Moving to Turkey with Capital: How Law No. 7582 Exempts Income for 20 Years and Legalises Assets

What Exactly Turkey Has Adopted

The document was published in the Resmî Gazete — the Official Gazette of the Republic of Turkey —numbered 33270, dated 4th June 2026, and it amends several tax codes. There are two key points for those moving to Turkey with capital. The first is a new Article 20/D of the Income Tax Law, which introduces an exemption from taxation on foreign income for new residents. The second is temporary Article 19 of the Corporate Tax Law, which initiates a programme known as Varlık Barışı, translating to "Asset Peace." Detailed procedures are not within the law itself but in an ordinance (Tebliğ) that was issued a month later, on 4th July 2026.

The rationale behind these measures is clear from a government perspective. Turkey seeks a flow of private capital and wealthy residents, so the logic is simple: make moving with money tax-beneficial and integrate these funds into the legal financial system within the country. Understanding this motivation helps interpret the rules correctly — it’s not charity but a trade-off: benefit in exchange for capital brought into and kept within Turkey.

Twenty Years Tax-Free: Who Gets It and What’s the Catch?

Let’s begin by identifying who would need this provision. It’s aimed precisely at those relocating and continuing to earn income from abroad: remote salaries, dividends from foreign shares, rent from property in another country, profit from asset sales. Normally, such income would be taxed by Turkey for a new resident. Article 20/D removes this obligation — for twenty years.

Next comes a crucial condition without which the exemption doesn’t apply. The claimant must become a tax resident of Turkey and must not have been a resident in the previous three calendar years.

The logic is obvious: the provision is designed to attract new arrivals, not to liberate those already connected with the Turkish tax system. Past tax obligations in Turkey on property, securities, or capital gains, if they existed, don’t disqualify one from this benefit — this is specifically stated.

There’s one detail that will please many: the provision is retroactive to 1st January 2026. Those who relocated and obtained residency sometime in 2026 automatically qualify for the exemption, with no applications or bureaucracy needed.

Now for the pitfalls that aren’t immediately apparent.

The exempted income is completely excluded from reporting: it doesn’t require an annual declaration, and it isn’t mixed with declarations of other income.

The other side— the tax you have paid on this income abroad cannot be offset against the Turkish tax, and expenses related to exempt income will not reduce your base for other earnings. Most people don’t mind, but for those with complex incomes, it is worth sitting down and calculating in advance.

Varlık Barışı: A Capital Pass with Rates Down to Zero

The second mechanism addresses a different issue— not about future income, but about what has already been accumulated. Varlık Barışı offers the opportunity to legally bring assets into the Turkish system under favourable conditions.

A wide range is covered under the declaration: cash, foreign currency, gold, securities and other capital market instruments. It doesn’t matter if they are overseas or already in Turkey, but unaccounted for. They are declared through a Turkish bank or broker, with the deadline being 31 July 2027.

The initial rate is 5% of the declared value, and it is collected by the bank at the time of submission. But this is the ceiling, not a verdict: the rate decreases if the funds are not just brought in but also invested in Turkish instruments— fixed deposit, government bonds, lease certificates (sukuk), venture capital funds— and remain there for a term:

• Five years— the rate is zero

• Four years— 1%

• Three years— 2%

• Two years— 3%

• One year— 4%

A timing detail affecting the cost: starting 1 January 2027, the entire scale increases by half a percentage point. Therefore, declaring capital in 2026 is simply cheaper than dragging it out until 2027.

Step-by-Step Procedure

The regulation breaks down the procedure into clear steps:

•First. Submit a notification to a Turkish bank or broker about overseas assets— money, currency, gold, securities. The deadline remains the same: 31 July 2027.

•Second. Within two months from the date of notification, transfer the declared asset to an account opened in your name with a Turkish bank or broker. If the assets are physically brought in, they are legalised via a customs declaration.

•Third. The bank acts as the tax agent, withholding the tax at the required rate and remitting it to the budget no later than the 15th of the month following the notification month.

•Fourth. For assets already in Turkey but unaccounted for, the procedure is the same— notification plus confirmation by depositing in the bank or broker on the notification date.

Corrections should be known in advance: during the month of submission, the notification can still be amended, but once the asset is brought into Turkey, the amendment is closed, and after the programme's completion, no corrections can be made at all.

Automatic Data Exchange: Special Consideration for Those Moving from Russia

A question that arises for those moving from Russia: will the information about the Turkish account reach the former country? It's important not to confuse two different things here.

On paper, both Turkey and Russia are participants in the international system for the automatic exchange of financial account information, known as CRS (or AEOI), operating under the OECD.

The exchange mechanism works like this: account information is exchanged by tax authorities once a year, with data for the past year usually sent by the end of September of the following year.

But there is currently a gap between 'on paper' and 'in practice.' The actual exchange between Russia and a number of countries is frozen due to geopolitical circumstances, even though Russia has not formally withdrawn from the standard. The real status between two specific countries is a variable that depends on current agreements.

The practical takeaway for those relocating is this. Varlık Barışı resolves the issue of legalising money within Turkey— and only that. It neither disables the automatic exchange mechanism nor your tax obligations in the country where you were or remain a resident. These are parallel matters, and instead of relying on general statements, it's more prudent to check the exchange status with a tax consultant in both countries.

Why This Appears Advantageous Compared to Europe

The advantage of Turkey's approach becomes clearer when compared to Europe's trajectory. In recent years, the European Union has been moving towards closure: reducing 'golden visas' and tightening tax regimes for newcomers.

Portugal has blocked the preferential NHR regime for new applicants and simultaneously removed property from the investment path to residency. Spain has announced the winding down of the 'golden visa' through property purchase. Ireland and the Netherlands closed their investment visas even earlier. The EU's general direction is to narrow entry for investors and increase fiscal pressure.

In contrast, Turkey is heading in the opposite direction: extending long-term tax breaks on foreign income and opening a preferential gateway for capital. For those considering relocating and investing, this represents a significant difference in approach—not a promise of profit, but a factor that outweighs many others when comparing jurisdictions.

Counting on Fingers: Weighing Profit Against the Cost of Hurrying

To have a substantive discussion, let's assume a hypothetical figure. Suppose a person transfers a million dollars of savings to Turkey and wants to channel it through the programme.

Without investing in Turkish instruments, at the basic rate of 5%, you must give away $50,000. Place the same million in a fixed deposit or government bonds for five years—in this case, the tax rate is zero, and capital enters without tax, but with the obligation not to touch it for the entire period. In the middle of the scale: holding for a year costs 4% ($40,000), three years—2% ($20,000).

The moral of the calculation is simple: the benefit is directly proportional to the willingness to freeze funds.

Those who already intend to keep their capital in Turkey long-term and invest, get relief for free. Those who need money at hand quickly pay extra for speed. The figures here are for illustrative purposes of the mechanism, not as a calculation for anyone's real situation.

Considerations Before Filing a Declaration

The scheme looks profitable, but there are frameworks to the programme, which are best known in advance.

Tax residence in Turkey is not mandatory. To participate, it is sufficient to file a declaration through a Turkish bank and transfer the money within two months from the date of the declaration.

Zero rate requires patience. The zero rate is granted in exchange for keeping the money in Turkish instruments for five years. Withdraw earlier, and you revert to the basic 5%. For someone moving seriously and long-term, the condition seems natural; for short distances, the benefit pales.

The shield only applies to declared assets. There will be no checks or additional charges on declared assets. However, for other reasons, a tax audit is always possible—one declaration won't simultaneously resolve everything.

Banking control remains. The programme addresses the tax issue, but it doesn't negate the standard banking check of money origin (KYC/AML). These are two distinct procedures: tax amnesty and compliance regarding the source's legitimacy.

Overseas property enters indirectly. It is not declared directly, but until 31 July 2027, the property can be sold, and the money from the sale can be entered into the programme.

How It Relates to Purchasing Property

Both mechanisms, working together, solve the issue faced by nearly every investor moving with capital: how to legally bring money into the country and acquire a transparent tax status for it. This transparency forms the basis for making a substantial property purchase, gaining residency, and eventually acquiring citizenship through investment.

However, the benefit does not appear out of nowhere. Twenty years of relief come with the requirement of a clean three-year history, and a zero rate entails agreeing to freeze capital for five years. The outcome depends on each individual's timeframe, asset structure, and migration goals.

In Summary

For those moving to Turkey with capital and considering a timeline of five years or more, the combination of two provisions of Law No. 7582 offers a significant advantage, especially compared to the increasingly closed-off Europe.

The window for declaration remains open until 31 July 2027, and from 2027 onward, rates will rise, so it's more advantageous to enter earlier.

If the timeline is shorter or assets are complex, it is advisable to consult a tax specialist before submission, rather than after, and ensure you understand the tax implications in the country you are leaving.