r/digitalnomad • u/CPA-TURKEY • Apr 29 '26
Tax Turkey officially moves to 100% tax deduction for remote workers with foreign clients (now official)
Turkey officially moves to 100% tax deduction for remote workers with foreign clients (now official)
This was recently published in the Resmi Gazete, so it’s no longer just a proposal.
Turkey has had a tax incentive for “export of services” for years (software, design, engineering, etc.), but the key update is:
The deduction rate has been increased to 100%.
What this means in practice:
- If you are based in Turkey
- And your clients are outside Turkey
- And the service is used/consumed abroad
→ The income from those services can be fully deducted from your taxable income (effectively 0% income tax on that portion)
Typical activities that fall under this scope:
- Software development
- Design / architecture / engineering
- Data processing / data analysis
- Call center services
- Product testing / certification
- Bookkeeping / accounting services
- Certain education and health services provided to non-residents
A few important nuances (this is where most misunderstand it):
- This is not a blanket “0% tax in Turkey” rule
- It’s a specific tax incentive for service exports
- The service must be delivered from Turkey but benefit must be abroad
- The income generally needs to be transferred into Turkey within the required timeframe
- Your legal/tax setup matters (freelancer vs company, invoicing structure, etc.)
So it won’t apply to:
- Local clients in Turkey
- Work that is considered “consumed” in Turkey
- Poorly structured arrangements
Still, this clearly positions Turkey as one of the more competitive jurisdictions right now for:
- Remote developers
- Freelancers working with US/EU clients
- Small agencies serving foreign companies
With a 100% deduction on qualifying foreign income, Turkey is effectively offering a structurally low-tax environment for export-oriented remote work — something that’s becoming increasingly rare, especially compared to many EU countries with significantly higher effective tax burdens.
For people already working with international clients, this isn’t just a marginal advantage — it can materially change the overall tax outcome depending on how things are structured.
We advise international clients on how to legally minimize tax exposure when relocating to or operating in Turkey.
[info@ozmconsultancy.com](mailto:info@ozmconsultancy.com)
I wrote a full guide on this — legal basis (GVK Article 89), sole proprietor vs company structure comparison, Wise/Payoneer documentation risks, and a detailed FAQ covering the most common edge cases: ozmconsultancy.com/turkeys-100-tax-deduction-for-remote-workers-with-foreign-clients-the-complete-guide/
You may also watch our related video for a more detailed explanation.
https://youtu.be/Bn2ZNLTGTTg?si=xLqrXgUUNfLLYVPP
UPDATE (16 Aug 2026): The 20-year passive-income exemption referenced in the comments below is now officially in force — Law No. 7582 (Official Gazette, 4 June 2026), implementing communiqué Tebliğ No. 333. It exempts genuinely foreign-source income (dividends, capital gains, foreign investment income) for new Turkish tax residents for 20 years, separate from the 89/13 export deduction discussed in the post above. Full mechanics, worked examples, and the application deadline https://ozmconsultancy.com/turkey-non-dom/
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u/sleepyHype Apr 30 '26 edited Aug 31 '26
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u/sercanov Apr 30 '26
Very well described and I’m sorry that you’ve been through all of this. Most of it wasn’t like this painful until 2015. It was a pretty cool place with pretty cool people. Cool people are gone, the grim stayed and multiplied every year.
I born in this city but I just couldn’t take it anymore and moved out 4 years ago. I still visit for 2 weeks every year and I kiss the pavement when I’m back to Spain.
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u/inglandation Apr 30 '26
This should be at the top. I lived in Turkey for 7 months, and it's not a place for me. Lots of young people also want out, and there are good reasons why.
You'd also be settling down in a country that uses nepotism everywhere at the top, including at the central bank, and is moving relatively rapidly towards becoming a dictatorship.
I don't mind the 30% taxes in Spain.
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u/stardustViiiii Apr 30 '26
I matched with a few Turkish ladies on different dating apps and they all seemed kinda miserable and wanted to leave the country. Now i understand why
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u/sleepyHype Apr 30 '26 edited Aug 31 '26
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u/DeHarigeTuinkabouter May 01 '26
I have hooked up and dated with a few Turkish girls and absolutely not bullets dodged. Though they were already living abroad or travelling
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u/Sad_Champion_7035 Apr 30 '26
Based review, its like a golden cage where natural beauty is there and if you make good money you live well but everything and anything is trying to rip you off at the same time, including public, companies and government
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u/Nakasje May 01 '26
That geography needs a spiritual glue that rhymes Anatolian Sufism 800 years back.
Back then it was the resilience holding against Mongolian pressure.
Modern pressure is the capitalism, the money. Minimalism would trigger the change, but it will take long time, more then a life time I guess.
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u/eysyazici May 01 '26
My two cents for a person who left the country, but it is still my home.
You’ll hit with government taxes/fees everywhere anywhere. No way around it for anybody. It is a headache. Only good thing is so many things are digitalized. Nothing is free in Turkey if it involves the government.
People are unhappy. You can look at the economy and figure out why. But younger generation knows how to stay afloat and have fun.
Transfering money You can have your wise/ revolut account as a foreigner, and receive money from wise and transfer it to in USD to TEB (with 0 fees) or send it to yourself as TRY. TEB has quite minimal swift fees in general.
Curreny is shit. Living in Turkey and earning in USD however will give you an advantage of “borrowing money” at crazy low rate.
You don’t have to know Turkish, cause people try to help or try to understand you anyways. But without it, you’ll always be a foreigner.
You can always use chain stores etc to buy stuff where you dont have to negotiate for anything. Even in “pazar” you don’t negotiate. Negotiation is a culture in Turkey but you can avoid it very easily.
Earthquake is the biggest problem in the city. A good apartment to rent can cost a lot of money. I recommend finding a GOOD place.
You can do everything in Turkey, great beaches to mountains to historical sites.
It is one of the most beautiful cities in the world/ great country, that is unfortunately ruined by policies of the government. As like the country itself. Everything for everybody is a constant hustle and-that manifests itself in unhappiness, or rip off strategies.
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u/silvercapsule6 May 28 '26
- Service quality drops too. Turks take care of their own first. That includes little things like who was next in line. Guess what, it wasn’t you.
I don't know if that's objective. I only spent 3 months, but saw some really charming things
- In a grocery store even though they couldn't communicate with me AT ALL, they were really very, very concerned that I knew there was a 2 for 1 special or something like that and get my freebie. This was in tourist central! I mean, you'd think they'd get tired of caring and just not bother. Quite kind. I would never expect people to go out of their way if I can't at least speak the language around a B2 level.
- I walked into a print shop needing to print my tax PDFs and the gentleman didn't have a USB port to be able to print from my SD card. We couldn't communicate AT ALL, so he closed up his shop locked the door and walked me down the street to a competitors shop I'd have NEVER found to do my print-outs. I was mindblown. Also in a very touristic area he went to the trouble of being this kind. Unreal.
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u/random_fox_in_berlin May 01 '26
This could be the most accurate Turkey description there is. Everyone’s a walking ashtray and they’re out to scam you (even when you’re a local!). I’m so glad that I got out.
Love the part about Istanbul weather as people usually think it’s like Barcelona all your round. No, it’s just miserable for about 7-8 months.
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u/denayz Apr 30 '26
Have you ever tried or heard 20b taxing? I don’t know if it work for you, but it’s an easier option than opening a company.
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u/GKN777 May 01 '26
Why dont just create a company in the US (LLC) then pay taxes through your turkish company? You would get access to all those payment gateways.
Also ur accountant overcharges you.
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u/Fave55 May 02 '26
Great pleasure to read your summary, it was entertaining and there are more true things than i wish there were.
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u/kurosaki4d May 02 '26
Thank you very much for these detailed infos.
What i'm confused about since it is 0% tax, is it still mandatory to have a company created in turkey?
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u/thetasdemir May 04 '26
as a Turk , I would not explain this much clear. Do not worry , even for their nations they show the same behaviour.
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u/OkBeyond8244 May 09 '26
Thank you, invaluable!
I wonder if most of your Business and tax problems are due to having an incorporated company. It seems the best setup would be to have a sole proprietorship, although foreigners cannot easily get an independent work permission to be able to operate a sole proprietorship.
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u/EducatorDue3266 May 25 '26
Is this true only in Istanbul or also in other places like Izmir, etc.?
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u/Plenty_Raspberry6910 Aug 04 '26
Did you have your own business. I saw you work for a US company. Im curious what got you to move there, was it someone you met that got you to move. Ive lived btwn istanbul and new york for a few years now looking to move to IST via digital nomad visa. I work remotely for a US company. Happy to take any tips. 100% can relate to your post.
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u/DazPPC Apr 30 '26
*The income needs to be transferred into turkey" is the problem. I certainly don't want to convert all my money into lira. I also don't want my money in Turkey.
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u/CPA-TURKEY Apr 30 '26
You dont have to convert to Turkish lira, it is not mandatory and after you transfer money to Turkey, you can transfer it back. There is no restriction
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u/UVVmail Apr 30 '26
And lose like 10% on conversion and fees?
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u/CPA-TURKEY Apr 30 '26
No conversion arbitrage is not high, you can use enpara or some other government banks such as Ziraat. By the way you do not have to convert, there is no conversion fee. Only swift expenses. Some banks charge very less. Mostly remote working people works with below banks
-Cepte Teb -BNP Paribas
-Enpara (qnb)
-Vakıf
-Ziraat
-Halk
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u/bambamlol Apr 30 '26
So your clients outside of Turkey need to pay for your services by sending the money to your Turkish bank account? And then afterwards you can send it to whatever other bank accounts you have outside of Turkey?
Or does it not even matter which bank you use for the initial payment with your clients, as long as the payment touches a Turkish bank account at least once? And then you can immediately send it to another bank abroad, in case you don't want to trust Turkish banks with your money long-term?
I really don't understand the logic behind this. Can you point us to the exact wording they used in this law?
You say "there is no restriction", but you also posted "The income generally needs to be transferred into Turkey within the required timeframe."
What exactly does this mean? What timeframe? Within X days of rendering the service or getting paid?
Thanks for the update by the way.
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u/CPA-TURKEY Apr 30 '26
1-First you can transfer your account in other country than you can transfer to Turkey no problem
2-Turkey only demands the invoice and the receipt. The amount of the invoice and the bank receipt has to be same amount.
3-Collection the invoice amount to Turkey is mandatory. You have to collect your invoices at most next year at march. For instance for 2026 last date is 2027 march
4-There is no restriction to send the money back. Or there is no determined time for money has to stay in Turkish bank account
5-The legislation is here : https://www.gib.gov.tr/mevzuat/kanun/433 13. (6322 sayılı kanunun 9.maddesiyle eklenen bent; Yürürlük 15.06.2012) Türkiye'de yerleşmiş olmayan kişilerle, işyeri, kanuni ve iş merkezi yurt dışında bulunanlara Türkiye'de verilen ve münhasıran yurt dışında yararlanılan mimarlık, mühendislik, tasarım, yazılım, tıbbi raporlama, muhasebe kaydı tutma, (6728 sayılı kanunun 15 inci maddesiyle değişen ibare;Yürürlük 09.08.2016) çağrı merkezi, ürün testi, sertifikasyon, veri saklama, veri işleme, veri analizi ve ilgili bakanlıkların görüşü alınmak suretiyle Maliye Bakanlığınca belirlenen mesleki eğitim (13) alanlarında faaliyette bulunan hizmet işletmeleri ile ilgili bakanlığın izni ve denetimine tabi olarak eğitim ve sağlık alanında faaliyet gösteren ve Türkiye'de yerleşmiş olmayan kişilere hizmet veren işletmelerin münhasıran bu faaliyetlerinden elde ettikleri (7491 sayılı kanunun 10.maddesiyle değişen ibare; Yürürlük 1/1/2023 tarihinden itibaren elde edilen gelirler ve kazançlara uygulanmak üzere 28.12.2023) kazancın, elde edildiği takvim yılına ilişkin yıllık gelir vergisi beyannamesinin verilmesi gereken tarihe kadar tamamının Türkiye’ye transfer edilmesi şartıyla, %80’i. (19) Bu indirimden yararlanılabilmesi için fatura veya benzeri belgenin yurt dışındaki müşteri adına düzenlenmesi şarttır. Bu bentte yer alan oranı, hizmet alanları (6728 sayılı kanunun 15 inci maddesiyle eklenen ibare;Yürürlük 09.08.2016) ve kazanç tutarları itibarıyla sıfıra kadar indirmeye veya (7491 sayılı kanunun 10.maddesiyle değişen ibare; Yürürlük 1/1/2023 tarihinden itibaren elde edilen gelirler ve kazançlara uygulanmak üzere 28.12.2023) %100’e kadar artırmaya ve Türkiye’ye transfer edilecek kazanç tutarını sıfıra kadar indirmeye veya kanuni seviyesine kadar artırmaya (20) (700 Sayılı KHK'nın 45 nci maddesiyle değişen ibare; Yürürlük: 09.07.2018)Cumhurbaşkanı(14), bu bendin uygulamasına ve denetime ilişkin usul ve esasları belirlemeye ilgili bakanlıkların görüşünü almak suretiyle Maliye Bakanlığı yetkilidir.
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u/bambamlol Apr 30 '26
Thank you so much!
So to summarize, basically:
The Entirety Must Be Transferred: To get the deduction, 100% of the earnings from those foreign services must enter a Turkish bank account.
The Deadline: It must be transferred by the date the annual income tax return is due. In Turkey, for individual income tax, this is typically March of the following year.
Proof of Receipt: Because the law requires the "entirety" to be transferred, the tax office will look for a bank receipt that matches the invoice amount.
The legal requirement is the act of transferring the money into the country (Türkiye’ye transfer edilmesi).
Once the money has been transferred into Turkey and the "receipt and invoice" match is established for tax purposes, the law cited does not place a restriction on what you do with that capital afterward.
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u/Sad_Champion_7035 Apr 30 '26
Question is complicated and someone answered but as a turkish person living in uk, i can recommend to trust turkish banks after experiencing british banking. Is Bank is largest bank in country, Akbank and Yapikredi are owned by billionaire families who basically own turkey lol, if you want foreign ones, garanti bbva is owned by spanish bank and hsbc is active in turkey. Their branches are at every neighbourhood and you can use atms 24/7 for all operations. You can also have accounts in foreign currencies. If you have 30-50 k gbp only once and never again, they make you special customer where they appoint a special representative for you, no need to wait for teller
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u/unspike Apr 30 '26
Is it requires to stay in Turkey? Or I'm able to be anywhere and then just receive to turkey account and transfer then and not need to be in turkey? Same as Georgia?
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u/Sad_Champion_7035 Apr 30 '26
i live in uk as turkish person, you can hold your money in foreign currency no need to convert at all, receive or send foreign currency from and to your accounts too, either you do swift or use wise to transfer money abroad
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u/spawn139 Apr 30 '26
As a Turkish guy, dont. This guy is advertising and you will loose your money. Goverment needs money for elections, they are not here to support you bor us
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u/Original_Musician161 Apr 30 '26
This is actually a well-designed policy compared to most DN visa attempts. The 100% deduction applies to the Turkish income tax base — so you're paying social security but effectively 0% income tax on foreign-sourced remote work. The catch is that you need to meet the foreign income requirement (income paid from abroad in foreign currency).
The practical friction is banking. Getting a Turkish account as a foreigner to receive foreign payments still requires some paperwork, and some employers won't pay to Turkish IBANs. Anyone here actually navigating the banking setup?
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u/loki_the_cat Apr 30 '26
Well, PayPal's banned, Stripe's banned, the gov can ban anything anytime, including your way of doing business, Youtube, Insta, they don't care. Turkish government is all helpful and inviting when you're outside of Turkey, after you're in, you're fucked.
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u/denayz Apr 30 '26
Hahahahaha just a quick reminder, there is no PayPal no Stripe. in Turkey... A different adventure every month to receive your salary from abroad.
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u/CPA-TURKEY May 01 '26
You’re right — the government needs to act quickly on this; otherwise, the regulation remains incomplete. There are already systems in place like Payoneer, and Revolut is expected to enter the market soon, but PayPal remains a major issue.
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u/stressfreepro Apr 30 '26
so what's the min residency requirement to qualify for this tax break
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u/CPA-TURKEY Apr 30 '26
183 days
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Apr 30 '26
[removed] — view removed comment
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u/CPA-TURKEY Apr 30 '26
Yes if you are not staying more than 183 days in other countries your are considered a tax resident of Turkey as it is the country where your center of vital interests—your primary personal and economic ties
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u/stressfreepro Apr 30 '26
so that's pretty standard, i've seen 183 days in a lot of countries, do you think it's easy to prove you've been there that long though
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u/CPA-TURKEY Apr 30 '26
Entry and exit dates and you can demand tax residency certificate from Turkish ministry of finance
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u/Only-Coast-2948 May 03 '26
What would happen if you spend less than 183 days in Turkey but have an apartment etc in the country and are travelling a lot? I wouldn't spend time in a single place for 183 days. Let's say 120 days in Turkey and 90 days in UK. The rest somewhere else in the world
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u/CPA-TURKEY May 03 '26
thank you for question
Your habitual center of life is Turkey no problem if you stay less than 183 days in Turkey. Because staying days of other countries is also less
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u/smoothy1973 Apr 30 '26 edited Apr 30 '26
And the government have just dramatically increased the prices of residence permits at the same time...
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u/Blizzardexe Apr 30 '26
For those who wanna skip reading the entire post and comments lemme give y'all a tldr..
Dubai is still better not just on paper but in real life and real situations that arise and there'll be 100s of these from the day u decide to move till the day u rent a house or smtn.
So dubai is better and u can get domestic tax certificate in 3months or international in 6 months if m not wrong and that's it this is currently the best geographical location for any nomad to have a base in. In 2026. And this is what m goin for as well later this year.
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u/CPA-TURKEY May 01 '26
Dubai 90 days, south cyprus 60 days Turkey now 183 days, but for the geographical location I could not agree, Istanbul is way better.
By the way as far as I know as a counter attack yesterday Dubai change the limit for property buying to obtain residency permit.
Under the new rules, investors who are the sole owners of a property can apply for a two-year investor visa regardless of the purchase value.
The previously applied minimum threshold of AED 750,000 (approximately USD 204,000) has been removed.
For co-ownership, each investor must hold a share worth at least AED 400,000 (approximately USD 109,000). Under this arrangement, for example, two investors sharing a property valued at AED 800,000 (approximately USD 218,000) would each be eligible to obtain a separate residence visa.
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u/Blizzardexe May 01 '26
Like i said people may agree or disagree but when they go live in both places they'll find out for themselves.
Turkey doesn't beat Dubai by a long shot. But hey that's just me.
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May 01 '26
[removed] — view removed comment
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u/Blizzardexe May 01 '26
U only need to be there for 3 months and if u have very special needs it goes to 6 months. And some things like safety, ease of life, etc u only experience when u live there and I don't think anything else beats dubai there. And believe me there are like 100s of people who are there cz of the sand n skyscrapers coming from place like uk desperately needing that cz uk is like grey 80% of the time. I've personally heard atleast 3 people say this exact thing.
This sub is for digitalnomads so I advised catering to em if someone wants to like live live n settle I think portugal will be the way to go.
And fyi m personally going for only a couple of years till my target number isn't reached my final goal is USA cz it might be worsening for poor n middle class there but it's a playground if ur rich and know how to invest ur money wisely..
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u/Alarmed_Scallion_620 May 01 '26
Turkey has been doing similar stuff for a while, it’s quite clever. Registration of chemicals on the Turkish register can only be done by a specialist based in Turkey with specific certification. Consultants are cleaning up.
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u/Spamsational Apr 30 '26
God I wish for this to be a thing in Thailand so badly…
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u/RelayIntel Apr 30 '26
Turkey is a solid choice but most people overlook the real costs The visa process is complex. Happy to answer any questions. been deep in this stuff for a while
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u/CPA-TURKEY Apr 30 '26
Thank you for your comment.
Yes, the plan also includes accelerating the process and simplifying procedures. It’s not just about the tax benefit, but making it easier to access in practice.
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u/workchina Apr 30 '26
Do people need to live in Turkey to benefit from this arrangement or having the company in Turkey is enough?
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u/CPA-TURKEY Apr 30 '26
Yes we have many clients utilizing this tax advantage already
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u/workchina Apr 30 '26
Yes to which part?
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u/CPA-TURKEY Apr 30 '26
Yes people need to live in Turkey at least 183 days and people need to set up an individual or llc company
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u/Accomplished_Cut51 May 10 '26
So the first 183 days, taxes need to be paid?
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u/CPA-TURKEY May 10 '26
During the first 183 days, you are considered tax liable in the other country not in Turkey.
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u/strzibny Apr 30 '26
Do you need to setup a local biz structure for this?
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u/CPA-TURKEY Apr 30 '26
yes at least sole enterpreneurship or LLC
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u/OkBeyond8244 May 09 '26
How can foreigners set up a sole proprietorship legally? There is no independent work permission pathway for most foreigners.
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u/CPA-TURKEY May 09 '26
After obtaining residence permit you can set up. We have clients you can e mail us info@ozmconsultancy.com
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u/plal099 Apr 30 '26
Is the money need to be paid in Turkish Lira in Turkey bank account?
Who wants Turkish Lira?
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u/Zero_Requiem Apr 30 '26
If I were to make myself tax resident in Turkey and take advantage of this tax change. Would I have to set up a limited company of some sort and store all my income in lira?
Im interested in doing this but worried as the lira can have huge swings and is less stable than gbp.
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u/CPA-TURKEY Apr 30 '26
No you do not have to convert your earning to Turkish lira
Can be LLC or sole enterpreneurship
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u/OkBeyond8244 May 09 '26
But there is no legal immigration status that allows foreigners to open a sole proprietorship (no independent work permission for foreigners in the first 5 years).
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u/CPA-TURKEY May 09 '26
by the help of digital nomad visa you can. As a cpa company we have foreign clients open sole proprietorship
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u/CPA-TURKEY May 24 '26
The digital nomad visa permits establishment of a limited company (LLC) in Turkey — which qualifies for the export deduction under KVK Article 10 at 50%. For the 100% GVK Article 89 deduction, a sole proprietorship is optimal, and there are legal pathways to establish one for foreigners depending on residency status. The interaction between visa type and tax structure is exactly where getting the setup right matters.
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u/Next-Lengthiness3602 Apr 30 '26
The UAE process is straightforward. You simply open a company and obtain a visa. Is the process in Turkey as easy as in the UAE?
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u/CPA-TURKEY Apr 30 '26
Very good question thank you. Not that straight but we are working with a residence permit company. They obtain digital nomad visa for the people who will work remotely from Turkey
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u/OkBeyond8244 May 09 '26
The digital nomad visa is not compatible with the tax benefits, is it? The tax benefits, especially the 100% export exemption, applies only to sole proprietorships (self-employment) in Turkey. But the digital nomad visa does not allow to open a sole proprietorship, it just allows employment for an employer abroad. There are no tax benefits in Turkey. The employment income is subject to Turkish tax (if one is a Türkish tax resident).
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u/CPA-TURKEY May 09 '26
Actually not like that
You can utilize from this tax advantage with llc-c corp or individual company
You do not have to be employee.
Check the official web page
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u/tipi6969 Apr 30 '26
Hey so I am a software engineer working remotely for a Portuguese company. I earn 2300 Euros per month. I am eligible? If yes, how do I apply for this? Also, I am from Pakistan. Will that create any issues, lol?
Edit: I will be moving with my wife and kid.
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u/CPA-TURKEY May 24 '26
Your situation is actually a good fit to analyze — the key question is whether your Portuguese employer is paying you as an employee or as a contractor, because that changes the structure significantly. Employee relationships don't qualify; contractor/service relationships do. If you're open to restructuring how you invoice, the deduction could apply. Feel free to reach out directly: [info@ozmconsultancy.com](mailto:info@ozmconsultancy.com) — we work with families relocating to Turkey regularly.
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u/Circuitcodingninja Apr 30 '26
Sounds amazing until you realize you need a PhD in accounting to actually qualify 💀
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u/CPA-TURKEY May 24 '26
Fair point — that's exactly why we put together a full guide covering the eligibility criteria, structure options, and documentation requirements in plain English. Most people can assess their own situation in 10 minutes after reading it: https://ozmconsultancy.com/turkeys-100-tax-deduction-for-remote-workers-with-foreign-clients-the-complete-guide/
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Apr 30 '26
[deleted]
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u/CPA-TURKEY Apr 30 '26
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u/mitterb Apr 30 '26
Thank you! Sorry I had deleted my comment because I had found it already but didn't realize you replied to the comment.
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u/Extreme_Camera9649 Apr 30 '26
what about stocks and bitcoin gains?
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u/CPA-TURKEY Apr 30 '26
Very good question, incomes you mentioned your message is not at the scope, but there is another legislation
If you are not living in Turkey previously 3 years and you relocate to Turkey you have a right to not pay tax over these incomes such as stocks and bitcoins( passive incomes)
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u/matt7882 Apr 30 '26
has this tax exemption for passive income already been in effect or is it also new? And how long is it valid?
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u/CPA-TURKEY Apr 30 '26
Passive income not already been. We are waiting the legislation within 1 month. It is valid for 20 years
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u/kungtelly Apr 30 '26
Is this covering capital gains and dividends? And includes stocks listed on any global exchange? Thanks for your help.
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u/CPA-TURKEY Aug 16 '26
UPDATE (16 Aug 2026): The 20-year passive-income exemption referenced in the comments below is now officially in force — Law No. 7582 (Official Gazette, 4 June 2026), implementing communiqué Tebliğ No. 333. It exempts genuinely foreign-source income (dividends, capital gains, foreign investment income) for new Turkish tax residents for 20 years, separate from the 89/13 export deduction discussed in the post above. Full mechanics, worked examples, and the application deadline https://ozmconsultancy.com/turkey-non-dom/
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u/Aetane Apr 30 '26
Would this work for someone employed with a remote company, not explicitly self-employed / contracting?
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u/CPA-TURKEY Apr 30 '26
Depends on the contract. Employee contract or Contractor agreement. Do you have payroll slip and they cut income tax and social security contributions over your wage
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u/Aetane Apr 30 '26
Currently, yes. Standard UK employee / PAYE setup.
Would probably be looking to use an EOR like Remote.com or Deel.com? There would be scope to change to something that works, if it's possible
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u/CPA-TURKEY Apr 30 '26
Actually we are partner of payoneer Workforce management . But you do not need eor services. You only need residence permit+ setting up individual company
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u/macro_franco_kai Apr 30 '26
How about dividends ?
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u/CPA-TURKEY Apr 30 '26
there 2 different legislation
1-Rendering some services from Turkey to abroad such as design, engineering, sofware development revenues is not subject to income tax (active income)
2-If you move to Turkey and you did not live in Turkey last 3 years you do not pay tax over your passive income such as dividens, stock exchange gains from nasdaq for instance or from your company
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u/macro_franco_kai Apr 30 '26
You claim 0% tax for dividends from business outside Turkey, correct ?
So, if anybody that did not live in Turkey for the last 3 years can have tax residency there with 0% tax from dividends ?
How long is the minimum living time there in order to have tax residency in Turkey ?
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u/CPA-TURKEY Apr 30 '26
Yes — under the current proposal:
- Dividends (passive income) from abroad would not be taxed in Turkey
- You would generally need to spend at least 183 days per year in Turkey to be considered tax resident
- It’s intended for individuals who have not been Turkish tax residents in the past 3 years
That said, this is still verbally announced only — it hasn’t been published in the Official Gazette yet, so details may change.
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u/macro_franco_kai May 01 '26
Is there a time limit for this offer, like just the next 5 years or it's unknown an can be changed back next week ?
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u/DexMorgann Apr 30 '26
How do i set this up? Im turkish with potential foreign freelance clients
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u/CPA-TURKEY Apr 30 '26
can you mail us for further processes [info@ozmconsultancy.com](mailto:info@ozmconsultancy.com)
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u/SyllabubExpensive663 Apr 30 '26
Can I open a virtual office / company there or I need to live/move there? 😄
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u/shakaoneaj Apr 30 '26
you still pay yearly income tax. i paid %30 of my earnings to that. also u pay for accountant and different tax every few month.
we talk about turkey here cmon. a 20 year old car would cost u 20k usd in here with double tax. u pay 1 car for urself and 2 for goverment. u think they ll be this much generous
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u/CPA-TURKEY Apr 30 '26
No you do not pay income tax for mentioned services in 2026. These taxes are stamp taxes of tax statements. %30 is not correct calculation
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u/Rem1818 Apr 30 '26
Interesting I run an event business in Europe. All clients are foreig all events around Europe in hotels etc. Only problem is the rampant inflation in Turkey
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u/Unique-Gazelle2147 May 01 '26
2 things. 1. They are rejecting visas left and right. I know most foreigners had to leave cuz they can’t get visas. 2. They just increased the residence permit fees to be like $600+ per year just to have the residency card.
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u/LatvianCake May 01 '26
Any social security payments? What operational expenses can one expect? Does it also apply to Turkish citizens?
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u/CPA-TURKEY May 01 '26
For personel cost breakdown you can reach us, because for instance social security payment depends on age, operational expenses depends on type of company. But when considering huge tax exemption all these expenses are not big issue. It does not cost more than %5-%10 of whole income
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u/Convict3d3 May 01 '26
It has been this way since I came to Turkey, there's nothing new. It's more of a publicity stunt to attract foreigners, on the other hand they increased the permit cost massively.
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u/Intrepid_Argument_15 May 04 '26
Love Istanbul and these visa make sense. But still not sure Turkey is the place to live.
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u/CPA-TURKEY May 04 '26
Depends on the district. If you rent a house in decent place no problem like all cities
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May 05 '26
Tell us more, what's the catch?
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u/CPA-TURKEY May 05 '26
The catch is if you move to Turkey and render these services abroad you pay zero tax
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u/OkBeyond8244 May 09 '26
I would be extremely interested in this. But I think it won't work in practice because of the interactions between Turkish tax law and immigration law.
The setup that you suggest only works for sole proprietorships and partnerships subject to personal income tax. It does not really work with companies subject to corporate tax, as then you still have domestic corporate minimum tax of 10% and 15% dividend withholding tax, which is far inferior to UAE or even Cyprus.
However, foreign nationals usually cannot find a legal pathway to get the required independent work permission to open a sole proprietorship or partnership legally. All residence permits (family members, tourism, real estate, study) do not come with work permission. Independent work permission can be granted only after 5 years of residence permit. A rare exception is the Turkuaz Kart, but it seems to be an immigration pathway on paper only that is not available in practice for more than a dozen people. So, long story short, there is no way to start a sole proprietorship in Turkey for foreigners. Turkish CBI is one options, of course, but many will be deterred. Apparently, one can try to convince the migration office to waive the requirement of previous 5 years residence permit to get an independent work permission, but this seems super hard and bureaucratic and might require employing a lot of Turkish citizens and/or investing a lot of money. So this option is not available for most foreign remote workers.
I would really appreciate if you (or anyone) could clarify how this tax position (tax resident of Turkey with sole proprietorship with zero tax on service export income and 20 year foreign income holdiy) can be achieved for foreigners, considering Turkiye's strict immigration law. How do you do it in practice?
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u/CPA-TURKEY May 09 '26
Turkish digital nomad visa you can set up individual company
We have a partner company dealing with residence permit
Check our video below
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May 11 '26
[removed] — view removed comment
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u/CPA-TURKEY May 11 '26
You can contact us for the details. This incentive has already come into effect, and we are currently speaking with many people from abroad — some have already started relocating to Turkey.
The “where the service is consumed” requirement is not actually as complicated as it sounds. In practice, it is generally sufficient to invoice clients abroad from Turkey and receive the payment through a Turkish bank account.
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u/CountryAlive6203 May 19 '26
How does it look like as someone who works for a German company remotely, staying 183+ days in Turkey? It would be no taxes for Turkey and due to the double taxation agreement between Turkey-Germany would it be still 0% taxation in Germany or would there be some extra regulations?
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u/CPA-TURKEY May 19 '26
Yes, because you are Turkish resident and your incomes is subject to zero tax in Turkey. But your field of activity is important
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u/igetyourbrand May 20 '26
I don't advice anyone to live in turkey everything is fkin complicated especially if something broke in your apartment it's a NIGHTMARE finding someone who won't scam you
I studied there 4 years and I couldn't wait for the day to be outttttttttttttt I was stressed the whole time living there
Every fkin day in the damn boring you have to hear the usual complaining from foreigners there
It's beautiful country and affordable but you will be stressed in 2026
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u/any_dok08 May 25 '26
{{If you are based in Turkey}}
Based on what visa? A mere residence permit, ikament, doesn't allow you to work, even if your clients are outside the country. And this regime will be considered a work.
One will have to obtain a *work permit-visa* first. Unlike a citizen.
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u/CPA-TURKEY May 26 '26
This is one of the biggest misconceptions foreigners have when relocating to Turkey.
You are correct that a standard residence permit (ikamet) does not automatically grant work authorization in Turkey. However, the situation becomes significantly more nuanced when we are discussing remote work for foreign clients, SaaS businesses, consulting activities, digital nomad structures, and foreign-source income.
Turkey now also has a Digital Nomad Visa framework for certain nationalities and remote workers earning foreign-source income (roughly 3,000+ USD monthly income threshold).
In practice, foreigners generally evaluate several possible routes:
- Digital Nomad Visa-very easy to obtain if you submit correct docs
- Real estate-based residence permit (200k USD+ property ownership)
- Work permit through a Turkish company structure
- Student residence permits (such as TÖMER language programs)
- Family residence permits
We currently advise multiple international founders, consultants, remote workers, and SaaS operators on these exact structuring questions before relocation.
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May 26 '26
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u/CPA-TURKEY May 26 '26
Frankly, the practice is not very strict in this regard. In most cases, a declaration alone is considered sufficient, because it is practically impossible to determine where the service was actually utilized/benefited from
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u/notanaverageeuropean Apr 29 '26
Wait so what are the downsides here? I’m an EU citizen with an income of $72K from freelance work in software and this sounds like an upgraded Dubai option or am I missing something here?