Law No. 7582 introducing various tax amendments has been enacted and published in the Official Gazette on 4 June 2026. The law includes several provisions that are particularly relevant for employment taxation, individuals considering relocation to Türkiye, and taxpayers holding foreign assets. Key highlights are summarized below.
1. Income Tax Exemption for Foreign-Source Income
A new provision has been introduced under Article 20/D (repeated) of the Turkish Income Tax Law, providing a significant tax exemption for individuals who become tax resident in Türkiye. Accordingly, individuals who become tax residents in Türkiye from 1 January 2026 or later will benefit from a 20-year income tax exemption on their foreign-source income, provided that they have not been tax resident in Türkiye during the preceding three calendar years.
The exemption applies to foreign-source income and gains derived outside Türkiye and is subject to the following key conditions and effects:
In addition, the Inheritance and Gift Tax Law has been amended to provide that inheritances received by individuals benefiting from the exemption during the exemption period will be subject to a reduced inheritance tax rate of 1%.
2. Incentives for Qualified Service Centers
The law introduces the concept of “qualified service centers” under the foreign direct investment framework.
Qualified service centers are defined as companies operating in at least three countries and deriving at least 80% of their annual revenue from related foreign entities.
These centers are intended to provide a wide range of headquarter and shared service functions, including financial and strategic management advisory, risk and treasury management, funding and debt operations, investment and capital structure planning, budgeting, financial reporting, international accounting and compliance, audit, digital transformation and technology advisory, data analysis, legal advisory, HR and training services, as well as coordination of sales, after-sales support, R&D, procurement, product testing, and laboratory services.
From an employment tax perspective, significant incentives are introduced for individuals employed in qualified service centers:
This framework is expected to support the establishment of regional service hubs in Türkiye, while increasing the volume of cross-border assignments and internationally mobile workforce structures.
3. Amendments to Equity-Based Compensation Taxation
The law introduces amendments regarding the income tax treatment of shares granted to employees in techno startup companies.
Under Article 17 of Income Tax Law No. 193, shares granted free of charge or at a discount to employees of qualifying techno startup companies benefit from an income tax exemption, provided that the fair market value of the shares at the grant date does not exceed twice the employee’s annual gross salary for the relevant year.
The existing recapture mechanism is revised and applies if the shares are disposed of within the applicable holding periods, as follows:
Any income tax arising from such recapture is collected from the employer, together with late payment interest, without the application of tax loss penalties. Where the shares are held for more than 6 years, the exemption becomes fully permanent.
These amendments significantly adjust the tax treatment of equity-based compensation and are expected to have a direct impact on vesting structures and long-term retention strategies in techno startup companies.
4. Tax Amnesty for Asset Repatriation
A new tax amnesty-type regime has been introduced to encourage the transfer of funds and financial assets held abroad (including cash, foreign currency, gold, shares, bonds, and other capital market instruments) into Türkiye.
The regime is available to:
Non-tax resident individuals are allowed to benefit from the regime without being subject to certain domestic registration and accounting requirements, provided that the assets are transferred to Türkiye or properly deposited into bank or brokerage accounts within the prescribed timelines.
Under the regime, eligible assets must be notified to banks or brokerage firms by 31 July 2027 and transferred to accounts in Türkiye within two months following the notification. The framework also allows the regularization of unrecorded domestic assets through declaration and registration in statutory records where applicable.
Assets are subject to a 5% advance tax, collected by banks or brokerage firms acting as withholding agents upon notification.
A reduced effective tax rate is available depending on the holding period commitment of the assets:
For notifications made between 1 January 2027 and 31 July 2027, the applicable rates are increased by 0.5 percentage points. If the authorization to extend the application period is exercised beyond 31 July 2027, notifications made after this date will be subject to an additional 1 percentage point increase in the applicable rates.
While the regime provides preferential tax treatment and protection from tax audits and assessments in relation to the declared assets, strict compliance requirements apply. In cases of non-compliance, the benefits of the regime are lost and the relevant taxes become payable together with late payment interest. No tax loss penalty (tax evasion penalty) shall be imposed.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Cumhur Dülger
Partner
Münevver Gaynetullah
Senior Consultant
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