Turkey has unveiled a proposed tax incentive framework that could exempt eligible foreign residents from taxes on overseas income for up to 20 years, provided they have not been Turkish taxpayers for the past three years before relocation.
The proposal, announced under President Recep Tayyip Erdoğan’s economic direction, is aimed at attracting foreign investors, entrepreneurs, and globally mobile professionals to relocate assets and operations to Turkey. If implemented, the policy would also introduce reductions in capital gains and inheritance taxes, alongside broader fiscal incentives for incoming capital.
Export-oriented companies are expected to benefit from significantly lower corporate tax rates as part of the same reform package, strengthening Turkey’s push to expand its manufacturing and trade competitiveness.
The initiative is designed to position Turkey as a serious alternative to established low-tax jurisdictions that traditionally attract high-net-worth individuals and international businesses. It reflects a broader global trend where countries compete not only through trade agreements but also through tax regimes, residency programs, and investment-friendly regulations.
Although the policy is still under development, it signals a strategic shift toward encouraging foreign direct investment, job creation, and growth in technology-driven and globally connected industries.
At the same time, such aggressive tax competition raises concerns about long-term fiscal balance and fairness, as governments worldwide increasingly compete to attract wealth, sometimes at the cost of narrowing domestic tax bases.
