The Turkish parliament has approved a bill introducing broad tax incentives aimed at encouraging the return of undeclared foreign assets and boosting investment and foreign currency inflows.
The legislation, approved early on May 21, would exempt individuals who do not reside in Türkiye and transfer income earned abroad into the country from income tax for 20 years.
A similar exemption would apply to recent residents who have not been taxed domestically in the past three years, provided they declare and register their overseas assets by July 31, 2027.
The package also included corporate tax reductions, setting export earnings tax rates at 9 percent for manufacturers and 11 percent for other exporters. It expanded tax deductions for transit trade and increases incentives for firms operating within the Istanbul Financial Center.
In addition, the law extended repayment periods for public debts from 36 to 72 months and raises the limit for unsecured deferred liabilities to 1 million Turkish Liras (around $22,110). It also introduced tax exemptions on a portion of salaries for employees working in qualified service centers.
Days before the MP’s approval, ruling Justice and Development Party (AKP) parliamentary group leader Abdullah Güler said the reforms aim to promote a “production- and export-oriented growth model” and improve Türkiye’s attractiveness for foreign investors.
On the other hand, Opposition parties strongly criticized the asset amnesty provision over concerns that that similar past measures had allowed illicit funds to enter the country.
