Quick Answers
What changed?
Three income tax communiqués published on 4 July 2026 introduced or clarified tax exemptions concerning foreign-source income, qualified service centre employees and employee share plans.
Who may benefit?
- Certain individuals becoming tax resident in Türkiye from 1 January 2026.
- Qualified personnel working at recognised qualified service centres.
- Employees receiving free or discounted shares from qualifying technostartup companies.
How long is the foreign-source income exemption available?
Twenty years, provided the statutory eligibility conditions are satisfied.
How much salary may be exempt at a qualified service centre?
Generally, up to three times the monthly gross minimum wage. The limit is five times the gross minimum wage for qualifying centres in specified industrial zones or the Istanbul Financial Center.
How much employee share benefit may be exempt?
Up to twice the employee's annual gross salary, subject to the company and share plan satisfying the relevant conditions.
1. Overview of the 2026 Income Tax Communiqués
On 4 July 2026, the Turkish Revenue Administration published three separate Income Tax General Communiqués in Official Gazette No. 33300:
- Income Tax General Communiqué No. 333
- Income Tax General Communiqué No. 334
- Income Tax General Communiqué No. 335
The three Communiqués regulate different incentive structures:
| Communiqué | Main subject |
|---|---|
| No. 333 | Twenty-year exemption for certain foreign-source income earned by qualifying individuals who become resident in Türkiye |
| No. 334 | Salary exemption for qualified personnel employed at qualified service centres |
| No. 335 | Income tax exemption for free or discounted shares granted to employees of qualifying technostartup companies |
Although all three measures concern personal income tax, they apply to different taxpayers and require separate eligibility assessments.
Part I: Twenty-Year Foreign-Source Income Exemption
2. What Is Türkiye's Twenty-Year Foreign Income Tax Exemption?
Income Tax General Communiqué No. 333 regulates an exemption for foreign-source income earned by certain individuals who become resident in Türkiye.
A qualifying individual's income and gains derived outside Türkiye may be exempt from Turkish income tax for twenty years.
The exemption applies only to natural persons. Companies and other corporate taxpayers cannot benefit from it.
The regime is available to individuals who become resident in Türkiye from 1 January 2026, provided that they satisfy the historical residence and tax registration requirements.
3. Main Eligibility Conditions
An individual must satisfy all of the following core conditions:
- The individual must become resident in Türkiye.
- The individual must become resident from 1 January 2026 onwards.
- The individual must not have had a domicile in Türkiye during the three calendar years preceding the year in which Turkish residence begins.
- The individual must not have had Turkish tax liability during those three preceding calendar years, subject to limited exceptions.
- The individual must submit the application within the applicable deadline.
- The individual must obtain a Foreign-Source Income and Gains Exemption Certificate from the competent tax office.
The relevant test is based on the three preceding calendar years, not merely the thirty-six months immediately preceding the residence date.
4. Application Deadline
The application must generally be submitted by the end of the calendar year in which the individual becomes resident in Türkiye.
Where the individual becomes resident during the final two months of the calendar year, the application may be submitted by the end of the second month of the following calendar year.
Missing the deadline prevents the individual from obtaining the exemption certificate, even where the substantive residence and tax history conditions are otherwise satisfied.
5. Official Example: Timely Application
Timely application
Taxpayer (A) became resident in Türkiye on 12 July 2026 and applied to the relevant tax office for an exemption certificate on 1 December 2026.
The tax office established that the taxpayer had neither a Turkish domicile nor Turkish tax liability during 2023, 2024 and 2025.
The taxpayer will therefore receive the exemption certificate. The example confirms that an application made during the same calendar year as the commencement of Turkish residence is timely.
6. Official Example: Late Application
Late application
Taxpayer (B) became resident in Türkiye on 2 March 2028 but did not apply for the exemption certificate until 1 May 2030.
The tax office confirmed that the taxpayer had not been resident or registered as a taxpayer in Türkiye during 2025, 2026 and 2027.
However, the application was not submitted by the end of 2028, which was the calendar year in which the taxpayer became resident.
The exemption certificate will therefore not be issued. This example shows that compliance with the application deadline is an independent condition.
7. Starting a Turkish Business After Becoming Resident
Starting a commercial activity in Türkiye after becoming resident does not automatically prevent the individual from obtaining the foreign-income exemption.
Official example
Taxpayer (C) became resident in Türkiye on 12 May 2028.
The taxpayer began carrying out retail sales of clothing products in Türkiye on 30 October 2028 and applied for the exemption certificate on 15 November 2028.
Provided that the taxpayer had neither Turkish domicile nor Turkish tax liability during 2025, 2026 and 2027, the exemption certificate will be issued.
The Turkish commercial activity remains subject to ordinary Turkish taxation. The exemption applies only to qualifying foreign-source income.
8. Returning to Türkiye After a Previous Period of Residence
A person who previously lived in Türkiye must carefully review the three preceding calendar years.
Returning resident – ineligible
Taxpayer (D) had a domicile in Türkiye during 2022, left Türkiye on 10 November 2024 and moved back to Türkiye during 2027.
The taxpayer applied for the exemption certificate on 9 November 2027.
Because the taxpayer was resident in Türkiye during 2024, which falls within the three preceding calendar years, the exemption certificate will not be issued.
The fact that the individual had left Türkiye before the year of return does not remove the three-calendar-year condition.
9. Which Previous Turkish Tax Liabilities Are Permitted?
The Communiqué contains an important exception to the general prohibition on prior Turkish tax liability.
Previous Turkish tax liability arising from the following income categories does not, by itself, prevent access to the exemption:
- income from immovable property
- income from movable capital
- capital gains
By contrast, prior tax liability arising from salary, commercial income or other income categories may prevent eligibility.
Previous Turkish rental income – eligible
Taxpayer (E) became resident in Türkiye on 12 May 2028.
The taxpayer had earned rental income in Türkiye since 7 May 2026 and had filed tax returns concerning that income.
Provided that the taxpayer applies by the end of 2028 and satisfies the remaining requirements, the prior rental income tax liability will not prevent the exemption certificate from being issued.
Previous salary income – ineligible
Taxpayer (F) became resident in Türkiye on 23 July 2028.
During 2026, the taxpayer received salary income in Türkiye from a single employer, subject to withholding tax.
Because the taxpayer earned Turkish salary income during the three preceding calendar years, the exemption certificate will not be issued.
Previous commercial activity – ineligible
Taxpayer (G) became resident in Türkiye on 15 September 2028 and applied for an exemption certificate on 20 December 2028.
The taxpayer had been registered in Türkiye for commercial income purposes since 1 January 2026.
Because the taxpayer had Turkish commercial tax liability during one of the three preceding calendar years, the exemption certificate will not be issued.
The distinction between permitted and disqualifying prior Turkish tax liabilities is therefore material.
10. What Foreign Income Is Covered?
The exemption applies to income and gains derived outside Türkiye. Depending on the source and circumstances, this may include:
- foreign rental income
- dividends paid by foreign companies
- foreign interest and investment income
- foreign commercial income
- foreign professional income
- foreign capital gains
- other income legally sourced outside Türkiye
The Communiqué does not exempt Turkish-source income merely because the customer, payer or contractual counterparty is located abroad.
The source of the activity and income must therefore be examined separately.
11. Tax Return Treatment
Qualifying foreign-source income covered by the exemption:
- does not require an annual Turkish income tax return
- is not included in a Turkish return filed for other taxable income
The taxpayer may therefore remain required to file a Turkish return for Turkish-source income while excluding exempt foreign income.
Turkish and foreign rental income
Taxpayer (H), who benefits from the exemption, earns:
- rental income from property in Türkiye
- movable capital income in Türkiye
- rental income from property outside Türkiye
The foreign rental income falls within the exemption and is not included in the annual income tax return filed for the taxpayer's Turkish income. The Turkish income remains subject to the ordinary declaration rules.
Rental income from Turkish property
Taxpayer (I), who benefits from the exemption, earns rental income from a property located in Türkiye.
The rental income does not qualify because the property generating the income is located in Türkiye. The income must be assessed under the ordinary Turkish income tax rules.
Services performed in Türkiye for foreign clients
Taxpayer (J), who benefits from the exemption, works as an engineer in Türkiye and provides consultancy services to foreign-resident clients concerning their investments in Türkiye.
The professional activity is performed in Türkiye.
The resulting self-employment income is therefore not covered by the foreign-source income exemption, even though the clients are located outside Türkiye. A foreign customer does not automatically make the income foreign-source.
Turkish and foreign dividends and rental income
Taxpayer (K) receives the following income during 2026:
- TRY 600,000 rental income from a property in Istanbul
- TRY 500,000 dividend income from a Turkish resident company
- dividend income from a company resident in Spain
- rental income from a property in Monaco
The Turkish rental income and Turkish dividend income are not covered by the exemption.
The dividend from the Spanish company and the rental income from the Monaco property are foreign-source income and fall within the exemption. The foreign dividend and foreign rental income are not declared in Türkiye and are not included in the return filed for the Turkish income.
12. Expenses Related to Exempt Foreign Income
Expenses and costs relating to exempt foreign-source income cannot be deducted when calculating taxable Turkish income.
A taxpayer cannot therefore:
- exclude the foreign income from taxation, and
- use expenses relating to that exempt income to reduce taxable Turkish income.
Separate accounting and documentation may be required where an individual has both taxable Turkish income and exempt foreign income.
13. Foreign Tax Credits
Taxes paid outside Türkiye on income covered by the exemption cannot be credited against Turkish income tax.
This follows from the fact that the relevant foreign income is not included in the Turkish income tax base.
14. Incorrect Use of the Exemption
Where it is later established that the taxpayer did not satisfy the eligibility conditions:
- the exemption certificate may be cancelled
- previously unassessed tax may be collected
- a tax loss penalty may be imposed
- late payment interest may be charged
Undeclared prior commercial activity
Taxpayer (L) became resident in Türkiye on 12 May 2026 and obtained an exemption certificate on 1 December 2026.
The tax office had initially established that the taxpayer had no domicile or tax liability in Türkiye during 2023, 2024 and 2025.
During a tax inspection in 2027, it was discovered that the taxpayer had conducted an unregistered commercial activity and earned commercial income. Tax liability was then established ex officio for 2025 and 2026.
Because the taxpayer should have been registered for commercial income and did not satisfy the exemption conditions, the exemption certificate will be cancelled from 12 May 2026.
Tax arising from undeclared foreign income will be collected together with a tax loss penalty and late payment interest. The example shows that an exemption certificate does not provide permanent protection where the underlying information is incomplete or incorrect.
15. Non-Residents and Transfers to Turkish Bank Accounts
A non-resident individual is generally taxable in Türkiye only on Turkish-source income.
The transfer of foreign money or foreign-source income into a Turkish bank account does not, by itself, convert the amount into Turkish-source taxable income.
Official example
Individual (M) is domiciled in the United Arab Emirates and is not resident in Türkiye.
The individual:
- transfers USD 100,000 from abroad to a bank account in Türkiye
- transfers EUR 50,000 of rental income earned from property in France to the same Turkish account
Because the individual is not resident in Türkiye and the income was earned outside Türkiye, the transfer and the foreign rental income are not taxable in Türkiye.
This example concerns the general taxation of non-residents. It is separate from the twenty-year exemption available to qualifying Turkish residents.
Part II: Qualified Service Centre Employee Salary Exemption
16. What Is the Qualified Service Centre Salary Exemption?
Income Tax General Communiqué No. 334 regulates an income tax exemption for qualified personnel employed by qualified service centres defined under Türkiye's foreign direct investment legislation.
The exemption applies to the qualifying portion of the employee's salary. It does not exempt all salary without limitation.
The standard exemption limit is three times the monthly gross minimum wage.
For qualifying service centres located in certain approved industrial zones or operating in the Istanbul Financial Center under a participant certificate, the limit is five times the monthly gross minimum wage.
17. Standard and Increased Limits
| Location or status of service centre | Maximum exempt monthly salary |
|---|---|
| Ordinary qualified service centre | Three times the gross minimum wage |
| Qualified centre in an approved industrial zone | Five times the gross minimum wage |
| Qualified centre operating in the Istanbul Financial Center with a participant certificate | Five times the gross minimum wage |
The President is authorised to reduce the three-times and five-times limits to one multiple or increase them up to twice their stated amounts. Any future change should therefore be checked for the relevant payroll period.
18. What Counts as Salary?
The exemption is not limited to base monthly salary. Payments and benefits treated as salary may include:
- monthly salary
- overtime payments
- bonuses
- premiums
- allowances
- compensation
- expense-related payments
- benefits capable of being represented in money
- other payments made in connection with employment
The legal description given to the payment does not change its salary character.
19. Conditions for the Exemption
The employee must be:
- employed at a qualified service centre defined under the relevant legislation, and
- recognised as qualified service personnel.
A person working at the same company but outside the qualifying personnel or centre structure cannot automatically benefit.
The part of the salary exceeding the applicable threshold remains taxable under the ordinary rules.
20. Official Example: Salary Fully Below the Three-Times Limit
Full salary exempt
Qualified employee (B) began working at Qualified Service Centre (A) in November 2026.
The employee received a monthly gross salary of TRY 90,000.
The 2026 monthly gross minimum wage used in the Communiqué is TRY 33,030.
The three-times exemption limit is:
TRY 33,030 × 3 = TRY 99,090
Because the TRY 90,000 salary is below TRY 99,090, the full salary is exempt from income tax.
21. Official Example: Salary Exceeding the Three-Times Limit
Salary partially taxed
Qualified employee (E) began working at Qualified Service Centre (D) in July 2026 and received a monthly gross salary of TRY 200,000.
The exemption limit is:
TRY 33,030 × 3 = TRY 99,090
The portion up to TRY 99,090 falls within the exemption.
The portion exceeding TRY 99,090 is taxed under the ordinary rules. The employer must calculate the income tax on the taxable portion, apply the relevant minimum wage income tax offset and report the remaining tax through the withholding and premium service return for the following month.
22. Official Example: Istanbul Financial Center
Istanbul Financial Center – five-times limit
Qualified employee (G) works at Qualified Service Centre (F), which operates in the Istanbul Financial Center under a participant certificate.
The employee received a gross salary of TRY 150,000 in August 2026.
The applicable five-times exemption limit is:
TRY 33,030 × 5 = TRY 165,150
Because the TRY 150,000 salary is below TRY 165,150, the entire salary is exempt from income tax.
23. Stamp Tax Treatment
The part of the salary exempt from income tax is also exempt from stamp tax.
The part exceeding the applicable limit is subject to:
- income tax
- stamp tax
Employers must therefore apply the exemption limit consistently in both income tax and stamp tax calculations.
24. Payroll Implementation Points
Qualified service centres should verify:
- whether the centre has the required legal status
- whether each employee falls within the qualified personnel definition
- whether an Istanbul Financial Center participant certificate is valid
- whether the relevant industrial zone has been approved
- which payments and benefits form part of gross salary
- the applicable gross minimum wage for each payroll period
- the correct treatment of the excess amount
- the corresponding stamp tax treatment
Part III: Employee Share Exemption for Technostartup Companies
25. What Is the Employee Share Tax Exemption?
Income Tax General Communiqué No. 335 amends the rules applicable to shares granted by qualifying technostartup companies to employees.
A technostartup company meeting the criteria determined by the Ministry of Industry and Technology may grant shares to an employee:
- free of charge
- at a discounted price
The resulting benefit is treated as employment income.
However, the portion of the benefit that does not exceed twice the employee's annual gross salary may be exempt from income tax.
The amendments introduced by Law No. 7582 took effect on 4 June 2026.
26. How Is the Exempt Benefit Calculated?
For free shares, the employment benefit is generally based on the fair market value of the shares when granted.
For discounted shares, the benefit is the difference between:
- the fair market value of the shares
- the amount paid by the employee
The maximum exempt amount is:
Employee's annual gross salary × 2
Any benefit exceeding this amount is treated as taxable net salary and must be grossed up for income tax purposes.
27. Official Example 1: Fair Value Below the Exemption Limit
Full benefit exempt
Technostartup company (A) A.Ş. granted employee (B) free shares on 30 September 2026.
The fair market value of the shares was TRY 5,000,000.
The employee's annual gross salary for 2026 was TRY 2,600,000.
The exemption limit is:
TRY 2,600,000 × 2 = TRY 5,200,000
Because the TRY 5,000,000 share value is below the TRY 5,200,000 limit, the entire benefit is exempt from income tax.
28. Official Example 2: Fair Value Exceeding the Limit
Benefit partially taxed
Technostartup company (C) A.Ş. granted employee (D) free shares with a fair market value of TRY 2,500,000 on 10 June 2026.
The employee's annual gross salary was TRY 1,200,000.
The exemption limit is:
TRY 1,200,000 × 2 = TRY 2,400,000
Accordingly:
- TRY 2,400,000 is exempt
- TRY 100,000 exceeds the limit
- the TRY 100,000 excess must be treated as net salary, grossed up and taxed
29. Official Example 3: Discounted Shares
Discounted share acquisition
Employee (F) was given the right to purchase shares representing 1% of technostartup company (E) A.Ş. at a 50% discount.
On 29 September 2026:
- the fair market value of the shares was TRY 5,000,000
- the employee paid TRY 2,500,000
- the employment benefit was therefore TRY 2,500,000
The employee's annual gross salary was TRY 1,500,000.
The exemption limit is:
TRY 1,500,000 × 2 = TRY 3,000,000
Because the TRY 2,500,000 benefit does not exceed TRY 3,000,000, the entire benefit is exempt.
30. When the Annual Gross Salary Is Not Yet Known
The employee's final annual gross salary may not be known when the shares are granted. In that case:
- the gross salary for the month in which the shares are granted may be multiplied by twelve
- the annualised amount is then multiplied by two
- the provisional exemption is calculated
- the calculation is reviewed at the end of the year against the actual annual gross salary
- any required correction is made
The monthly gross salary includes relevant salary components paid during that month, including salary, overtime and bonuses.
31. Official Example 4: Additional Exemption After Year-End Review
Year-end correction – additional exemption
Technostartup company (G) A.Ş. granted employee (H) free shares worth TRY 3,200,000 on 26 February 2027.
The employee's annual salary was not known at that date. The February gross salary was TRY 120,000.
The provisional annual salary was calculated as:
TRY 120,000 × 12 = TRY 1,440,000
The provisional exemption limit was:
TRY 1,440,000 × 2 = TRY 2,880,000
Initially: TRY 2,880,000 was exempt and TRY 320,000 was treated as taxable salary.
At the end of 2027, the employee's actual annual gross salary was established as TRY 1,800,000.
The final exemption limit was therefore:
TRY 1,800,000 × 2 = TRY 3,600,000
Because the share benefit was TRY 3,200,000, the whole amount qualified. The employer must correct the withholding and premium service return for February 2027 so that the previously taxed TRY 320,000 is also treated as exempt.
32. Official Example 5: Excess Exemption Corrected at Year-End
Year-end correction – excess exemption
Technostartup company (I) A.Ş. granted employee (İ) free shares worth TRY 4,000,000 on 11 March 2027.
The employee received TRY 210,000 in March, including salary, overtime and a bonus.
The provisional annual salary was:
TRY 210,000 × 12 = TRY 2,520,000
The provisional exemption limit was:
TRY 2,520,000 × 2 = TRY 5,040,000
The full TRY 4,000,000 benefit was initially exempt.
At the end of 2027, the employee's actual annual gross salary was TRY 1,950,000.
The final exemption limit was:
TRY 1,950,000 × 2 = TRY 3,900,000
The company had therefore granted an excessive exemption of:
TRY 4,000,000 − TRY 3,900,000 = TRY 100,000
The employer must correct the March 2027 withholding and premium service return. The TRY 100,000 excess is grossed up and taxed. The tax is collected with late payment interest but without a tax loss penalty.
33. Minimum Holding Period and Tax Recapture
The tax exemption is linked to the length of time for which the employee retains the shares.
Where the employee disposes of the shares:
| Disposal period | Tax exemption recaptured |
|---|---|
| Within two full years after acquisition | 100% |
| During years three or four | 75% |
| During years five or six | 25% |
| After more than six years | No recapture |
The tax is collected from the employer together with late payment interest. No tax loss penalty is imposed solely because the holding-period condition was breached.
The limitation period for taxes not collected because of the exemption begins at the start of the calendar year following the employee's disposal of the shares.
34. Official Example 6: Holding-Period Outcomes
Holding-period scenarios
Technostartup company (J) A.Ş. granted employee (K) free shares with a fair market value of TRY 4,000,000 on 31 March 2027.
The employee's annual gross salary was TRY 2,500,000.
The exemption limit was:
TRY 2,500,000 × 2 = TRY 5,000,000
The full share benefit was exempt. The tax consequences depend on when the employee sells the shares:
- sale within two full years: 100% of the exempt tax is recovered
- sale during years three or four: 75% is recovered
- sale during years five or six: 25% is recovered
- sale after more than six years: the full exemption is retained
35. Official Example 7: Sale During the Fourth Year
75% recapture
Technostartup company (L) A.Ş. granted employee (M) free shares worth TRY 2,000,000 on 3 September 2026.
The employee's annual gross salary was TRY 900,000.
The exemption limit was:
TRY 900,000 × 2 = TRY 1,800,000
Accordingly: TRY 1,800,000 was exempt and TRY 200,000 was taxed.
The employee sold the shares on 5 October 2029.
Because the sale occurred during the fourth year following acquisition, 75% of the tax previously exempted is collected from the employer with late payment interest and without a tax loss penalty.
36. Official Example 8: Sale During the Fifth Year
25% recapture
Technostartup company (N) A.Ş. granted employee (O) free shares worth TRY 2,000,000 on 16 September 2026.
The employee's annual gross salary was TRY 1,080,000.
The employee sold the shares on 4 November 2030, after the four-year period had expired and during the fifth year.
Accordingly, 25% of the income tax that was not collected because of the exemption is recovered from the employer with late payment interest and without a tax loss penalty.
37. Employer Notification Obligation
Where the employee disposes of exempt shares before the required holding period expires, the employer must notify the tax office using the petition included in Annex 2 of the Communiqué.
The resulting tax assessment:
- is made without a tax loss penalty
- includes late payment interest
- does not require correction of the original withholding and premium service return solely because of the subsequent disposal
- does not affect the employee's salary tax base for the original period or subsequent periods
Employers should therefore include employee notification obligations in share plan documents.
38. Shares of Another Group Company
The employee does not necessarily need to receive shares in the direct employer. The employee may receive free or discounted shares:
- held by the employer in another group company
- transferred directly by another company in the same corporate group
The resulting benefit is still treated as salary paid by the employer company.
Group company shares
Technostartup company (Ö) A.Ş. granted employee (R) free shares in group company (P) A.Ş. on 15 March 2027.
The shares were worth TRY 4,000,000.
The employee's annual gross salary was TRY 3,000,000.
The exemption limit was:
TRY 3,000,000 × 2 = TRY 6,000,000
Because the benefit was below the TRY 6,000,000 limit, the full TRY 4,000,000 was exempt. The fact that the shares belonged to another company in the same group did not prevent the exemption.
39. Leaving Employment or Death of the Employee
Leaving employment does not stop the holding period from running. The period during which the former employee continues to hold the shares after leaving the company is included in the calculation.
Where the employee dies, the period during which the heirs retain the shares is also included.
Shares retained after leaving employment
Technostartup company (S) A.Ş. granted employee (Ş) free shares worth TRY 1,850,000 on 11 November 2026.
The employee's annual gross salary was TRY 1,200,000.
The employee left the company on 29 August 2029 but retained the shares until 19 December 2033.
Because the shares were held for more than six years, including the period following termination of employment, the employee retains the full exemption. No income tax assessment is made.
40. Comparison of the Three Tax Incentives
| Issue | Foreign-source income | Qualified service centre salary | Technostartup shares |
|---|---|---|---|
| Beneficiary | Qualifying individual becoming resident in Türkiye | Qualified employee | Employee receiving shares |
| Main tax benefit | Foreign income exempt for 20 years | Monthly salary exemption | Share benefit exemption |
| Standard limit | Qualifying foreign income | Three times gross minimum wage | Twice annual gross salary |
| Increased limit | Not applicable | Five times gross minimum wage in specified locations | Not applicable |
| Certificate required | Exemption certificate from tax office | Centre and personnel must satisfy required status | Employer must qualify as a technostartup company |
| Main deadline | Application by the statutory deadline | Monthly payroll reporting | Payroll and year-end correction requirements |
| Continuing condition | Residence and eligibility conditions | Continued qualifying employment and centre status | Shareholding period |
| Main recapture risk | Conditions later found not to have been satisfied | Incorrect payroll application | Early disposal of shares |
41. Practical Compliance Checklist
Individuals moving to Türkiye
Before relying on the twenty-year exemption:
- Review residence and tax records for the previous three calendar years.
- Identify any previous Turkish salary, business, rental, investment or capital gains income.
- Determine the date on which Turkish residence begins.
- Calculate the statutory application deadline.
- Obtain the exemption certificate.
- Separate Turkish-source and foreign-source income.
- Retain evidence regarding the location and source of foreign income.
- Avoid deducting foreign-income expenses from taxable Turkish income.
Qualified service centres
Employers should:
- confirm the legal status of the centre
- identify qualified service personnel
- verify whether the three-times or five-times limit applies
- include all salary-related benefits in the calculation
- tax the portion exceeding the limit
- apply the corresponding stamp tax exemption
- retain the participant certificate or industrial zone documentation
Technostartup companies
Employers should:
- confirm technostartup qualification
- establish the fair market value of the shares
- calculate the employee's annual gross salary
- apply the two-times salary limit
- conduct a year-end true-up where annual salary was estimated
- monitor employee disposals
- require employees to report share sales
- notify the tax office where required
- maintain records for group company shares
- monitor holding periods after employment terminates
Frequently Asked Questions
What are Türkiye's main new personal income tax incentives for 2026?
The principal measures covered by Communiqués No. 333, 334 and 335 concern a twenty-year exemption for certain foreign-source income, salary exemptions for qualified service centre personnel and employee share exemptions for qualifying technostartup companies.
Who can benefit from the twenty-year foreign income exemption?
Natural persons who become resident in Türkiye from 1 January 2026 may benefit if they did not have a Turkish domicile or disqualifying Turkish tax liability during the previous three calendar years and obtain the required exemption certificate on time.
Can companies benefit from the twenty-year foreign income exemption?
No. The exemption is available only to natural persons. Corporate taxpayers cannot benefit.
How long does the foreign-source income exemption last?
The exemption applies for twenty years, subject to continued compliance with the applicable conditions.
Is foreign income included in a Turkish tax return?
Foreign income covered by the exemption is not declared. It is also excluded from a Turkish return filed for other taxable income.
Does transferring foreign income to Türkiye make it taxable?
A bank transfer alone does not determine the source of the income. The Communiqué confirms that a non-resident's transfer of foreign funds or foreign rental income to a Turkish bank account does not, by itself, create Turkish taxable income.
Is income from a foreign client automatically foreign-source?
No. Services performed in Türkiye may generate Turkish-source income even where the customer is located abroad.
Does previous Turkish rental income prevent the twenty-year exemption?
Not necessarily. Previous tax liability arising from Turkish immovable property income, movable capital income or capital gains does not automatically prevent eligibility.
Does previous Turkish salary income prevent the exemption?
It may. The Communiqué provides an example in which salary income earned in Türkiye during one of the previous three calendar years prevents the exemption certificate from being issued.
When must the foreign-income exemption application be filed?
The application must generally be filed by the end of the calendar year in which the individual becomes resident. Individuals becoming resident during the final two months may apply by the end of the second month of the following year.
What happens if the application is late?
The exemption certificate will not be issued, even where the other substantive requirements are satisfied.
What salary exemption applies at a qualified service centre?
The exempt amount is generally limited to three times the monthly gross minimum wage.
What is the higher qualified service centre limit?
The limit is five times the gross minimum wage for qualified service centres in specified approved industrial zones and centres operating in the Istanbul Financial Center under a participant certificate.
Does the qualified service centre exemption apply to bonuses?
Yes. Salary may include monthly salary, overtime, bonuses, premiums, allowances and other employment benefits.
Is the exempt salary also exempt from stamp tax?
Yes. The portion exempt from income tax is also exempt from stamp tax. The portion exceeding the limit remains subject to both taxes.
How is the technostartup employee share exemption calculated?
The exempt benefit is limited to twice the employee's annual gross salary.
How are discounted shares treated?
The benefit is the difference between the fair market value of the shares and the price paid by the employee.
What happens when the employee's annual salary is not known?
The gross salary for the month of the share grant may be annualised by multiplying it by twelve. The resulting exemption must be compared with the employee's actual annual gross salary at year-end and corrected where necessary.
What happens if exempt shares are sold early?
The tax exemption is partly or fully recovered depending on the holding period. The recovery rate is 100% within two full years, 75% during years three or four and 25% during years five or six.
When is the full employee share exemption retained?
The full exemption is retained where the shares are held for more than six years.
Does leaving the company interrupt the holding period?
No. The period during which the former employee continues to hold the shares after leaving employment is included.
Can shares in another group company qualify?
Yes. Shares in another company within the same corporate group may qualify, provided the remaining conditions are satisfied.
Related Guides
This guide is based exclusively on Income Tax General Communiqués No. 333, 334 and 335 published in Official Gazette No. 33300 on 4 July 2026. It provides general information and does not constitute legal or tax advice.
