Turkey has unveiled an ambitious tax and investment incentive program aimed at transforming the country into a global hub for business, finance, and international capital. Announced by Recep Tayyip Erdoğan, this new framework is part of a broader strategy to strengthen Turkey’s economic attractiveness and accelerate foreign investment.
Presented during the “Turkey Century Investment Program” held in Istanbul on April 24, the plan reflects a clear objective: position Turkey as a global center of opportunity for companies, investors, and talent.
A New Vision: Making Turkey a Global Attraction Center
The newly announced program is designed to significantly enhance Turkey’s competitiveness on the international stage.
According to Recep Tayyip Erdoğan, the government is determined to:
- Strengthen the country’s investment environment
- Increase foreign capital inflows
- Support export-driven growth
- Position Istanbul as a major global financial hub
A comprehensive legislative package is expected to be submitted to Parliament, potentially introducing additional incentives in the coming months.
Key Tax Incentives and Financial Advantages
The 2026 reform introduces a wide range of benefits for individuals, exporters, and international companies.
1. 20-Year Tax Exemption on Foreign Income
Foreign individuals relocating to Turkey—who have not been tax residents in the past three years—will benefit from:
- Full exemption on foreign-sourced income for up to 20 years
- Taxation limited only to income generated within Turkey
Additionally, inheritance and transfer tax is reduced to 1%, making Turkey highly attractive for wealth management and long-term relocation strategies.
2. Expansion of Istanbul Financial Center Incentives
The Istanbul Financial Center is at the core of this strategy.
Tax advantages for companies operating within the center are being significantly expanded:
- Tax reductions on transit trade increased from 50% to 100%
- Full exemption from corporate tax on qualifying profits
- No corporate tax on profits generated from intermediary trading activities conducted abroad
This positions Istanbul as a strong alternative to other global financial hubs.
Companies operating outside the center but engaged in transit trade can still benefit from up to 95% deductions on their taxable base.
3. Incentives for Global Companies Relocating to Turkey
To attract multinational corporations, the program introduces strong incentives for relocating regional headquarters to Turkey.
Benefits include:
- Full deduction of foreign-sourced income
- Up to 95% tax deductions on other revenue streams
- Long-term advantages lasting up to 20 years
These measures aim to encourage global companies to manage regional operations from Turkey.
4. Reduced Corporate Tax for Exporters
Export-focused companies are among the main beneficiaries of the reform:
- 9% corporate tax rate for manufacturing exporters
- 14% for other exporting companies
This represents a significant reduction compared to previous levels, boosting Turkey’s competitiveness in global markets.
5. Full Tax Exemption for Service Exports
Companies providing services from Turkey to clients abroad—such as:
- software development
- engineering
- architecture
- design
will now benefit from 100% tax exemption on these revenues.
This makes Turkey an attractive base for digital businesses and international service providers.
6. Asset Repatriation Program (Wealth Amnesty)
A new asset repatriation scheme allows individuals and companies to bring foreign-held assets into Turkey under favorable conditions:
- Low tax rates between 2% and 3%
- No tax audits or penalties on declared assets
This initiative is designed to increase liquidity and encourage capital inflows.
A Strategic Push to Boost Growth and Exports
Beyond tax reductions, the program includes broader economic measures aimed at:
- accelerating industrial production
- supporting export sectors such as manufacturing
- strengthening Turkey’s position in global supply chains
The reduction of corporate tax for producer-exporters to 9% is a key pillar of this strategy, expected to significantly boost competitiveness in sectors like textiles, food, plastics, and technology.
Why These Reforms Matter
This comprehensive incentive plan signals a major shift in Turkey’s economic positioning.
It creates a highly attractive environment for:
- foreign investors seeking tax efficiency
- companies expanding into emerging markets
- global firms relocating regional operations
- entrepreneurs looking for international growth opportunities
With long-term tax advantages and strong government support, Turkey is aiming to compete with major global financial centers.
Turning Opportunity into Reality
While these incentives are highly attractive, accessing them effectively requires:
- the right legal and operational structure
- full compliance with Turkish regulations
- efficient management of employment and payroll
For foreign companies, navigating these requirements alone can be challenging.
Maximize Your Expansion in Turkey
To fully leverage these new tax advantages and ensure a smooth market entry, working with experienced local experts is essential.
👉 To benefit from these opportunities and structure your operations efficiently, you can contact Azkan Group, a recognized expert in umbrella company services and recruitment since 2005.
Their team supports international businesses with:
- market entry strategies
- hiring and workforce management
- payroll and compliance
- operational setup in Turkey
Get in touch today to take advantage of Turkey’s 2026 tax incentives and expand your business with confidence.