Türkiye's 20-Year Foreign-Income Tax Holiday Proposal: A Non-Dom Alternative for HNW Families

A proposal floated in early 2026 by Türkiye's leadership would, if enacted, introduce a 20-year exemption on foreign-source income for individuals who become new Türkiye tax residents. The structure echoes Italy's flat-tax non-dom regime and Greece's parallel system, but extends the exemption window meaningfully further than any existing OECD-area programme.

For HNW families weighing Mediterranean or Gulf relocation, the proposal — if it lands in law — would put Türkiye on a relocation shortlist that has not historically included it for tax reasons. This guide walks through what the proposal would change, how it compares with mature alternatives, and what should be priced in by anyone considering Türkiye relocation while the proposal is in motion.

A note on status: as of writing, the proposal is at the policy-and-public-discussion stage, not enacted law. The terms in this guide reflect the most credible reporting of the proposal as it stands. Always confirm the law as enacted before making relocation decisions on its basis.

What the proposal would change

The headline of the proposal is straightforward: an individual who becomes a Türkiye tax resident after the regime begins would not pay Türkiye income tax on foreign-source income — dividends, interest, capital gains, business income, royalties, rental income from outside Türkiye — for up to 20 years from arrival.

Three structural pieces are likely to anchor any final law:

• A new-arrival test. Eligibility tied to those who have not been Türkiye tax residents for some defined prior period (Italy uses 9 of the last 10 years; Greece 7 of 8).
• A flat-fee or scaled annual charge. Most modern non-dom regimes charge an annual lump sum (Italy €100K or €200K depending on cohort; Greece €100K) in lieu of tax on foreign income. Türkiye's proposal may include similar.
• Source restrictions. Income from Türkiye sources — Turkish-real-estate rent, Turkish-company dividends, salary from a Türkiye employer — would remain taxed under standard Türkiye rules.

The 20-year horizon — if held — would be the longest exemption period offered by any major non-dom regime, materially exceeding Italy's 15 years and Greece's 15 years.

How Türkiye compares with Italy and Greece

Three non-dom regimes — Italy's, Greece's, and the (proposed) Türkiye one — would form the Mediterranean non-dom triangle.

Italy — Annual flat tax of EUR 100,000 (grandfathered for pre-August 2024 applicants) or EUR 200,000 (new applicants) on foreign-source income. Maximum 15 years. Family members can be included at EUR 25,000 each per year.

Greece — Annual flat tax of EUR 100,000 on foreign-source income. Maximum 15 years. Family members can be included at EUR 20,000 each per year. Requires investment of at least EUR 500,000 in Greece within three years of moving.

Türkiye (proposed) — Up to 20 years of exemption on foreign-source income. Final fee structure, family-inclusion rules, and any investment requirement remain to be defined in the final legislation.

Each regime has trade-offs beyond the tax line: Italy delivers an EU passport endgame after 10 years of residence; Greece in 7; Türkiye's relocation has its own attractions (cost of living, Bosphorus quality of life, Türkiye CBI optionality after 5 years of residence) but does not deliver an EU passport.

What HNW families should think about before relocating

A 20-year tax exemption is striking, but a relocation decision is multidimensional. Five practical considerations:

1. The proposal is not yet law. Mediterranean tax-policy proposals routinely change in their parliamentary passage. Italy's 2024 increase from EUR 100K to EUR 200K landed quickly; Greece has tightened multiple programs in recent cycles. Plan around the law as enacted, not as proposed.

2. Tax residency is more than the local rule. Becoming a Türkiye tax resident does not automatically end tax residency elsewhere — the home country's tie-breaker tests, exit-tax rules, and CFC regimes all need to be modelled.

3. Banking and currency. Türkiye operates in lira and dollars. Foreign-income remittance is straightforward but currency exposure on the lira side is real; plan a treasury structure rather than a single-bank position.

4. CRS and exchange of information. Türkiye is a CRS-reporting jurisdiction. Foreign accounts and assets will be visible to tax authorities globally; the exemption is from Türkiye taxation, not from home-country reporting.

5. The family file. Schools, healthcare, residence permit structure, and dependant inclusion are operational realities that determine whether a tax-driven relocation actually works.

Who the proposal best suits

The Türkiye proposal, if enacted, would be a strong fit for:

• HNW families with substantial foreign-source income (dividends, capital gains, royalties) who want a Mediterranean base and are willing to commit to actually living there.
• Entrepreneurs running multi-jurisdiction businesses where the bulk of income flows outside Türkiye.
• Families already considering Türkiye citizenship by investment who would convert that to a residence-and-tax base.

A weaker fit for:

• Families whose income is predominantly Türkiye-sourced (no exemption benefit).
• Families seeking an EU passport endgame — Türkiye's relocation does not lead there.
• Families who would prefer the certainty of an enacted regime today (Italy / Greece available now).

Frequently asked questions

What is Türkiye's proposed 20-year tax exemption? A proposal to exempt foreign-source income from Türkiye income tax for up to 20 years for individuals who become new Türkiye tax residents after the regime begins. As of writing it is a proposal, not enacted law.

How does Türkiye's proposal compare with Italy's and Greece's non-dom regimes? Italy and Greece both use a 15-year horizon with annual flat fees (Italy EUR 100K / EUR 200K; Greece EUR 100K). Türkiye's proposal goes further on duration but the final fee and eligibility structure remain to be defined.

Will I have to live in Türkiye to qualify? Yes — the regime targets new Türkiye tax residents, which under most current proposals means meeting the standard tax-residency tests (typically 183+ days per year or centre-of-vital-interests).

Does the exemption cover Türkiye-source income? Under the proposed structure, no. Türkiye-source income (Turkish-real-estate rent, Türkiye-company dividends, Türkiye employment) would remain taxed under standard rules.

Should I relocate now in anticipation? We advise against relocating on the basis of a proposed regime. Wait until the law is enacted and the implementing rules are published; pre-commitment can produce unintended exit-tax and double-tax consequences.

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Plan your Türkiye relocation with GLMBCP

We monitor the proposal closely and will publish updated guidance as the law evolves. For families weighing Türkiye against Italy, Greece, or the UAE, we model the full structure end-to-end. Book a private consultation →

Internal links to add: Italy Tax Regimes 2026 · Türkiye CBI ROI Analysis · Plan-B Citizenship

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