Türkiye has enacted a major set of investment and tax reforms announced by President Recep Tayyip Erdoğan at the “Powerhouse for Investments in the Türkiye Century" program, held at the Dolmabahçe Working Office in Istanbul on April 24, 2026. Hosted by the Investment and Finance Office, the program brought together senior public officials and executives of leading international companies operating in Türkiye.
Following the program, a substantial part of the announced reform package entered into force with the publication of Law No. 7582 in Official Gazette No. 33270 on June 4, 2026. The new legislation introduces important incentives aimed at attracting international companies, global business functions, foreign capital, and qualified professionals to Türkiye.
One of the main reforms is the establishment of the Qualified Service Center regime, designed to encourage multinational companies to locate their regional and global management, coordination, and support functions in Türkiye. Eligible centers serving related companies in at least three countries may deduct 95 percent of qualifying foreign-sourced profits from their corporate tax base. The deduction increases to 100 percent for centers operating in the Istanbul Financial Center and designated industrial zones and may be applied for up to 20 accounting periods, subject to the relevant conditions.
The legislation also expands tax incentives for transit trade and overseas trading activities. Eligible companies may benefit from a 95 percent corporate tax deduction on profits generated from transactions conducted entirely abroad without the goods entering Türkiye. The deduction rises to 100 percent for qualifying companies operating in the Istanbul Financial Center and designated industrial zones.
Further measures seek to attract international talent and capital. Qualifying individuals who relocate to Türkiye and become tax residents may benefit from a 20-year income tax exemption on foreign-sourced income and gains. The legislation also introduces an asset repatriation mechanism covering eligible money, gold, foreign currency, securities, and other capital-market instruments held abroad.
The reforms further strengthen the Istanbul Financial Center by extending the 100 percent corporate tax deduction for qualifying financial service export income through 2047. Work also continues on the Investment and Finance Office's One-Stop Office model, which aims to simplify investment procedures and provide international investors with a single coordinated point of contact.
Through these measures, Türkiye is strengthening its position as a competitive powerhouse for investment, finance, trade, talent, and high-value corporate services.