Summary of the 20-D Certificate and Tax Advantages for Moving to Turkey
Bağımsız Denetçi/CPA
17 Haziran 2026
Summary of the 20-D Certificate and Tax Advantages for Moving to Turkey
If you are a Turkish citizen who moved abroad years ago or a foreign citizen planning to live in Turkey, you can benefit from significant tax advantages if you plan to establish your life in Turkey.
*What is the Tax Advantage?
According to Law No. 7582, individuals considered residents in Turkey will be exempt from income tax on earnings obtained abroad, provided they do not have residence or tax liability in Turkey for the last three calendar years before becoming a resident. This exemption lasts for 20 years and is applicable only to individuals, not companies. Additionally, in the case of death during the exemption period, heirs will only be taxed at 1%.
* Types of Income Exempt from Taxation in Turkey
The tax exemption focuses on passive income streams, including:
1. Capital Gains from Share Sales: If you move to Turkey and sell shares (e.g., from a startup), you may avoid taxes on the earnings.
2. Dividend Income: If you have investments generating regular dividend income from foreign stocks (like those listed on Nasdaq) and meet the requirements, you could avoid taxation on that income.
3. Rental Income: Income from overseas rental properties will not be taxed in Turkey. For example, a Turkish national earning rental income from properties in Germany can avoid taxes if they relocate.
4. Interest Income: Interest earned from international bank accounts or bonds is also exempt from Turkish income tax under these conditions.
* What Income is Not Exempt?
Important to note is that this regulation only applies to income earned outside of Turkey. For instance:
- Rental income from properties purchased in Turkey is not eligible for this exemption.
- Income from consultancy services or any commercial activity conducted within Turkey does not qualify.
* Who Cannot Benefit from this Regulation?
Individuals who had residency or tax liability in Turkey in the last three years, including self-employed individuals or those earning salaries within Turkey, cannot benefit from the 20-D exemption.
* How to Obtain the 20-D Certificate?
To benefit from the exemption, individuals must apply for the "Exemption Certificate for Income Obtained from Abroad" (20-D Certificate) through the tax office.
- The application must be submitted online, and the tax office will review eligibility based on residency and tax history.
- It is crucial to apply within the stipulated time frame; otherwise, you may lose the right to the exemption.
* Application Deadline
Applications must generally be made by December 31 of the year you establish residency in Turkey. If you move in November or December, the deadline is extended to the end of February of the following year.
Failing to apply on time, even if all conditions are met, means you will lose the tax benefits.
* Conclusion
This regulation presents significant tax-saving opportunities, especially for individuals with substantial passive income streams. Understanding if you qualify for the 20-D Certificate and the relevant income types you can exempt from tax is vital for planning your move to Turkey.
Best regards.
