions remain responsible for customer due diligence, source-of-funds review and suspicious-transaction reporting.

Technology Ventures and Employee Equity

The package expands support for qualifying technology ventures, including a higher income-tax exemption ceiling for eligible employee stock options and simplified procedures for certain capital instruments used by non-listed technology companies.

These measures may improve Türkiye’s competitiveness as a base for software, fintech, artificial-intelligence and research-driven businesses seeking to attract and retain skilled employees.

Regulatory Implementation Update

Law No. 7582 has legal force, and several investor-facing measures have now been supported by secondary legislation. In July 2026, the Revenue Administration published implementing communiqués concerning the twenty-year foreign-income exemption, wage relief for Qualified Service Center personnel and the asset-regularization mechanism.

Investors should nevertheless confirm the procedural status applicable to each incentive at the time of implementation. Forms, evidentiary requirements, tax-return presentation and administrative interpretations may evolve.

Strategic Assessment

Law No. 7582 represents a broader investment-policy shift rather than an isolated fiscal measure. The package seeks to position Türkiye as a regional base for corporate services, international trade, finance, manufacturing, technology and qualified professionals.

The strongest opportunities are likely to arise where the commercial model already requires genuine Turkish operations. Structures designed only to capture a tax benefit, without personnel, management and economic substance, may create significant audit and reputational risk.