Against the backdrop of rising global demand for residency planning and wealth management, the Turkey Citizenship by Investment Program has once again received a significant boost.
Recently, Turkey's Law No. 7582 was officially promulgated in the Official Gazette. This means that the Turkish tax reform package has completed the entire legislative process and has officially become current law.
This reform not only strengthens Turkey's appeal to global high-net-worth individuals, entrepreneurs, and cross-border investment families, but also elevates the value of Turkish citizenship from "travel convenience, asset allocation, and a stepping stone to the U.S." to a comprehensive status solution that integrates tax planning, corporate structuring, and family legacy functions.
I. 20-Year Tax Exemption on Personal Offshore Income
Status Value Further Upgraded
According to the announcement, eligible individuals can enjoy a full exemption from income tax on offshore income for up to 20 years. Specifically, this mainly applies to the following two categories of people:
• Non-local residents: Non-tax residents of Turkey enjoy the tax exemption policy for income earned outside of Turkey.
• Local residents: Those who meet the criteria of "having been a non-tax resident of Turkey for the past 3 years" and who move to Turkey in the future to become permanent tax residents of Turkey can enjoy a 20-year tax exemption on offshore wages, corporate dividends, rental income, bank interest, and stock gains.
Categories of offshore income eligible for exemption include: offshore labor and salary income; offshore dividend income; offshore corporate profit distributions; offshore interest income; offshore real estate rental income; various types of offshore investment income; and capital gains from offshore securities and financial assets.
This means that for families with global assets, cross-border income, and multi-country business operations, Turkish citizenship is no longer just a passport, but an important tool that can be combined with long-term wealth management, asset allocation, and residency arrangements.
II. Inheritance Tax as Low as 1%
Facilitating Family Wealth Succession
In addition to the tax exemption on personal offshore income, eligible individuals can also enjoy a 1% preferential rate on inheritance and gift taxes.
For high-net-worth families who prioritize family asset succession, overseas asset arrangements, and wealth protection for the next generation, this policy holds significant planning value.
Many families configure a second citizenship not just for current travel convenience, nor just for short-term backup, but for the sake of family security, asset continuity, and status options for the next twenty or thirty years, or even for the next generation.
This Turkish tax reform makes the connection between status configuration and wealth succession even tighter.
III. Enhanced Corporate Tax Incentives
Suitable for Cross-Border Business Layouts
• The income tax rate for manufacturing exporters in Turkey has been reduced from 20% to 9%, and the income tax rate for other exporters has been reduced to 14%, significantly lowering corporate operating costs;
• Companies registered in the Istanbul Financial Center enjoy tax exemptions on re-export trade income, while companies registered outside the financial center can receive a 95% tax reduction.
This means that Turkey is using tax policies to attract more international capital, regional headquarters, cross-border trade enterprises, financial service firms, and high-value-added service industries. For high-net-worth individuals, Turkey is not only a citizenship choice but also an important pivot for international business operations.
IV. Compliant Repatriation of Offshore Assets
Providing a Window for Asset Reallocation
This tax reform also introduces a preferential arrangement for asset repatriation. Individuals and companies can declare and transfer offshore funds, gold, foreign exchange, and securities within a specified period. The longer the assets are retained, the lower the applicable tax rate: 0% for a 5-year holding period, 1% for 4 years, 2% for 3 years, 3% for 2 years, and 4% for 1 year.
V. Major Power Status Plus Tax Dividends
Turkey Investment Popularity Continues to Rise
In the past, many people focused on Turkish citizenship primarily for its major power background, location advantages, application thresholds, and its value as a stepping stone for the E-2 visa to the U.S. Today, with the implementation of the new tax policy, the appeal of Turkish citizenship is further extending to the levels of tax planning and wealth management.
For high-net-worth families, the value of a second citizenship is no longer limited to "having an extra passport." A truly valuable citizenship should be able to serve multiple needs simultaneously, including family security, children's education, asset allocation, tax planning, corporate internationalization, and wealth succession.
Against this background, the comprehensive advantages of the Turkey Citizenship by Investment Program are even more prominent. Applicants can apply for a Turkish passport for the whole family by depositing 500,000 USD or more in foreign currency, or by purchasing property starting from 400,000 USD. While obtaining major power status, they also gain more room for cross-border asset allocation, long-term family planning, and global corporate layout.
For those who are considering a second citizenship, cross-border asset allocation, and long-term family planning, now is an important time to pay attention to the Turkey Citizenship by Investment Program.
As an active promoter of European investment immigration projects and an immigration agency that introduced the Turkey Citizenship by Investment Program to China early on, in April 2019, WorldWay partnered with the Turkish Embassy in China, the Consulate General in Shanghai, and the Consulate General in Guangzhou to hold the official launch conference and China initiation ceremony for the Turkey Citizenship by Investment Program, officially introducing the Turkey Citizenship by Investment Program, which is highly anticipated by global investors, to China! To immigrate to Turkey, choosing WorldWay means choosing more professional, more secure, and more trustworthy citizenship planning services.
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