Türkiye is launching a legislative campaign to transform itself into a premier global hub for multinational corporations and international investors, offering sweeping tax exemptions and long-term incentives to rival financial centers like Singapore and Hong Kong.
Treasury and Finance Minister Mehmet Şimşek has said a new proposal submitted to parliament aimed at attracting “high-quality financing,” specifically non-debt-creating capital and encouraging tech giants such as Google, Microsoft and Apple to establish regional headquarters within the country.
“Our goal is to become a center of attraction for international direct investment, to support exports and to bolster the manufacturing industry,” Şimşek told TRT Haber in an interview late on May 5, emphasizing that the government has been developing these measures for an extended period.
At the heart of the proposal is a bid to turn the Istanbul Financial Center (IFM) into a regional powerhouse. Under the new regulations, service centers that relocate to the IFM and generate at least 80 percent of their income from abroad will enjoy a 100 percent corporate tax exemption for 20 years. Companies choosing to settle elsewhere in Türkiye will still receive a substantial 95 percent tax discount.
The government is also setting its sights on the lucrative transit trade market. Currently dominated by hubs like the Netherlands and Hong Kong, transit trade through the IFM would be entirely exempt from corporate tax. For activities outside the center, the exemption is set at 95 percent.
“This will not create an impact overnight, but in the medium to long term, it will make Türkiye an important trade hub,” Şimşek noted.
To shore up the country’s industrial base, the bill proposes “dramatic” cuts to corporate tax rates for exporters. While the general corporate tax rate stands at 25 percent, the proposal seeks to slash this to 9 percent for manufacturing exporters and 14 percent for other export-oriented firms.
Şimşek stated the move is designed to narrow the foreign trade deficit by incentivizing export-based production, leveraging Türkiye’s large domestic market and strategic
location.
To support these industries, the government is also introducing income tax exemptions for highly qualified personnel. Foreign and local experts earning between four and six times the minimum wage will benefit from significant tax relief, a move aimed at securing the specialized talent required by multinational firms.
Beyond corporate entities, Türkiye is entering the global competition for high-net-worth individuals. Recognizing what Şimşek called “millionaire traffic,” the bill offers a 20-year tax exemption on all foreign-earned income for individuals who relocate their residency to Türkiye and bring their capital into the country.
Unlike previous “wealth amnesty” programs, the new regulations will require funds to remain within the Turkish financial system for a specified duration. The presidency will have the authority to adjust tax rates, ranging from 0 percent to 10 percent, based on how long the capital is held in Turkish banks or government bonds.
“If you earn something in Türkiye, we will tax it,” Şimşek clarified. “But when you bring what you earned from abroad to Türkiye, it will not be taxed.”
The minister expressed confidence that the package would yield rapid results, noting that several major companies have already expressed “serious interest” in the new framework. The proposal now awaits deliberation and approval by the parliament.
