Tax residency in Turkey depends on two tests under Article 4 of the Income Tax Law: people domiciled in Turkey, and people who stay in Turkey continuously for more than 6 months within a calendar year, are treated as settled in Turkey and become full taxpayers on their worldwide income; temporary absences do not interrupt the period. Non-resident foreigners are limited taxpayers, taxed only on Turkish-source income. Since 2026, people newly settling in Turkey who meet the conditions enjoy a 20-year income tax exemption on foreign income (repeated Article 20/D).
Author: Av. Egemen Yasin Şahalioğlu · Istanbul Bar Registration No. 66465 · Last updated: 06.11.2026
Short answer: tax residency in 2026
- Full taxpayer: a person domiciled in Turkey or staying more than 6 continuous months in a calendar year; worldwide income is taxed.
- Limited taxpayer: a non-resident; only income earned in Turkey is taxed.
- A residence permit or citizenship does not by itself create tax residency; actual settlement decides.
- Double taxation: Turkey has treaties with more than 90 countries; in a conflict, the treaty’s residence rules apply.
- New: people settling from 1 January 2026, with no domicile or tax liability in Turkey in the previous 3 years, get a 20-year exemption on foreign income.
Table of contents
- What is tax residency?
- How is the 6-month rule calculated?
- Who is not resident despite staying 6+ months?
- Consequences of full and limited liability
- 20-year exemption on foreign income
- Double tax treaties
- How to obtain a tax residency certificate
- Practical scenarios for investors
- Frequently asked questions
- Official sources
What is tax residency in Turkey?
Tax residency decides in which country a person is taxed on worldwide income. Under Article 3 of the Income Tax Law (GVK), people settled in Turkey are full taxpayers; Article 4 defines settlement:
- Persons domiciled in Turkey: under Article 19 of the Turkish Civil Code, domicile is where a person lives with the intention of staying permanently.
- Persons staying more than 6 continuous months in a calendar year: temporary departures do not interrupt the stay.
Nationality is not decisive: a foreigner can be a full taxpayer, and a Turkish citizen living abroad can be a limited taxpayer.
How is the 6-month rule calculated?
- The period is assessed per calendar year (1 January–31 December).
- The law says “continuously”; temporary absences such as holidays or business trips do not break the period.
- Entry-exit records, lease, residence permit, and family and business ties are considered together.
- A residence permit in Turkey does not create residency on its own but is important evidence of the actual stay.
Who is not resident despite staying more than 6 months?
Under Article 5 of the GVK, the following foreigners are not treated as settled even if they stay more than 6 months:
- Businesspeople, scientists, experts, officials and press correspondents who come for specific, temporary assignments,
- Those who come for education, medical treatment, rest or travel,
- Those forced to stay for reasons beyond their control, such as detention or illness.
Consequences of full and limited tax liability
- Full taxpayer: declares all income in Turkey and abroad; foreign taxes paid can be credited within limits under Article 123.
- Limited taxpayer: only Turkish rent, capital gains, interest, dividends and income from work done in Turkey are taxed; much of this is withheld at source.
- Property rules apply in both cases: rental income tax, capital gains tax and property tax.
20-year income tax exemption on foreign income (2026)
Under repeated Article 20/D added to the GVK by Law No. 7582 (Official Gazette: 4 June 2026) and Income Tax General Communiqué No. 333 (Official Gazette: 4 July 2026):
- Individuals treated as settled in Turkey on or after 1 January 2026,
- who had no domicile and no tax liability in Turkey in the previous 3 calendar years,
- are exempt from income tax on income earned outside Turkey for 20 years.
- The exemption covers income tax only; Turkish-source income (rent, gains on sale, salary in Turkey) is taxed normally.
- The notification procedures and deadlines in the Communiqué must be followed; each condition should be reviewed individually.
This rule is now central to tax planning for investors moving to Turkey and for families obtaining Turkish citizenship by investment.
How do double tax treaties work?
- Turkey has double tax treaties with more than 90 countries, including Germany, China, Iran, the United Kingdom and the United Arab Emirates.
- If a person is resident in both countries, the tie-breaker in Article 4 of the treaty applies: permanent home, centre of vital interests, habitual abode, nationality.
- Under Article 90 of the Constitution, treaty provisions prevail over domestic law.
- Income from real estate is generally taxed where the property is located; the other country applies a credit or exemption method.
How is a tax residency certificate obtained?
- Submit a petition to your tax office or through the Revenue Administration’s digital tax office.
- Document that you are resident in Turkey and taxed on worldwide income (residence permit, lease, entry-exit records, etc.).
- Present the certificate in the other country to benefit from treaty provisions such as reduced withholding.
A Turkish tax number for foreigners is needed first.
Practical scenarios for investors
- Investor staying 3 months a year in an Istanbul flat: usually a limited taxpayer; only Turkish rent and sale gains are taxed.
- Entrepreneur moving to Turkey with family and staying more than 6 months: becomes a full taxpayer; if the conditions are met, foreign income may benefit from the 20-year exemption.
- Foreigner setting up and managing a company in Turkey: salary is taxed in Turkey; company formation and work permit should be planned together.
Frequently asked questions
When does a foreigner become tax resident in Turkey?
When domiciled in Turkey or staying continuously in Turkey for more than 6 months in a calendar year.
Does a residence permit make me tax resident?
Not by itself; actual settlement and length of stay decide.
Does an investor who obtains Turkish citizenship automatically become a full taxpayer?
No. The test is settlement in Turkey, not citizenship.
Who can use the 20-year foreign income exemption?
Individuals treated as settled in Turkey from 1 January 2026 who had no domicile and no tax liability in Turkey in the previous 3 calendar years.
Do short trips abroad break the 6 months?
No. The law expressly states that temporary absences do not interrupt the stay in Turkey.
What if I am resident in two countries?
The residence tie-breaker rules of the double tax treaty (permanent home, centre of vital interests, etc.) decide which country has priority.
Official sources
- Income Tax Law No. 193, Articles 3, 4, 5, 6, 123 and repeated Article 20/D
- Law No. 7582 and Income Tax General Communiqué No. 333 – Official Gazette
- Revenue Administration (GİB) – double tax treaties
- Turkish Civil Code No. 4721, Article 19
Related articles
- Capital gains tax in Turkey
- Rental income tax in Turkey
- Property tax in Turkey
- Buying off-plan property in Turkey
Av. Egemen Yasin Şahalioğlu — attorney registered with the Istanbul Bar (No. 66465), practising since 2019. Egemen Global Law Office, Skyland Istanbul, Sarıyer. Consultations in Turkish, English, Arabic and Persian. Phone/WhatsApp: +90 532 276 80 85 · lawyer@egemenyasinsahalioglu.av.tr
This article is for general information only and does not replace legal or tax advice on your specific case. Tax planning requires individual review.