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The Turkish Parliament approved a wide-ranging tax reform package on Wednesday, rolling out long-term incentives aimed at drawing foreign capital, internationally mobile wealth and multinational business activity into Türkiye.
The legislation, passed by the General Assembly of the Turkish Parliament, broadens tax perks linked to the Istanbul Financial Center (IFC) while introducing new exemptions for returning Turkish citizens and globally operating firms.
Under the package, Turkish citizens returning to Türkiye could receive a 20-year income tax exemption on foreign earnings if they were not tax residents and had no registered address in the country during the previous three years.
The package also cuts the inheritance and transfer tax rate to 1% for assets inherited under the scheme.
The legislation introduces an asset declaration mechanism covering money, gold, foreign currency and securities held abroad, protecting declared assets from tax inspections and assessments if transferred to Türkiye within two months.
It also creates a new "qualified service center" category for companies operating in at least three countries and generating at least 80% of revenue from affiliated firms abroad. These centers will be allowed to provide services including financial consulting, management, auditing, legal consulting, digital transformation, R&D and technical support.
Profits from overseas trade in which goods do not physically enter Türkiye will qualify for a 95% corporate tax deduction, rising to 100% for firms operating within the IFC. The package also extends IFC incentives until 2047 and expands license fee exemptions from five to 20 years.
Qualified personnel will receive wage income tax exemptions worth up to three times the gross minimum wage, increasing to five times for IFC-based centers with participation certificates. The corporate tax rate for certified manufacturing and agricultural production companies will fall to 12.5% starting in 2027.
The tax package builds on a broader strategy by Ankara to position Türkiye as a regional investment and financial hub, with the IFC at the center of the overhaul.
The government has framed the reforms as an effort to attract multinational companies, globally mobile wealth, and foreign capital at a time when firms are reassessing regional operations following instability in the Gulf and the Iran conflict.
President Recep Tayyip Erdogan first unveiled the incentive package in April, describing Türkiye as a future "center of attraction" for international capital, trade and talent.
Treasury and Finance Minister Mehmet Simsek later described the incentives as "radical" measures designed to channel long-term investment and encourage companies to relocate regional operations to Türkiye.
He added that the package reflects Ankara’s push to compete with hubs such as Dubai, London and Hong Kong by offering long-term tax exemptions, simplified investment procedures and incentives for multinational headquarters operations.
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