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Individual - Significant developments
Last reviewed - 27 March 2026Asset amnesty regime
Law No. 7582 introduces a new asset amnesty regime allowing individuals to declare previously unrecorded assets held either domestically or abroad, including cash, gold, foreign currency, securities, and other capital market instruments. Such assets can be declared to banks or intermediary institutions in Turkey by 31 July 2027 and, in the case of foreign assets, must be transferred to Turkey within three months following declaration.
The applicable tax rate is generally 5%, which may be reduced to between 0% and 4% depending on the commitment to hold the declared assets in specified financial instruments for a minimum period. Declared assets will not be subject to tax audit or reassessment, and certain protections are also provided in relation to ongoing tax inspections.
Income tax exemption for foreign-source income of new residents
Law No. 7582 introduces a new income tax exemption regime for individuals who become tax resident in Turkey.
Under this regime, individuals who have not been resident or subject to tax in Turkey during the preceding three years will benefit from a 20-year income tax exemption on their foreign-source income. Such income will not be subject to declaration in Turkey.
In addition, inheritance transfers occurring within the exemption period are subject to a reduced tax rate of 1%.
Amendments to share-based incentive schemes
Law No. 7582 introduces amendments to the income tax incentives applicable to share-based incentive plans in tech start-ups. Under the amended rules, the exemption threshold has been increased to twice the employee’s annual gross salary, and the holding period required to benefit fully from the exemption has been reduced to six years. If the shares are disposed of before the end of the holding period, the tax exemption remains subject to recapture at varying rates depending on the duration of holding.
Income tax incentives for employees of Qualified Service Centers
Income tax incentives have been introduced for employees working in Qualified Service Centers (QSCs). Under this regime, a portion of employees’ salaries is exempt from income tax, up to three times the gross minimum wage, which increases to five times the gross minimum wage for QSCs operating within the Istanbul Financial Center or designated industrial zones.
Withholding tax (WHT) on dividends
Dividends distributed by Turkish resident companies to resident or non-resident individuals, as well as non-resident companies, are subject to withholding tax.
The applicable WHT rate was increased from 10% to 15% by Presidential Decision No. 9286, published in the Official Gazette on 22 December 2024, and remains in effect. Dividend distributions to resident companies are not subject to withholding tax.
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