On June 4, 2026, the Turkish government published Law No. 7582 on Amendments to Certain Laws in the Official Gazette, introducing significant changes to Turkey’s tax framework, investment incentives, and business environment.
The new legislation aims to attract foreign investors, international talent, technology companies, and multinational businesses operating in Türkiye. Below is an overview of the most important developments.
1. New 20-Year Tax Exemption for Foreign-Source Income
One of the most notable measures is the introduction of a 20-year income tax exemption for qualifying foreign-source income earned by individuals who relocate to Türkiye and become Turkish tax residents.
To benefit from this incentive, individuals must not have been domiciled in Türkiye or subject to unlimited tax liability in the country during the three calendar years preceding their relocation.
This measure strengthens Türkiye’s attractiveness for expatriates, entrepreneurs, investors, and high-net-worth individuals seeking a tax-efficient location.
2. Qualified Service Centers Officially Recognized
Law No. 7582 introduces the concept of Qualified Service Centers, creating a legal framework for companies providing international business support services from Türkiye.
Eligible activities include:
- Finance and accounting services
- Auditing and compliance
- Human resources management
- Strategic consulting
- Technology consulting
- Data analytics
- Sales and customer support
- Research and development coordination
The objective is to position Türkiye as a regional hub for global business services and shared service centers.
3. Income Tax Advantages for Qualified Service Center Employees
The legislation introduces significant payroll tax incentives for employees working within Qualified Service Centers.
Part of the salary paid to eligible employees will be exempt from Turkish income tax.
Under standard conditions, the exemption applies to salary amounts up to three times the gross minimum wage. In certain industrial zones and within the Istanbul Financial Center, the exemption threshold may increase to five times the gross minimum wage.
These measures are expected to reduce employment costs for international employers operating in Türkiye.
4. Expanded Corporate Tax Incentives
The reform also enhances corporate tax benefits for businesses generating international revenue.
The incentives apply to:
- Profits from overseas trading activities
- Income derived from intermediary services related to foreign transactions
- Foreign-source income generated by Qualified Service Centers
For companies operating within the Istanbul Financial Center and qualifying industrial zones, the applicable deduction rate may reach 100%, significantly reducing the corporate tax burden.
5. Reduced Corporate Tax Rate for Manufacturing Companies
To support industrial growth and production, the corporate income tax rate applicable to manufacturing activities will be reduced to 12.5%.
This preferential rate will be available to:
- Companies holding a valid Industrial Registration Certificate
- Businesses actively engaged in manufacturing activities
- Agricultural production companies with qualifying production income
The reduced tax rate will apply to income generated from the 2027 fiscal year onward.
6. New Asset Repatriation Program
A new temporary asset declaration program has been introduced, allowing taxpayers to declare:
- Cash held abroad
- Foreign currency
- Gold
- Securities and capital market instruments
- Domestic assets not recorded in company books
Declarations can be made until 31 July 2027.
To benefit from the program, declared assets must be transferred to Türkiye or deposited with Turkish financial institutions within the prescribed deadlines.
7. Incentives for Technology Start-Ups and Entrepreneurs
The new law includes additional support measures for companies operating within Türkiye’s growing technology ecosystem.
Businesses holding the Tech Entrepreneurship Badge (Teknogirişim Rozeti) will benefit from simplified investment and fundraising procedures.
In addition, certain start-ups established by entrepreneurs participating in approved incubation programs will be exempt from chamber of commerce and industry membership fees for up to three years.
These measures aim to strengthen innovation and encourage technology investment in Türkiye.
8. Enhanced Benefits within the Istanbul Financial Center
The legislation further expands the incentives available under the Istanbul Financial Center regime.
Several tax advantages have been broadened, and the application periods of certain incentives have been extended.
The reforms reinforce Türkiye’s ambition to establish Istanbul as a leading regional financial hub serving Europe, the Middle East, Central Asia, and Africa.
What Does This Mean for Foreign Investors and Employers?
Law No. 7582 represents one of the most significant tax and investment reforms introduced in Türkiye in recent years. The new measures provide substantial opportunities for:
- Foreign investors
- International companies
- Shared service centers
- Technology businesses
- Manufacturing companies
- Expatriates relocating to Türkiye
With new tax exemptions, reduced corporate tax rates, payroll incentives, and support for international business operations, Türkiye continues to strengthen its position as an attractive destination for global investment and expansion.
At Azkan Group, we assist foreign companies with company formation, Employer of Record (EOR) services, payroll, HR outsourcing, tax compliance, and market entry solutions in Türkiye.
For more information regarding the impact of Law No. 7582 on your business operations, please contact our team.
