You Could Soon Move to Turkey and Pay No Tax on Foreign Income for 20 Years

Turkey has announced that individuals living abroad who have not been Turkish taxpayers for the past three years will soon be exempt from taxes on foreign income for 20 years if they relocate to Turkey.

Under the new proposal shared by Turkey’s President Recep Tayyip Erdoğan, foreign investors relocating assets or operations to the country could benefit from zero tax on overseas income for up to 20 years, alongside other cuts in capital gains and inheritance taxes when implemented.

Export-focused companies are also set to receive significantly lower corporate tax rates as part of the initiative.

The package is designed to place Turkey in direct competition with traditional low-tax financial hubs that have long attracted globally mobile capital and high-net-worth individuals.

The policy is still in development, but it reflects a growing trend in which governments compete not only for trade and manufacturing but also for investors, digital entrepreneurs, and remote workers.

As cross-border investing becomes easier, capital increasingly shifts toward jurisdictions offering favorable tax environments, regulatory flexibility, and residency incentives.

The plan could stimulate exports, foreign direct investment, and job creation, particularly in technology and internationally oriented industries.

Still, aggressive tax competition among countries risks triggering a global “race to the bottom,” potentially favoring wealthy investors over domestic taxpayers. So, Turkey needs to verify how such problems can be avoided.